zbMATH — the first resource for mathematics

Fair bargains: Distributive justice and Nash bargaining theory. (English) Zbl 0942.91039
Summary: The Suppes-Sen dominance relation is a weak criterion of impartiality in distributive justice. I propose its application to Nash bargaining theory. The Nash bargaining solution (NBS) is characterized by replacing the controversial independence of irrelevant alternatives axiom with an axiom embodying the Suppes-Sen principle. This allows a clear interpretation of the NBS as a fair arbitration scheme. In addition, the proposed characterization is more robust than the standard one with respect to variations in the domain of bargaining problems.

91B26 Auctions, bargaining, bidding and selling, and other market models
91A12 Cooperative games
91B10 Group preferences
Full Text: DOI