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Preferences Over Solution to the Bargaining Problem

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  • Border, Kim C.
  • Segal, Uzi

Abstract

There are several solutions to the Nash bargaining problem in the literature. Since various authors have expressed preferences for one solution over another, the authors find it useful to study preferences over solutions in their own right. They identify a set of appealing axioms on such preferences that lead to unanimity in the choice of solution, which turns out to be the solution of Nash. The key axiom is mixture symmetry, implying that if two solutions are equally attractive, then the half-half mixture of them is (weakly) preferred to any other mixture of the two.

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Paper provided by California Institute of Technology, Division of the Humanities and Social Sciences in its series Working Papers with number 923.

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Date of creation: Apr 1995
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Publication status: Published: Published in Econometrica, V. 65, #1 (January, 1997): 1-18.
Handle: RePEc:clt:sswopa:923

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Cited by:
  1. Vartiainen, Hannu, 2007. "Collective choice with endogenous reference outcome," Games and Economic Behavior, Elsevier, vol. 58(1), pages 172-180, January.
  2. Haskel, Jonathan & Sanchis, Amparo, 1998. "A Bargaining Model of Farrell Inefficiency," CEPR Discussion Papers 1902, C.E.P.R. Discussion Papers.
  3. Vincent Martinet & Pedro Gajardo & Michel De Lara & Héctor Ramírez Cabrera, 2011. "Bargaining with intertemporal maximin payoffs," EconomiX Working Papers 2011-7, University of Paris West - Nanterre la Défense, EconomiX.
  4. Walter Trockel, 1999. "Integrating the Nash Program into Mechanism Theory," UCLA Economics Working Papers 787, UCLA Department of Economics.
  5. Naeve-Steinweg, E., 2004. "The averaging mechanism," Games and Economic Behavior, Elsevier, vol. 46(2), pages 410-424, February.

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