On a discrete arbitration procedure with quadratic payoff function

Alexander E. Mentcher

Faculty of Physics and Mathematics, Zabaikalsky State Humanitarian Pedagogical University named after N. Tchernishevsky, Chita

Abstract: We consider a two-person bargaining model with arbitrator's participation. The players make their offers and the arbitrator's decision is simulated by a random variable with uniform distribution on the set $\{-n,-(n-1),\dots,-1,0,1,\dots,n-1,n\}$. We use a new arbitration procedure. The Nash equilibrium in this game in mixed strategies is found.

Keywords: non-cooperative game, arbitration scheme, equilibrium, mixed strategies.

UDC: 519.7
BBK: 22.18