Efficiency and compromise: a bid-offer–counteroffer mechanism with two players
A bid-offer–counteroffer mechanism is proposed to solve a fundamental two-person decision choice problem with two alternatives. It yields a unique subgame perfect equilibrium outcome, and leads to an intuitive overall solution that offers a reconciliation between egalitarianism and utilitarianism. We then investigate the axiomatic foundation of the solution. Furthermore, we compare it with several conventional strategic approaches to this setting. Copyright Springer-Verlag 2013
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Volume (Year): 42 (2013)
Issue (Month): 2 (May)
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