Nash's Bargaining Formula Revisited

Gander James ()
Additional contact information
Gander James: University of Utah – Economics, 260 S. Central Campus Dr., OSH 343, Salt Lake City, Utah 84112, United States

Mathematical Economics Letters, 2014, vol. 2, issue 1-2, 1-3

Abstract: The note consists of showing the marginal rates of substitution (MRS) explicitly in Nash's product formula and contract curve given by the Jacobian determinant, which otherwise are contained therein only implicitly. Two simple examples from duopoly and bilateral monopoly are used to show the MRS's explicitly in the mathematical structure of the bargaining game. We learn from the note that, while the MRS's are implicit in the mathematical structure of the game, the MRS's after suitable transformation can be shown explicitly in the product formula and contract curve. This MRS showing puts the structure of the game in a context familiar to economists.

Keywords: Bargaining; Pareto Optimum; Jacobian; Contract Curve; Bargaining; Pareto Optimum; Jacobian; Contract Curve (search for similar items in EconPapers)
JEL-codes: C65 C71 C78 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/mel-2013-0016 (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:maecol:v:2:y:2014:i:1-2:p:3:n:3

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

DOI: 10.1515/mel-2013-0016

Access Statistics for this article

Mathematical Economics Letters is currently edited by Moawia Algalith

More articles in Mathematical Economics Letters from De Gruyter
Bibliographic data for series maintained by Peter Golla ().