Abstract:
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Is it important to negotiate on proportions rather than on numbers? To
answer this question, we analyze the behavior of well-known bargaining solutions
and the claims rules they induce when they are applied to a "proportionally
transformed" bargaining set SP -so-called bargaining-in-proportions
set. The idea of applying bargaining solutions to claims problems was already
developed in Dagan and Volij (1993). They apply the bargaining solutions
over a bargaining set that is the one de ned by the claims and the endowment.
A comparison among our results and theirs is provided.
Keywords: Bargaining problem, Claims problem, Proportional,
Constrained Equal Awards, Constrained Equal Losses, Nash bargaining
solution.
JEL classi fication: C71, D63, D71. |