- THE NASH BARGAINING SOLUTION UNDER FIXED LABOR SUPPLY

Mª Cristina Pita Yañez () and Ramon Torregrosa
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Mª Cristina Pita Yañez: Universidad de Salamanca

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: Since 1950 Nash solution has been applied to solve most bargaining problems in the field of Labor Economics. In the present paper we show that this solution might not be appropriateunder uncertainty over the state of nature and a fixed labor supply due to the non-fulfilment of the concavity axiom. Desde 1950 la solución propuesta por Nash ha sido aplicada mecánicamente en la mayor parte de los problemas de negociación que se plantean en Economía Laboral. En este trabajo demostramos que la solución de Nash no debe utilizarse en aquellas situaciones en las que existe un número de trabajadores fijo e incertidumbre sobre el estado de la naturaleza debido al incumplimiento del, frecuentemente ignorado, axioma de concavidad.

Keywords: Nash bargaining solution; uncertainty Nash bargaining solution; uncertainty. (search for similar items in EconPapers)
JEL-codes: J50 (search for similar items in EconPapers)
Pages: 17 pages
Date: 1999-03
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:1999-05

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