IDEAS home Printed from
   My bibliography  Save this paper

Bargaining with Linked Disagreement Points


  • Justin Leroux
  • Walid Marrouch


In the context of bilateral bargaining,we deal with issue linkage by developing a two-issue-two-players cooperative bargaining model. The axioms we propose focus on the role of the disagreement points. A family of bargaining rule stands out: the monotonic equal net ratio solutions. These solutions point to Pareto efficient outcomes such that the relative gains for players are equal across issues and reward the players for improving their bargaining power over each issue. We discuss our results in light of international trade and environmental negotiations, which are often put on the bargaining table in a linked fashion. Dans un contexte de négociations bilatérales, nous adressons la question de l'inter-connexion des sujets de négociation dans un modèle coopératif à deux-sujets-deux-agents. Les axiomes que nous proposons insistent sur le rôle des points de menace. Une famille de solutions ressort de l'analyse : les solutions monotones à taux nets identiques. Chacune de ces solutions préconise une issue Pareto efficace de sorte que les gains relatifs de chaque agent sont les mêmes pour les deux sujets de négociation. De plus, ces règles récompensent les agents pour des améliorations de leurs pouvoirs de négociation. Nous discutons nos résultats à la lumière des négociations de commerce international et environnementales, qui sont souvent amenées à la table de négociations de manière liée.

Suggested Citation

  • Justin Leroux & Walid Marrouch, 2011. "Bargaining with Linked Disagreement Points," CIRANO Working Papers 2011s-30, CIRANO.
  • Handle: RePEc:cir:cirwor:2011s-30

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    More about this item


    Multi-issue bargaining; issue linkages; axiomatic solutions; disagree-ment point. ; Négociations Multi-sujets; inter-connexion des sujets; solutions axiomatiques; point de Menace.;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:cir:cirwor:2011s-30. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.