In the context of bilateral bargaining,we deal with issue linkage by developing a two-issue-two-players cooperative bargaining model. The axioms we propose focus on the role of the disagreement points. A family of bargaining rule stands out: the monotonic equal net ratio solutions. These...

In the present work, agreement on allocation of payments from multiple issues requires unanimous consent of all parties involved. The agents are assumed to know the aggregate payoffs but do not know their decomposition by issues. This framework applies to many real-world problems, such as the...

This article determines the conditions under which the Southern countries should act together, or separately, while negotiating with the North about climate change policy and about the conditions for future Southern engagement. The paper models the international negotiations with complete and...

In this article, we use a stylized model of the labor market to investigate the effects of three alternative and well-known bargaining solutions. We apply the Nash, the Egalitarian and the Kalai-Smorodinsky bargaining solutions in the small firm's matching model of unemployment. To the best of...

This paper models the instability of peace agreements, motivated by the empirical regularity with which peace agreements tend to break down following civil war. When war provides opportunities for profit to one side, or when other difficulties such as historical grievances exist, peace may...

This paper studies a decentralized, dynamic matching and bargaining market: buyers and sellers are matched into pairs. Traders exit the market at a constant rate, inducing search costs (frictions). All price offers are made by sellers. Despite the fact that sellers have all the bargaining power...

We discuss a model, in which two agents may distribute finitely many objects among themselves. The conflict is resolved by means of a market procedure. Depending on the specifications, this procedure serves to implement bargaining solutions such as the discrete Raiffa solution, the...

We discuss two support results for the Kalai-Smorodinsky bargaining solution in the context of an object division problem involving two agents. Allocations of objects resulting from strategic interaction are obtained as a demand vector in a specific market. For the first support result games in...

Howard (1992) argues that the Nash bargaining solution is not Nash implementable, as it does not satisfy Maskin monotonicity. His arguments can be extended to other bargaining solutions as well. However, by defining a social choice correspondence that is based on the solution rather than on its...

The note focuses on the marginal rates of substitution (MRS) in Nash’s product formula solution to bargaining and why the formula works. Two simple examples from duopoly and bilateral monopoly are used to demonstrate that the MRS's for both players are implicitly in the contract curve and the...