The Nash solution is more utilitarian than egalitarian

Shiran Rachmilevitch

Theory and Decision, 2015, vol. 79, issue 3, 463-478

Abstract: I state and prove formal versions of the claim that the Nash (Econometrica 18: 155–162, 1950 ) bargaining solution creates a compromise between egalitarianism and utilitarianism, but that this compromise is “biased”: the Nash solution puts more emphasis on utilitarianism than it puts on egalitarianism. I also extend the bargaining model by assuming that utility can be transferred between the players at some cost (the transferable and non-transferable utility models are polar cases of this more general one, corresponding to the cases where the transfer cost is zero and infinity, respectively); I use the extended model to better understand the connections between egalitarianism and utilitarianism. Copyright Springer Science+Business Media New York 2015

Keywords: Bargaining; Egalitarianism; Nash solution; Utilitarianism (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11238-014-9477-5 (text/html)
Access to full text is restricted to subscribers.

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:kap:theord:v:79:y:2015:i:3:p:463-478

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11238/PS2

DOI: 10.1007/s11238-014-9477-5

Access Statistics for this article

Theory and Decision is currently edited by Mohammed Abdellaoui

More articles in Theory and Decision from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().