A Two-Stage Bargaining Model of Resources Allocation

Game theory deems players as rational participants and admits the conflict existing between individual rationality and collective rationality. In this paper, an improved two-stage bargaining model is constructed and applied for the allocation of resources. On the basis of bargaining theory, both the players and coordinator´s sense and strategy are modeled, including the discount factor and probability of offering in the second round. Then, the sub-game perfect Nash equilibrium solution to the cooperative game model is given through inverse stage analysis. Finally, simplified examples are presented to illustrate the general ideas of model.