Events at CERGE-EI
Thursday, 17 March, 2016 | 16:30 | Micro Theory Research Seminar
Prof. Marco LiCalzi (U. of Venice) “Target-based solutions for Nash bargaining”
Ca' Foscari University of Venice, Italy
Authors: Lorenzo Bastianello and Marco LiCalzi
Abstract: We revisit the Nash model for two-person bargaining. A mediator knows agents' ordinal preferences over feasible proposals, but has incomplete information about their acceptance thresholds. We provide a behavioural characterisation under which the mediator recommends a proposal that maximises the probability that bargainers strike an agreement. Some major solutions are recovered as special cases; in particular, we offer a straightforward interpretation for the product operator underlying the Nash solution.
Keywords: cooperative bargaining, target-based preferences, Nashsolution, egalitarianand utilitarian solutions, mediation, copulas.
JEL ClassificationNumbers: C78, D81, D74.
Full Text: “Target-based solutions for Nash bargaining”
