Asymmetric Nash Bargaining with Surprised Players

Hanany Eran and Gal Rotem
Additional contact information
Hanany Eran: Tel Aviv University, hananye@post.tau.ac.il
Gal Rotem: Tel Aviv University, galrotem@zahav.net.il

The B.E. Journal of Theoretical Economics, 2007, vol. 7, issue 1, 18

Abstract: This paper introduces two-player bargaining problems allowing for asymmetric subjective uncertainty about factors that determine whether agreement is achieved, focusing on surprising events, i.e. events believed possible by only one player. A `subjective Nash' solution is proposed, in which a bargaining outcome is defined as immune to all possible appeals given the subjective uncertainty of disagreement. In addition to Pareto optimality and independence of irrelevant alternatives, the main axiom in the solution characterization is `subjective symmetry'. The solution is shown to be equivalent to a specific, non-symmetric, Nash solution, with preference dependent weights that equal the subjective probability players assign to the intersection of their belief supports.

Keywords: axiomatic bargaining; subjective probability (search for similar items in EconPapers)
Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2202/1935-1704.1355 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:bejtec:v:7:y:2007:i:1:n:29

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejte/html

DOI: 10.2202/1935-1704.1355

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().