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The area monotonic solution in dynamic negotiations

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  • Ferenc Szidarovszky

Abstract

The area monotonic solution is examined, when the utilities of the players as well as the Pareto frontier change in time. A divert method is introduced to characterize the change in the solution of the conflict which is based on deriving a special ordinary differential equation such that its trajectory follows the solution in time. This method can be used to determine the optimal timing of agreements.

Suggested Citation

  • Ferenc Szidarovszky, 2001. "The area monotonic solution in dynamic negotiations," Applied Economics Letters, Taylor & Francis Journals, vol. 8(9), pages 599-600.
    • Handle: RePEc:taf:apeclt:v:8:y:2001:i:9:p:599-600
    DOI: 10.1080/13504850010021145
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