Bargaining is about how to split a pie between two persons. This paper reveals the inconsistency of the Rubinstein (1982) bargaining model. Its algebra is not correctly reflected by his Edgeworth box. Although an Edgeworth box guarantees complete exhaustion of the resource, it contains two pies....

Nash (1950) proposes a bargaining theory. This paper proves that Nash’s theory is not about bargaining, but is the result of exchange. Exchange also requires bargaining, but exchange itself is not bargaining

This paper proves that bargaining can be equivalently depicted in a utility possibility curve, to derive the same unfair Nash solution. This paper confirms that there is no simple solution for bargaining, and that the so-called social indifference curve does not exist

This paper proves that the traditional wisdom of robbing the rich for the poor will end up with just the opposite result. Evidences are given to confirm that such unjust re-distribution is happening in the real world. Welfare economists should be fired: to be replaced by wealth economists

Timing of payment occurs when production takes time, when both buyer and seller are subject to uncertainty during the production process and the eventual dispute afterward. While Cheng tries to work out a model to explain the timing problem, this paper points out that he has confused the...

This paper shows that any attempt to deviate from the basic bargaining line is doomed to fail. The Cournot attempt results in undistributed pie, while the Rubinstein-Binmore one in insufficient distribution. Discount rate may be important to bargaining, but game theorists have not been...

This paper proves that Rubinstein's bargaining theory is completely wrong. Using the Edgeworth box to solve the bargaining problem requires two pies. A reduced Edgeworth box may contain one pie, but it requires someone smarter than Ricardo to work out a common terms of trade. Rubinstein's...

This paper proves that Nash's exchange theory leads to inefficiency. Instead of coming to a vertex, the exchange leads to polarization. This paper questions Nash's method of exchange and suspects that his theory is not about bargaining

Nash (1950) proposes a bargaining theory. This paper proves that Nash's theory leads to unfair result. The reason for the wrong conclusion is his use of utility. This paper then recommends the old Jewish method described in Talmud for fairer solution

This paper develops a bargaining model based on Nash (1950). To get a larger share, a negotiator has to be wealthier, more patient, and/or to have lower negotiation cost. Sometimes, negotiation may end without an agreement, but the costly consequences will bring the parties back to negotiate...