A solution for two-person bargaining problems

✍ Scribed by H. Salonen

• Publisher: Springer
• Year: 1985
• Tongue: English
• Weight: 486 KB
• Volume: 2
• Category: Article
• ISSN: 0176-1714
• DOI: 10.1007/bf00437314

✦ Synopsis

Everyday bargaining problems are often solved by tossing a coin. A solution for two-person bargaining problems is axiomatized, which is a Paretooptimal generalization of this coin tossing method. The super-additive solution of Perles and Maschler is also shown to be a generalization of this method. Various properties of our solution are studied, including continuity and risk sensitivity, and compared with properties of other solutions discussed in the literature.

* This study was financed by the Yrj6 Jahnsson Foundation, which is gratefully acknowledged. I like to thank an anonymous referee for useful comments.