Rationality of bargaining solutions
We analyze the rationality of two person bargaining solutions by considering conditions which are weaker than those used by Peters and Wakker (1991) or Bossert (1994). As a particular consequence of their results, the rationality of the Nash solution is obtained, although they can not be applied to other well known bargaining solutions. The aim of this paper is, on the one hand, lo prove that a choice function defined on the usual bargaining domain which satisfies Independence of Irrelevant Alternatives, Weak Pareto Optimality and Pareto Continuity is also rationalized by a preorder (reflexive, complete and transitive binary relation). Moreover, the representability of this relation is analyzed. These results can be applied, in particular, lo the Nash solution and moreover to the egalitarian (Kalai, 1977), monotone path solutions and their lexicographic extensions. On the other hand, and by substituting Pareto Continuity for Monotonicity assumptions, rationality IS al so analyzed. As a consequence, a result along the same lines as Bossert's (1994) is obtained.
|Date of creation:||Jul 1996|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA|
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:1996-09. 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: (Departamento de Edición)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.