IDEAS home Printed from https://ideas.repec.org/a/now/jnlsbe/102.00000019.html
   My bibliography  Save this article

Bargaining with Linked Disagreement Points

Author

Listed:
  • Leroux, Justin
  • Marrouch, Walid

Abstract

In the context of bilateral bargaining, we deal with issue linkage by developing a two-issue cooperative bargaining model. In contrast to the traditional Nash bargaining literature, the axioms we propose focus on the role of the disagreement points. We characterize a new solution that we call the Linked Disagreement Points (LDP) solution, which explicitly links the players' bargaining powers on each issue. We then weaken our axioms in turn, and a family of bargaining rules stands out: the Equal Net Ratio Solutions . These solutions point to Pareto-efficient outcomes such that the relative gains for players are equal across issues. We discuss our results in light of international trade and environmental negotiations, which are often put on the bargaining table in a linked fashion.

Suggested Citation

  • Leroux, Justin & Marrouch, Walid, 2012. "Bargaining with Linked Disagreement Points," Strategic Behavior and the Environment, now publishers, vol. 2(3), pages 259-277, September.
  • Handle: RePEc:now:jnlsbe:102.00000019
    DOI: 10.1561/102.00000019
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/102.00000019
    Download Restriction: no

    File URL: https://libkey.io/10.1561/102.00000019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    Axiomatic bargaining; Multiple issues; Issue linkage; Disagreement points;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:jnlsbe:102.00000019. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.