Dynamics and axiomatics of the equal area bargaining solution
type: Item
instance of: scholarly article
title: Dynamics and axiomatics of the equal area bargaining solution
zbMATH Open document ID: 0958.91001
published in: International Journal of Game Theory
publication date: 2001-04-08T00:00:00Z
review text: The Equal Area bargaining solution in a two-person game, like the Super-Additive solution, depends on the entire Pareto optimal boundary, and thus on the whole feasible set. Both were introduced as improvements on the Nash bargaining solution and the bargaining solution of Raiffa, which depend only on a small neighborhood of the solution point, plus in the latter case the utopia point. The Equal Area solution picks the Pareto optimal point where the area of the individually rational part of the feasible set above the solution point is equal to the area to the right of that point. This paper presents an alternative formulation of the Equal Area solution based on a dynamical process describing the disagreement point set, intended to shed additional light on the underlying bargaining process. Instead of a discrete step by step bargaining process, the corresponding continuous process where the players make similar but infinitesimally small steps is considered. This process is found to converge to the Equal Areas bargaining solution. This formulation also leads to an axiomatic characterization of this solution.
reviewed by: Gerald A. Heuer
Mathematics Subject Classification ID: 91A05
Mathematics Subject Classification ID: 91A12
zbMATH DE Number: 1435959
zbMATH Keywords: bargaining
zbMATH Keywords: dynamics
zbMATH Keywords: equal area solution
author: Emilio Calvo
author: Hans Peters
MaRDI profile type: Publication
full work available at URL: s001820050006
OpenAlex ID: W2095689705
DOI: 10.1007/S001820050006
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description: scientific article; zbMATH DE number 1435959