Two-Stage Bargaining Solutions
21 Pages Posted: 18 Aug 2006 Last revised: 23 Jan 2009
Date Written: January 21, 2008
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: Suggested Citation