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Title:An axiomatization of the sequential Raiffa solution PDF Logo
Authors:Trockel, Walter
Issue Date:2009
Series/Report no.:Working papers // Institute of Mathematical Economics 425
Abstract:This paper provides four axioms that uniquely characterize the sequential Raiffa solution proposed by Raiffa (1951, 1953) for two-person bargaining games. Three of these axioms are standard and are shared by several popular bargaining solutions. They suffice to characterize these solutions on TU-bargaining games where they coincide. The fourth axiom is a weakening of Kalai's (1977) axiom of step-by-step negotiating and turns out to be sort of a dual condition to a weaker version of Nash's IIA-axiom that together with the three standard axioms suffices to characterize the Nash bargaining solution due to Nash (1950). A conclusion of this axiomatization is that in contrast to all other known bargaining solutions the sequential Raiffa solution does not represent just another kind of fairness or equity condition in addition to the three standard axioms but rather is determined by indefinite repeated application of the three standard axioms.
Subjects:Bargaining games
Raiffa solution
Nash solution
Axiomatization
Persistent Identifier of the first edition:urn:nbn:de:hbz:361-16196
Document Type:Working Paper
Appears in Collections:Working Papers, Center for Mathematical Economics (IMW), Bielefeld University

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