Dynamic Nash Bargaining Solution for Two-stage Network Games

Abstract

In this paper, two-stage network games are studied. At first stage of the game players form a network, while at second stage they hoose strategies according to the network realized at the first stage. However, there are two kinds of two-stage networks. The first is a special class of two-stage network games when players have the opportunity to revised their network which they formed before. And the second is classical two-stage network. Cooperative setting is considered. In the cooperative case, we use Nash Bargaining Solution as a solution concept. It is demonstrated that the Nash Bargaining Solution satisfies the time consistency property for the special class of two-stage network game. But its not true for classical two-stage network game.