Bargaining with transfers

Gregorio Curello and Sam Jindani

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Abstract: We propose a solution to the problem of bargaining with transfers, along with an axiomatisation of the solution. Inefficient allocations in the bargaining set can influence the solution, but are discounted relative to more efficient ones. The key axioms are additivity and a property we call \emph{inverse monotonicity}, which states that adding an allocation to the bargaining set that is worse for a given player than the initial solution cannot benefit that player.

Date: 2025-01
New Economics Papers: this item is included in nep-gth and nep-mic
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