Fair bargains: Distributive justice and Nash bargaining theory. (English) Zbl 0942.91039

Mariotti, Marco

Rev. Econ. Stud. 66, No. 3, 733-741 (1999).

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.

MSC:

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

Keywords:

Suppes-Sen; Nash bargaining theory; fair arbitration scheme