An Axiomatic Approach to Arbitration and its Application in Bargaining Games
We define an arbitration problem as the triplet of a bargaining set and the offers submitted by two players. We characterize the solution to a class of arbitration problems using the axiomatic approach. The axioms we impose on the arbitration solution are "Symmetry in Offers,'' "Invariance'' and "Pareto Optimality.'' The key axiom, "Symmetry in Offers,'' requires that whenever players' offers are symmetric, the arbitrated outcome should also be symmetric. We find that there exists a unique arbitration solution, called the symmetric arbitration solution, that satisfies all three axioms. We then analyze a simultaneous-offer game and an alternating-offer game. In both games, the symmetric arbitration solution is used to decide the outcome whenever players cannot reach agreement by themselves. We find that in both games, if the discount factor of players is close to 1, then the unique subgame perfect equilibrium outcome coincides with the Kalai-Smorodinsky solution outcome.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 12 (2012)
Issue (Month): 1 (September)
|Contact details of provider:|| Web page: http://www.degruyter.com|
|Order Information:||Web: http://www.degruyter.com/view/j/bejte|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Serrano, Roberto, 1997.
"A comment on the Nash program and the theory of implementation,"
Elsevier, vol. 55(2), pages 203-208, August.
- Roberto Serrano, 1996. "A comment on the Nash program and the theory of implementation," Economics Working Papers 161, Department of Economics and Business, Universitat Pompeu Fabra.
- Howard, J. V., 1992. "A social choice rule and its implementation in perfect equilibrium," Journal of Economic Theory, Elsevier, vol. 56(1), pages 142-159, February.
When requesting a correction, please mention this item's handle: RePEc:bpj:bejtec:v:12:y:2012:i:1:n:28. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.