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Bargaining with endogenous disagreement: the extended Kalai-Smorodinsky solution

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  • Bozbay Irem
  • Dietrich Franz
  • Peters Hans

    (METEOR)

Abstract

Following Vartiainen (2007) we consider bargaining problems in which no exogenous disagreement outcome is given. A bargaining solution assigns a pair of outcomes to such a problem, namely a compromise outcome as well as a disagreement outcome: the interpretation is that the latter results if the compromise outcome is not accepted. For this framework we propose and study an extension of the classical Kalai-Smorodinsky bargaining solution. We present a characterization with an axiom of Independence ofNon-Utopia Information as the main condition.

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Bibliographic Info

Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 008.

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Date of creation: 2010
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Handle: RePEc:dgr:umamet:2010008

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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm

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Keywords: mathematical economics;

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