Rubinstein Safra and Thomson (1992) introduced the Ordinal Nash Bargaining Solution. They proved that Pareto Optimality, Ordinal Invariance, Ordinal Symmetry, and IIA characterize this solution. They restrict attention to a domain of social choice problem with an infinite set of basic...

We develop a model in which firms set their salary levels before matching with workers. Wages fall relative to any competitive equilibrium while profits rise almost as much, implying little inefficiency. Furthermore, the best firms gain the most from the system while wages become compressed. We...