Shapley’s impossibility result indicates that the two-person bargaining problem has no non-trivial ordinal solution with the traditional game-theoretic bargaining model. Although the result is no longer true for bargaining problems with more than two agents, none of the well known bargaining solutions are ordinal. Searching for meaningful ordinal solutions, especially for the bilateral bargaini...

The platform—a business model that creates value by connecting groups of users—is increasingly popular in many industries. Extant papers largely assume that platforms dominate the pricing decision, whereas in practice, prices in business-to-business transactions are often determined by a bargaining process. We study how the relative bargaining power of business partners affects pricing and comp...

Experiments with the ultimatum game—where one party can make a take-it-or-leave-it offer to a second party on how to split a pie—illustrate that conventional game theory has been wrong in its predictions regarding the simplest of bargaining settings: Even when one party has enormous bargaining power, she may be able to extract all the surplus from trade, because the second party will reject gro...

This paper presents a logical extension of Nash’s Cooperative Bargaining Theory. We introduce a concept of entrenchment measurement, which maps propositions to real numbers, as a vehicle to represent agent’s belief states and attitudes towards bargaining situations. We show that Nash’s bargaining solution can be restated in terms of bargainers belief states. Negotiable items, bargaining outcome...

In this paper, we employ a uni…ed approach to Nash’s two-person bargaining problem by using a class of axioms, which we term Common Disagreement Point (CDP) axioms. These axioms describe under what circumstances parties that expect to face sometimes uncertain nested or non-nested bargaining sets can reach interim outcomes. By doing so, these axioms portray a bargaining process, and thereby brid...

of governments, employers, and unions regarding the organization of wage bargaining. European Monetary Union involves a decentralization of wage bargaining (centered at the national level) in relation to monetary policy (centralized at the European level). Drawing on recent literature and on the experience of two member states (Italy and Spain), which, prior to EMU, underwent periods of intense...

An uncovered bargaining solution is a bargaining solution for which there exists a complete and strict relation (tournament) such that, for each feasible set, the bargaining solution set coincides with the uncovered set of the tournament. We provide a characterization of a class of uncovered bargaining solutions. J.E.L. codes: C72, D44.

The Choice of the Agenda in Labor Negotiations: Efficiency and Behavioral Considerations The labor economics literature has shown that the “efficient bargaining” model, in which wage and employment are negotiated simultaneously, is less frequently used on unionized markets than the less efficient “right-to-manage” model, in which wage is determined via bargaining and employment determined subse...

In this paper, we introduce axiomatic and strategic models for bargaining and investigate the link between the two. Bargaining situations are described in propositional logic while the agents’ preferences over the outcomes are expressed as ordinal preferences. Our main contribution is an axiomatic theory of bargaining. We propose a bargaining solution based on the well-known egalitarian social ...

We comment on non-cooperative and cooperate approaches to distributive (divide-the-cake) bargaining. We first review the challenges addressed by the seminal literature on two-person bargaining and threeperson bargaining. We then explore more recent developments on dynamic multi-player bargaining over distributive policies, both over a single decision, and over an infinite sequence of decisions ...