Rationality and Solutions to Nonconvex Bargaining Problems: Rationalizability and Nash Solutions
Conditions α and β are two well-known rationality conditions in the theory of rational choice. This paper examines the implications of weaker versions of these two rationality conditions in the context of solutions to nonconvex bargaining problems. It is shown that, together with the standard axioms of efficiency and strict individual rationality, they imply rationalizability of solutions to nonconvex bargaining problems. We then characterize asymmetric Nash solutions by imposing a continuity and the scale invariance requirements. These results make a further connection between solutions to non-convex bargaining problems and rationalizability of choice function in the theory of rational choice.
|Date of creation:||Nov 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ier.hit-u.ac.jp/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomson, William, 1981. "A class of solutions to bargaining problems," Journal of Economic Theory, Elsevier, vol. 25(3), pages 431-441, December.
- Bossert, Walter, 1994. "Rational choice and two-person bargaining solutions," Journal of Mathematical Economics, Elsevier, vol. 23(6), pages 549-563, November.
- Sen, Amartya K, 1977. "Social Choice Theory: A Re-examination," Econometrica, Econometric Society, vol. 45(1), pages 53-89, January.
- Michele Lombardi & Marco Mariotti, 2009.
"Uncovered bargaining solutions,"
International Journal of Game Theory,
Springer, vol. 38(4), pages 601-610, November.
- Vincenzo Denicolò & Marco Mariotti, 2000. "Nash Bargaining Theory, Nonconvex Problems and Social Welfare Orderings," Theory and Decision, Springer, vol. 48(4), pages 351-358, June.
- Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
- Herzberger, Hans G, 1973. "Ordinal Preference and Rational Choice," Econometrica, Econometric Society, vol. 41(2), pages 187-237, March.
- Peters Hans & Vermeulen Dries, 2006. "WPO, COV and IIA bargaining solutions," Research Memorandum 021, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Sen, Amartya K, 1971. "Choice Functions and Revealed Preference," Review of Economic Studies, Wiley Blackwell, vol. 38(115), pages 307-17, July.
- Marco Mariotti, 1998.
"Fair Bargains: Distributive Justice and Nash Bargaining Theory,"
Royal Holloway, University of London: Discussion Papers in Economics
98/16, Department of Economics, Royal Holloway University of London, revised Feb 1998.
- Mariotti, Marco, 1999. "Fair Bargains: Distributive Justice and Nash Bargaining Theory," Review of Economic Studies, Wiley Blackwell, vol. 66(3), pages 733-41, July.
- Lin Zhou, 1997. "The Nash Bargaining Theory with Non-Convex Problems," Econometrica, Econometric Society, vol. 65(3), pages 681-686, May.
- Marco Mariotti, 1998. "Nash bargaining theory when the number of alternatives can be finite," Social Choice and Welfare, Springer, vol. 15(3), pages 413-421.
- Xu, Yongsheng & Yoshihara, Naoki, 2006. "Alternative characterizations of three bargaining solutions for nonconvex problems," Games and Economic Behavior, Elsevier, vol. 57(1), pages 86-92, October.
- John A. Weymark & Kai-yuen Tsui, 1997. "Social welfare orderings for ratio-scale measurable utilities," Economic Theory, Springer, vol. 10(2), pages 241-256.
- Yongsheng Xu, 2002. "Functioning, capability and the standard of living - an axiomatic approach," Economic Theory, Springer, vol. 20(2), pages 387-399.
- Mariotti, Marco, 1998. "Extending Nash's Axioms to Nonconvex Problems," Games and Economic Behavior, Elsevier, vol. 22(2), pages 377-383, February.
When requesting a correction, please mention this item's handle: RePEc:hit:hituec:580. 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: (Hiromichi Miyake)
If references are entirely missing, you can add them using this form.