On Iterated Nash Bargaining Solutions

Cheng-Zhong QIN, Guofu TAN*, Adam C. L. WONG

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

Abstract

This paper introduces a family of domains of bargaining problems allowing for non-convexity. For each domain in this family, single-valued bargaining solutions satisfying the Nash axioms are explicitly characterized as solutions of the iterated maximization of Nash products weighted by the row vectors of the associated bargaining weight matrices. This paper also introduces a simple procedure to standardize bargaining weight matrices for each solution into an equivalent triangular bargaining weight matrix, which is simplified and easy to use for applications. Furthermore, the standardized bargaining weight matrix can be recovered from bargaining solutions of simple problems. This recovering result provides an empirical framework for determining the bargaining weights.
Original languageEnglish
Pages (from-to)697-721
JournalB.E. Journal of Theoretical Economics
Volume23
Issue number2
Early online date6 Feb 2023
DOIs
Publication statusPublished - Jun 2023

Bibliographical note

We are grateful for comments from Youngsub Chun, Pradeep Dubey, Mamoru Kaneko, Abraham Neyman, Hans Peters, Yair Tauman, Shmuel Zamir, Yongsheng Xu, Junjie Zhou, an anonymous referee, and seminar participants at a number of universities and conferences.

Publisher Copyright:
© 2023 Walter de Gruyter GmbH, Berlin/Boston 2023.

Keywords

  • bargaining problem
  • non-convexity
  • Nash product
  • iterated solution
  • weight matrix

Cite this