Proportional Nash solutions - A new and procedural analysis of nonconvex bargaining problems
AbstractThis paper studies the Nash solution to nonconvex bargaining problems. The Nash solution in such a context is typically multi-valued. We introduce a procedure to exclude some options recommended by the Nash solution. The procedure is based on the idea of the Kalai-Smorodinsky solution which has the same informational requirement on individual utilities as the Nash solution does and has an equity consideration as well. We then use this procedure to introduce two new solutions to nonconvex bargaining problems and study them axiomatically.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Discussion Paper Series with number 552.
Length: 21 p.
Date of creation: Jun 2011
Date of revision:
Note: This Version: 23 June 2011, An earlier version of the paper was presented at the SEA meetings in Atlanta, Georgia, November 2010 and at the CEPET meeting in Udine, Italy, June 2011.
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Other versions of this item:
- Xu, Yongsheng & Yoshihara, Naoki, 2011. "Proportional Nash solutions - A new and procedural analysis of nonconvex bargaining problems," CCES Discussion Paper Series 42, Center for Research on Contemporary Economic Systems, Graduate School of Economics, Hitotsubashi University.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-07-13 (All new papers)
- NEP-GTH-2011-07-13 (Game Theory)
- NEP-MIC-2011-07-13 (Microeconomics)
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