publication . Preprint

Fairness in Bargaining and the Kalai-Smorodinsky Solution

Rachmilevitch, Shiran;
Open Access
Abstract
A bargaining solution guarantees minimal equity if each player's payoff is at least as large as the minimum of the payoffs assigned to him by the equal-gain (i.e., egalitarian) and equal-loss solutions. The Kalai-Smorodinsky solution is the unique scale-invariant 2-person solution with this property. There does not exist a scale-invariant n-person solution with this property.
Subjects
arXiv: Computer Science::Computer Science and Game TheoryPhysics::Physics and Society
free text keywords: Bargaining; fairness; Kalai-Smorodinsky solution, jel:D63, jel:D71

[1] Chun, Y., (1988), \The equal-loss principle for bargaining problems," Economic Letters, 26, 103-106.

[2] Kalai, E., and Smorodinsky, M. (1975), \Other solutions to Nash's bargaining problem," Econometrica, 43, 513-518. [OpenAIRE]

[3] Kalai, E. (1977), \Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons," Econometrica, 45, 1623-1630. [OpenAIRE]

[4] Nash, J.F, (1950),\The Bargaining Problem," Econometrica, 18, 155-162.

Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue