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Bargaining with endogenous disagreement: the extended Kalai-Smorodinsky solution

Author

Listed:
  • Bozbay, I.

    (Quantitative Economics)

  • Dietrich, F.K.

    (Quantitative Economics)

  • Peters, H.J.M.

    (Quantitative Economics)

Abstract

Following Vartiainen (2007) we consider bargaining problems in which no exogenous disagreement outcome is given. A bargaining solution assigns a pair of outcomes to such a problem, namely a compromise outcome and a disagreement outcome: the disagreement outcome may serve as a reference point for the compromise outcome, but other interpretations are given as well. For this framework we propose and study an extension of the classical Kalai-Smorodinsky bargaining solution. We identify the (large) domain on which this solution is single-valued, and present two axiomatic characterizations on subsets of this domain.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bozbay, I. & Dietrich, F.K. & Peters, H.J.M., 2010. "Bargaining with endogenous disagreement: the extended Kalai-Smorodinsky solution," Research Memorandum 008, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  • Handle: RePEc:unm:umamet:2010008
    DOI: 10.26481/umamet.2010008
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    Cited by:

    1. is not listed on IDEAS
    2. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.
    3. Khan, Abhimanyu, 2022. "Expected utility versus cumulative prospect theory in an evolutionary model of bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 137(C).
    4. Rachmilevitch, Shiran, 2025. "A coco theory for cooperative bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    5. Llorente-Saguer, Aniol & Zultan, Ro’i, 2017. "Collusion and information revelation in auctions," European Economic Review, Elsevier, vol. 95(C), pages 84-102.
    6. Rudy Henkel, 2021. "Multiself Bargaining," Studies in Microeconomics, , vol. 9(1), pages 28-65, June.
    7. Emin Karagözoğlu & Kerim Keskin, 2018. "Endogenous reference points in bargaining," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 88(2), pages 283-295, October.

    More about this item

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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