Gradual bargaining is represented by an agenda: a family of increasing sets of joint utilities, parameterized by time. A solution for gradual bargaining specifies an agreement at each time. We axiomatize an ordinal solution, i.e., one that is covariant with order-preserving transformations of utility. It can be viewed as the limit of a step-by-step bargaining in which the agreement of the last negotiation becomes the disagreement point for the next. The stepwise agreements may follow the Nash solution, the Kalai-Smorodinsky solution or many others.
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Paper provided by Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem in its series Discussion Paper Series with number
dp315.
Length: 19 pages Date of creation: Mar 2002 Date of revision: Publication status: Published in Games and Economic Behavior, 2004, vol. 48, pp. 139-153. Handle: RePEc:huj:dispap:dp315
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Julian Arevalo, 2004.
"Gradual Nash bargaining with endogenous agenda. A path-dependent model,"
Colombian Economic Journal,
Academia Colombiana de Ciencias Economicas, Colegio Mayor de Nuestra Senora del Rosario, Pontificia Universidad Javeriana, Universidad de Antioquia, Universidad de los Andes, Universidad del Valle, Un, vol. 2(1), pages 189-212, November.
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