THE REACTIVE BARGAINING SET - STRUCTURE, DYNAMICS AND EXTENSION TO NTU GAMES

The reactive bargaining set (Granot [1994]) is the set of outcomes for which no justified objection exists. Here, in a justified objection t he objector first watches how the target tries to act (if he has such an option), and then reacts by making a profit and ruining the target' s attempt to maintain his share.In this paper we explore properties of the reactive bargaining set, set up the system of inequalities that d efines it, and construct a dynamic system in the sense of Steams' tran sfer scheme that leads the players to this set. We also extend the def inition of the reactive bargaining set to NTU games in a way that keep s it nonempty. To shed light on its nature and its relative ease of co mputation, we compute the reactive bargaining set for games that playe d important role in the game theory literature.