IDEAS home Printed from https://ideas.repec.org/a/kap/theord/v95y2023i3d10.1007_s11238-023-09930-2.html
   My bibliography  Save this article

The Nash bargaining solution: sometimes more utilitarian, sometimes more egalitarian

Author

Listed:
  • Shiran Rachmilevitch

    (University of Haifa, Mount Carmel)

Abstract

The first-order condition of the Nash bargaining solution equates the ratio of utilities to the ratio of marginal utilities. It turns out that this common ratio plays a role in determining whether the Nash solution, roughly speaking, is “more utilitarian” or “more egalitarian.” More specifically, I propose a sense of proximity to utilitarianism and/or egalitarianism according to which, in bargaining problems with distinct utilitarian and egalitarian points, the Nash solution is closer to utilitarianism if the aforementioned ratio is smaller than one, and closer to egalitarianism if that ratio is greater than one.

Suggested Citation

  • Shiran Rachmilevitch, 2023. "The Nash bargaining solution: sometimes more utilitarian, sometimes more egalitarian," Theory and Decision, Springer, vol. 95(3), pages 457-464, October.
    • Handle: RePEc:kap:theord:v:95:y:2023:i:3:d:10.1007_s11238-023-09930-2
    DOI: 10.1007/s11238-023-09930-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11238-023-09930-2
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11238-023-09930-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Amrita Dhillon & Jean-Francois Mertens, 1999. "Relative Utilitarianism," Econometrica, Econometric Society, vol. 67(3), pages 471-498, May.
    2. Sobel, Joel, 2001. "Manipulation of Preferences and Relative Utilitarianism," Games and Economic Behavior, Elsevier, vol. 37(1), pages 196-215, October.
    3. Shiran Rachmilevitch, 2015. "The Nash solution is more utilitarian than egalitarian," Theory and Decision, Springer, vol. 79(3), pages 463-478, November.
    4. Kalai, Ehud, 1977. "Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, Econometric Society, vol. 45(7), pages 1623-1630, October.
    5. Marcus Pivato, 2009. "Twofold optimality of the relative utilitarian bargaining solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 79-92, January.
    6. Uzi Segal, 2000. "Let's Agree That All Dictatorships Are Equally Bad," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 569-589, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shiran Rachmilevitch, 2016. "Egalitarian–utilitarian bounds in Nash’s bargaining problem," Theory and Decision, Springer, vol. 80(3), pages 427-442, March.
    2. Omer F. Baris, 2018. "Timing effect in bargaining and ex ante efficiency of the relative utilitarian solution," Theory and Decision, Springer, vol. 84(4), pages 547-556, June.
    3. Claus-Jochen Haake & Cheng-Zhong Qin, 2018. "On unification of solutions to the bargaining problem," Working Papers CIE 113, Paderborn University, CIE Center for International Economics.
    4. Shiran Rachmilevitch, 2015. "The Nash solution is more utilitarian than egalitarian," Theory and Decision, Springer, vol. 79(3), pages 463-478, November.
    5. Marcus Pivato, 2009. "Twofold optimality of the relative utilitarian bargaining solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(1), pages 79-92, January.
    6. 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.
    7. Miyagawa, Eiichi, 2002. "Subgame-perfect implementation of bargaining solutions," Games and Economic Behavior, Elsevier, vol. 41(2), pages 292-308, November.
    8. Chatterjee, Indradeb & Macdonald, Angus S. & Tapadar, Pradip & Thomas, R. Guy, 2021. "When is utilitarian welfare higher under insurance risk pooling?," Insurance: Mathematics and Economics, Elsevier, vol. 101(PB), pages 289-301.
    9. Barry Nalebuff, 2021. "A Perspective-Invariant Approach to Nash Bargaining," Management Science, INFORMS, vol. 67(1), pages 577-593, January.
    10. Juan Moreno-Ternero & John E. Roemer, 2004. "Impartiality and Priority. Part 1: The Veil of Ignorance," Cowles Foundation Discussion Papers 1477A, Cowles Foundation for Research in Economics, Yale University, revised May 2005.
    11. Segal, Uzi & Sobel, Joel, 2002. "Min, Max, and Sum," Journal of Economic Theory, Elsevier, vol. 106(1), pages 126-150, September.
    12. Attila Ambrus & Kareen Rozen, 2015. "Rationalising Choice with Multi‐self Models," Economic Journal, Royal Economic Society, vol. 125(585), pages 1136-1156, June.
    13. Giraud, Gaël & Renouard, Cécile, 2011. "Is the Veil of Ignorance Transparent?," OEconomia, Editions NecPlus, vol. 2011(02), pages 239-258, June.
    14. Shiran Rachmilevitch, 2022. "Pre-bargaining Investment Implies a Pareto Ranking of Bargaining Solutions," Group Decision and Negotiation, Springer, vol. 31(4), pages 769-787, August.
    15. Hwang, Sung-Ha & Lim, Wooyoung & Neary, Philip & Newton, Jonathan, 2018. "Conventional contracts, intentional behavior and logit choice: Equality without symmetry," Games and Economic Behavior, Elsevier, vol. 110(C), pages 273-294.
    16. Thibault Gajdos & Feriel Kandil, 2008. "The ignorant observer," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(2), pages 193-232, August.
    17. Shiran Rachmilevitch, 2019. "Egalitarianism, utilitarianism, and the Nash bargaining solution," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(4), pages 741-751, April.
    18. Florian Brandl, 2020. "Belief-Averaged Relative Utilitarianism," Papers 2005.03693, arXiv.org, revised Aug 2021.
    19. Sprumont, Yves, 2018. "Belief-weighted Nash aggregation of Savage preferences," Journal of Economic Theory, Elsevier, vol. 178(C), pages 222-245.
    20. Emin Karagözoğlu & Kerim Keskin, 2015. "A Tale of Two Bargaining Solutions," Games, MDPI, vol. 6(2), pages 1-14, June.

    Corrections

    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:kap:theord:v:95:y:2023:i:3:d:10.1007_s11238-023-09930-2. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.