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Robustness of intermediate agreements and bargaining solutions

Author

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  • Anbarci, Nejat
  • Sun, Ching-jen

Abstract

Most real-life bargaining is resolved gradually. During this process parties reach intermediate agreements. These intermediate agreements serve as disagreement points in subsequent rounds. We identify robustness criteria which are satisfied by three prominent bargaining solutions, the Nash, Proportional (and as a special case to the Egalitarian solution) and Discrete Raiffa solutions. We show that the “robustness of intermediate agreements” plus additional well-known and plausible axioms, provide novel axiomatizations of the above-mentioned solutions. Hence, we provide a unified framework for comparing these solutionsʼ bargaining theories.

Suggested Citation

  • Anbarci, Nejat & Sun, Ching-jen, 2013. "Robustness of intermediate agreements and bargaining solutions," Games and Economic Behavior, Elsevier, vol. 77(1), pages 367-376.
  • Handle: RePEc:eee:gamebe:v:77:y:2013:i:1:p:367-376
    DOI: 10.1016/j.geb.2012.11.001
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    References listed on IDEAS

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    1. Trockel, Walter, 2011. "An axiomatization of the sequential Raiffa solution," Center for Mathematical Economics Working Papers 425, Center for Mathematical Economics, Bielefeld University.
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    Cited by:

    1. Emily Tanimura & Sylvie Thoron, 2016. "How Best to Disagree in Order to Agree?," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-17, September.
    2. Trockel, Walter, 2014. "Robustness of intermediate agreements for the discrete Raiffa solution," Games and Economic Behavior, Elsevier, vol. 85(C), pages 32-36.

    More about this item

    Keywords

    Nashʼs bargaining problem; Robustness; Intermediate agreements; The Discrete Raiffa solution; The Nash solution; Proportional solutions;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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