A monotone solution to the problem of 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. Each player receives a weighted average of her contributions to each coalition's claim, where a coalition's claim is determined by its best allocation in the bargaining set. The key axioms are additivity and a property we call marginal monotonicity, which states that increasing a player's payoff in an allocation of the bargaining set, either outright or by means of transfers from other players, must benefit that player.

Date: 2025-01, Revised 2025-06
New Economics Papers: this item is included in nep-gth and nep-mic
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