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International Journal of Game Theory
Article . 1986 . Peer-reviewed
License: Springer TDM
Data sources: Crossref
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
zbMATH Open
Article . 1986
Data sources: zbMATH Open
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Replication invariance of bargaining solutions

Authors: Thomson, W.;

Replication invariance of bargaining solutions

Abstract

The author considers a bargaining problem, i.e. a problem of choosing a single output from the set S of possible outputs. An output is characterized by a sequence \(x_ 1,...,x_ n\) of utilities obtained by each of the n players. Without any loss of generality we can assume that a status quo point is \(x_ i=0\). The famous Nash solution consists in choosing an output with \(\prod x_ i\to \max\). One of the drawbacks of the Nash solution was revealed by Kalai, who noted that if we use the Nash solution then a player can often obtain more if he ficticiously subdivides his interests between two formally independent agents (this procedure is called replication). Kalai suggested a new solution, where the output for the i-th player is proportional to max \(x_ i\), where the maximum is taken over the whole set S, and showed that this solution is replication invariant. The author of the paper under review shows that Kalai's formalization of the notion ''replication'' is adequate only for state-controlled economies because of too many restrictions on the agents' behaviour otherwise. In case we use a more natural formalization of this notion, namely a formalization in which \(x_ i\) in the original game can be arbitrarily subdivided between agents of the i-th player, then Kalai's solution is not replication invariant. Several analogies between the Nash and Kalai solutions are proved.

Related Organizations
Keywords

Kalai solutions, Kalai-Smorodinsky solutions, replication, Cooperative games, fictituous subdivision, bargaining, Nash solution, state-controlled economies

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
7
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