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Endogenously proportional bargaining solutions

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  • Ismail Saglam

    ()
    (TOBB University of Economics and Technology)

Abstract

This paper introduces a class of endogenously proportional bargaining solutions. These solutions are inside the class of Directional solutions, which Chun and Thomson (1987) proposed to generalize (exogenously) proportional solutions of Kalai (1977). Endogenously proportional solutions are characterized by weak Pareto optimality and continuity together with two new axioms that depend on the total payoff asymmetry of the bargaining problem. Each of these solutions satisfies the basic symmetry axiom and also a stronger axiom called total payoff symmetry.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 2 ()
Pages: 1521-1534

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Handle: RePEc:ebl:ecbull:eb-12-00888

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Keywords: Cooperative bargaining; proportional solutions; symmetry;

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  1. Jens Leth Hougaard & Mich Tvede, 2010. "n-Person Nonconvex Bargaining: Efficient Proportional Solutions," MSAP Working Paper Series, University of Copenhagen, Department of Food and Resource Economics 02_2010, University of Copenhagen, Department of Food and Resource Economics.
  2. Rubinstein, Ariel & Safra, Zvi & Thomson, William, 1992. "On the Interpretation of the Nash Bargaining Solution and Its Extension to Non-expected Utility Preferences," Econometrica, Econometric Society, Econometric Society, vol. 60(5), pages 1171-86, September.
  3. Roth, Alvin E, 1979. "Proportional Solutions to the Bargaining Problem," Econometrica, Econometric Society, Econometric Society, vol. 47(3), pages 775-77, May.
  4. Anbarci, Nejat & Bigelow, John P., 1994. "The area monotonic solution to the cooperative bargaining problem," Mathematical Social Sciences, Elsevier, Elsevier, vol. 28(2), pages 133-142, October.
  5. Chun, Youngsub & Thomson, William, 1990. "Bargaining with Uncertain Disagreement Points," Econometrica, Econometric Society, Econometric Society, vol. 58(4), pages 951-59, July.
  6. Peters, Hans J M, 1986. "Simultaneity of Issues and Additivity in Bargaining," Econometrica, Econometric Society, Econometric Society, vol. 54(1), pages 153-69, January.
  7. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, Econometric Society, vol. 45(7), pages 1623-30, October.
  8. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, Econometric Society, vol. 43(3), pages 513-18, May.
  9. Chun, Youngsub & Thomson, William, 1990. "Egalitarian solutions and uncertain disagreement points," Economics Letters, Elsevier, Elsevier, vol. 33(1), pages 29-33, May.
  10. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, Econometric Society, vol. 18(2), pages 155-162, April.
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