ADAPTIVE PLAY IN MULTIPLAYER BARGAINING SITUATIONS

We study the dual issues of allocation and coalition formation in a mo del of social learning. For a class of economies which can be expresse d in terms of a real valued characteristic function, we first show tha t all self-perpetuating allocations realized from a simple bargaining game must be core allocations although players make simultaneous deman ds for surplus and only on their own behalf. Following this, we provid e a sufficient condition under which the society eventually learns to divide the surplus according to some core allocation, regardless of th e initial history.