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An axiomatization of the sequential Raiffa solution


  • Trockel, Walter

    (Center for Mathematical Economics, Bielefeld University)


This paper provides four axioms that uniquely characterize the sequential Raiffa solution proposed by Raiffa (1951, 1953) for two-person bargaining games. Three of these axioms are standard and are shared by several popular bargaining solutions. They suffice to characterize these solutions on TU-bargaining games where they coincide. The fourth axiom is a weakening of Kalai's (1977) axiom of step-by-step negotiating and turns out to be sort of a dual condition to a weaker version of Nash's IIA-axiom that together with the three standard axioms suffices to characterize the Nash bargaining solution due to Nash (1950). A conclusion of this axiomatization is that in contrast to all other known bargaining solutions the sequential Raiffa solution does not represent just another kind of fairness or equity condition in addition to the three standard axioms but rather is determined by indefinite repeated application of the three standard axioms.

Suggested Citation

  • Trockel, Walter, 2011. "An axiomatization of the sequential Raiffa solution," Center for Mathematical Economics Working Papers 425, Center for Mathematical Economics, Bielefeld University.
  • Handle: RePEc:bie:wpaper:425

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    References listed on IDEAS

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    2. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, August.
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    5. Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 319-349, October.
    6. Gabrielle Demange & Wooders Myrna, 2005. "Group Formation in Economics: Networks, Clubs and Coalitions," Post-Print halshs-00576778, HAL.
    7. Subhadip Chakrabarti & Robert Gilles, 2007. "Network potentials," Review of Economic Design, Springer;Society for Economic Design, vol. 11(1), pages 13-52, June.
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    Cited by:

    1. Eric Guerci & Sylvie Thoron, 2011. "Experimental comparison of compulsory and non compulsory arbitration mechanisms," Working Papers halshs-00584328, HAL.
    2. Trockel, Walter, 2011. "An exact non-cooperative support for the sequential Raiffa solution," Journal of Mathematical Economics, Elsevier, vol. 47(1), pages 77-83, January.
    3. Trockel, Walter, 2014. "Robustness of intermediate agreements for the discrete Raiffa solution," Games and Economic Behavior, Elsevier, vol. 85(C), pages 32-36.
    4. repec:spr:decfin:v:40:y:2017:i:1:d:10.1007_s10203-017-0203-y is not listed on IDEAS
    5. Anbarci, Nejat & Sun, Ching-jen, 2013. "Robustness of intermediate agreements and bargaining solutions," Games and Economic Behavior, Elsevier, vol. 77(1), pages 367-376.
    6. Ismail Saglam, 2017. "Iterated Kalai–Smorodinsky–Nash compromise," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 40(1), pages 335-349, November.
    7. repec:spr:etbull:v:3:y:2015:i:1:d:10.1007_s40505-014-0046-4 is not listed on IDEAS
    8. Haake, Claus-Jochen, 2016. "Dividing by Demanding: Object Division through Market Procedures," Center for Mathematical Economics Working Papers 359, Center for Mathematical Economics, Bielefeld University.
    9. Haruo Imai & Hannu Salonen, 2012. "A characterization of a limit solution for finite horizon bargaining problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(3), pages 603-622, August.

    More about this item


    Nash solution; Axiomatization; Raiffa solution; Bargaining games;

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