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A Concessions-Based Mechanism for Meta-Bargaining Problems

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  • Marco-Gil, Maria del Carmen

    () (Universidad Politécnica de Cartagena, Department of Economics)

  • Peris, Josep E.

    () (Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica)

  • Subiza, Begoña

    () (Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica)

Abstract

In 1950, Nash's seminal paper introduced the axiomatic approach to the analysis of bargaining situations. Since then, many bargaining solutions have appeared and been axiomatically analyzed. The fact that agents, when face a bargaining problem, can come up with different solution concepts (that is, di§erent notions of fairness and equity) was first introduced by van Damme (1986) by means of the meta-bargaining model. In this paper we present and axiomatically analyze a mechanism for solving meta-bargaining problems, which we call Unanimous-Concession. As an example, we show that the Nash solution is the result of the meta-bargaining process we define, when agents have dual egalitarian criteria. Finally, we compare, from an axiomatic and descriptive point of view, our proposal with other meta-bargaining mechanisms.

Suggested Citation

  • Marco-Gil, Maria del Carmen & Peris, Josep E. & Subiza, Begoña, 2012. "A Concessions-Based Mechanism for Meta-Bargaining Problems," QM&ET Working Papers 12-13, University of Alicante, D. Quantitative Methods and Economic Theory.
  • Handle: RePEc:ris:qmetal:2012_013
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    References listed on IDEAS

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    1. Herrero, Carmen & Marco, Maria Carmen, 1993. "Rational equal-loss solutions for bargaining problems," Mathematical Social Sciences, Elsevier, vol. 26(3), pages 273-286, November.
    2. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    3. Chun, Youngsub & Thomson, William, 1992. "Bargaining problems with claims," Mathematical Social Sciences, Elsevier, vol. 24(1), pages 19-33, August.
    4. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    5. Anbarci, Nejat & Yi, Gyoseob, 1992. "A meta-allocation mechanism in cooperative bargaining," Economics Letters, Elsevier, vol. 38(2), pages 175-179, February.
    6. Myerson, Roger B, 1977. "Two-Person Bargaining Problems and Comparable Utility," Econometrica, Econometric Society, vol. 45(7), pages 1631-1637, October.
    7. Roth, Alvin E & Murnighan, J Keith, 1982. "The Role of Information in Bargaining: An Experimental Study," Econometrica, Econometric Society, vol. 50(5), pages 1123-1142, September.
    8. Eric van Damme, 1984. "The Nash Bargaining Solution is Optimal," Discussion Papers 597, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. Walter Trockel, 2002. "A universal meta bargaining implementation of the Nash solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(3), pages 581-586.
    10. Damme, Eric van, 1986. "The Nash bargaining solution is optimal," Journal of Economic Theory, Elsevier, vol. 38(1), pages 78-100, February.
    11. Naeve-Steinweg, E., 2004. "The averaging mechanism," Games and Economic Behavior, Elsevier, vol. 46(2), pages 410-424, February.
    12. Josep Enric Peris Ferrando & Begoña Subiza & María del Carmen Marco, 1995. "A Mechanism For Meta-Bargaining Problems," Working Papers. Serie AD 1995-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    Cited by:

    1. José-Manuel Giménez-Gómez & António Osório & Josep E. Peris, 2016. "Bankruptcy problems with two references: an impartial compromise," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 24(1), pages 131-142, April.

    More about this item

    Keywords

    bargaining problem; mechanism; meta-bargaining; axiomatic approach;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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