Gradual Negotiations and Proportional Solutions

Shiran Rachmilevitch

No WP2011/8, Working Papers from University of Haifa, Department of Economics

Abstract: I characterize the proportional N-person bargaining solutions by individual rationality, translation invariance, feasible set continuity, and a new axiom - interim improvement. The latter says that if the disagreement point d is known, but the feasible set is not - it may be either S or T, where S is a subset of T - then there exists a point d' in S, d' > d, such that replacing d with d' as the disagreement point would not change the final bargaining outcome, no matter which feasible set will be realized, S or T. In words, if there is uncertainty regarding a possible expansion of the feasible set, the players can wait until it is resolved; in the meantime, they can find a Pareto improving interim outcome to commit to - a commitment that has no effect in case negotiations succeed, but promises higher disagreement payoffs to all in case negotiations fail prior to the resolution of uncertainty.

Keywords: Bargaining; Proportional solutions (search for similar items in EconPapers)
JEL-codes: C78 D74 (search for similar items in EconPapers)
Pages: 18
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hevra.haifa.ac.il/econ/wp_files/wp201108.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:haf:huedwp:wp201108

Access Statistics for this paper

More papers in Working Papers from University of Haifa, Department of Economics 199 Aba Khoushy Ave., Mount Carmel, Haifa, Israel, 3498838. Contact information at EDIRC.
Bibliographic data for series maintained by Anna Rubinchik ().