Axiomatic Models of Bargaining

A. E. Roth

ISBN 10: 3540095403 / ISBN 13: 9783540095408

Editore: Springer-Verlag Berlin and Heidelberg GmbH and Co. KG, DE, 1979

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The problem to be considered here is the one faced by bargainers who must reach a consensus--i.e., a unanimous decision. Specifically, we will be consid­ ering n-person games in which there is a set of feasible alternatives, any one of which can be the outcome of bargaining if it is agreed to by all the bargainers. In the event that no unanimous agreement is reached, some pre-specified disagree­ ment outcome will be the result. Thus, in games of this type, each player has a veto over any alternative other than the disagreement outcome. There are several reasons for studying games of this type. First, many negotiating situations, particularly those involving only two bargainers (i.e., when n = 2), are conducted under essentially these rules. Also, bargaining games of this type often occur as components of more complex processes. In addi­ tion, the simplicity of bargaining games makes them an excellent vehicle for studying the effect of any assumptions which are made in their analysis. The effect of many of the assumptions which are made in the analysis of more complex cooperative games can more easily be discerned in studying bargaining games. The various models of bargaining considered here will be studied axioma- cally. That is, each model will be studied by specifying a set of properties which serve to characterize it uniquely.

Codice articolo LU-9783540095408

Dati bibliografici

• Titolo: Axiomatic Models of Bargaining
• Editore: Springer-Verlag Berlin and Heidelberg GmbH and Co. KG, DE
• Data di pubblicazione: 1979
• Lingua: Inglese
• ISBN 10: 3540095403
• ISBN 13: 9783540095408
• Rilegatura: Paperback
• Condizione: New

Descrizione articolo

Riassunto

The problem to be considered here is the one faced by bargainers who must reach a consensus--i.e., a unanimous decision. Specifically, we will be consid­ ering n-person games in which there is a set of feasible alternatives, any one of which can be the outcome of bargaining if it is agreed to by all the bargainers. In the event that no unanimous agreement is reached, some pre-specified disagree­ ment outcome will be the result. Thus, in games of this type, each player has a veto over any alternative other than the disagreement outcome. There are several reasons for studying games of this type. First, many negotiating situations, particularly those involving only two bargainers (i.e., when n = 2), are conducted under essentially these rules. Also, bargaining games of this type often occur as components of more complex processes. In addi­ tion, the simplicity of bargaining games makes them an excellent vehicle for studying the effect of any assumptions which are made in their analysis. The effect of many of the assumptions which are made in the analysis of more complex cooperative games can more easily be discerned in studying bargaining games. The various models of bargaining considered here will be studied axioma- cally. That is, each model will be studied by specifying a set of properties which serve to characterize it uniquely.

Contenuti

I: Nash’s Model of Bargaining.- Section A. Introduction.- Section B. The Formal Model and Axiomatic Derivation.- Nash’s Theorem.- Individual Rationality.- Symmetry and Asymmetry.- Section C. Probabilistic Models.- Bargaining as a Non-Cooperative Game.- Bargaining as a Single Player Decision Problem.- A Model of Negotiation.- Section D. Risk Posture.- Comparative Risk Aversion.- Boldness and Fear of Ruin.- Strategic Risk Posture and the Utility of Bargaining.- II: Other Models of Bargaining.- Section A. A Critical Evaluation of the Independence Properties.- Independence of Equivalent Utility Representations.- Independence of Irrelevant Alternatives.- Section B. Ordinal Models of Bargaining.- Section C. Interpersonal Models of Bargaining.- Proportional Solutions.- Ordinal Interpersonal Comparisons.- Section D. “Irrelevant” Alternatives.- An Individually Monotonic Solution.- Dependence on the Ideal Point.- Appendix: Summary of the Principal Properties and Results.