Two-Stage Bargaining Solutions

21 Pages Posted: 18 Aug 2006 Last revised: 23 Jan 2009

See all articles by Paola Manzini

Paola Manzini

University of St. Andrews - School of Economics and Finance; Institute for the Study of Labor (IZA)

Marco Mariotti

University of London - School of Economics and Finance

Date Written: January 21, 2008

Abstract

We introduce and characterize a new class of bargaining solutions: those which can be obtained by sequentially applying two binary relations to eliminate alternatives. As a by-product we obtain as a particular case a partial characterization result by Zhou (Econometrica, 1997) of an extension of the Nash axioms and solution to domains including non-convex problems, as well as a complete characterizations of solutions that satisfy Pareto optimality, Covariance with positive affine transformations, and Independence of irrelevant alternatives.

Keywords: Bargaining, Non-convex problems, Nash bargaining solution

JEL Classification: C72, D44

Suggested Citation

Manzini, Paola and Mariotti, Marco, Two-Stage Bargaining Solutions (January 21, 2008). Available at SSRN: https://ssrn.com/abstract=924738 or http://dx.doi.org/10.2139/ssrn.924738

Paola Manzini

University of St. Andrews - School of Economics and Finance ( email )

North St
Saint Andrews, Fife KY16 9AJ
United Kingdom

HOME PAGE: http://www.st-andrews.ac.uk/~pm210/

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

Marco Mariotti (Contact Author)

University of London - School of Economics and Finance ( email )

Mile End Road
London, E1 4NS
United Kingdom

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