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The Kalai-Smorodinsky Bargaining Solution Manipulated by Pre-Donations is Concessionary

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Author Info

  • S. Nuray Akin

    ()
    (Department of Economics, University of Miami)

  • Murat R. Sertel

    (Department of Economics, Bogazici University and Bilkent University, Turkey)

Abstract

This study examines the manipulability of simple n-person bargaining problems by pre-donations where the Kalai-Smorodinsky solution is operant. We extend previous results on the manipulation of two-person bargaining problems to the n-person case and show that in a world where a prebargaining stage is instituted in which the bargainers may unilaterally alter the bargaining problem, bargainers with greater ideal payoffs transform the bargaining set into one on which the Kalai- Smorodinsky solution distributes payoffs in accordance with the Concessionary division rule of disputed property.

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File URL: http://moya.bus.miami.edu/~nakin/Kalai_Smor_Manip.pdf
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Bibliographic Info

Paper provided by University of Miami, Department of Economics in its series Working Papers with number 0718.

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Length: 11 pages
Date of creation: Aug 2007
Date of revision:
Publication status: Forthcoming: Under review
Handle: RePEc:mia:wpaper:0718

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Related research

Keywords: Bargaining Solutions; Pre-donation; Kalai-Smorodinsky;

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References

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  1. Thomson, W., 1989. "Cooperative Models Of Bargaining," RCER Working Papers 177, University of Rochester - Center for Economic Research (RCER).
  2. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
  3. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-18, May.
  4. Sertel, Murat R., 1992. "The Nash bargaining solution manipulated by pre-donations is Talmudic," Economics Letters, Elsevier, vol. 40(1), pages 45-55, September.
  5. Ehud Kalai, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Discussion Papers 179, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Sertel, Murat R., 1994. "Manipulating Lindahl equilibrium via endowments," Economics Letters, Elsevier, vol. 46(2), pages 167-171, October.
  7. Sertel, Murat R. & Ozkal-Sanver, Ipek, 2002. "Manipulability of the men- (women-) optimal matching rule via endowments," Mathematical Social Sciences, Elsevier, vol. 44(1), pages 65-83, September.
  8. Ehud Kalai, 1983. "Solutions to the Bargaining Problem," Discussion Papers 556, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  9. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
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Cited by:
  1. Murat Sertel, 2000. "Manipulability of the Men-(Women) Optimal Matching Rule via Endowments," Departmental Working Papers 0014, Bilkent University, Department of Economics.

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