IDEAS home Printed from https://ideas.repec.org/a/spr/jogath/v26y1998i4p501-524.html
   My bibliography  Save this article

Multiple-Issue Bargaining and Axiomatic Solutions

Author

Listed:
  • Clara Ponsati

    (Department d'Economia i Historia Econoica, Universitat Autonoma, Barcelona 08193, Spain, e-mail: cponsati@cc.uab.es)

  • Joel Watson

    (Department of Economics, 0508, University of California, San Diego, La Jolla, CA 92093-0508, USA, e-mail: jwatson@weber.ucsd.edu)

Abstract

We study two-person, multiple-issue bargaining problems and identify four procedures by which the bargaining may take place. Drawing on some logic from non-cooperative game theory, we propose axioms which relate the outcomes of the procedures. We also promote a weak monotonicity axiom on solutions, called issue-by-issue monotonicity, which is geared toward multiple-issue bargaining. Our main result concerns the relationship between a sequential bargaining procedure - with the rule that agreements are implemented only after all issues are resolved - and global bargaining (in which all issues are negotiated simultaneously). If a bargaining solution predicts the same outcome with these two procedures, then we say that it satisfies agenda independence. We prove that a solution satisfies axioms of efficiency, symmetry, scale invariance, issue-by-issue monotonicity, and agenda independence if and only if it is the Nash solutions. This result provides new intuition for Nash's independence of irrelevant alternatives axiom. Among other results, we show that a solution is invariant to all four of the procedures and satisfies efficiency and symmetry if and only if it is the utilitarian solution with equal weights. We comment on the results of other authors who address multiple-issue bargaining.

Suggested Citation

  • Clara Ponsati & Joel Watson, 1998. "Multiple-Issue Bargaining and Axiomatic Solutions," International Journal of Game Theory, Springer;Game Theory Society, vol. 26(4), pages 501-524.
    • Handle: RePEc:spr:jogath:v:26:y:1998:i:4:p:501-524
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Busch, Lutz-Alexander & Horstmann, Ignatius J., 2002. "The game of negotiations: ordering issues and implementing agreements," Games and Economic Behavior, Elsevier, vol. 41(2), pages 169-191, November.
    2. Bossert, Walter & Peters, Hans, 2000. "Multi-attribute decision-making in individual and social choice," Mathematical Social Sciences, Elsevier, vol. 40(3), pages 327-339, November.
    3. O'Neill, Barry & Samet, Dov & Wiener, Zvi & Winter, Eyal, 2004. "Bargaining with an agenda," Games and Economic Behavior, Elsevier, vol. 48(1), pages 139-153, July.
    4. de Clippel, Geoffroy & Bejan, Camelia, 2011. "No profitable decompositions in quasi-linear allocation problems," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1995-2012, September.
    5. Joan Esteban & József Sákovics, 2008. "A Theory of Agreements in the Shadow of Conflict: The Genesis of Bargaining Power," Theory and Decision, Springer, vol. 65(3), pages 227-252, November.
    6. Joan Esteban & József Sákovics, 2002. "Endogenous bargaining power," Economics Working Papers 644, Department of Economics and Business, Universitat Pompeu Fabra.
    7. Amparo M. Mármol Conde & Clara Ponsatí Obiols, 2006. "Bargaining Multiple Issues with Leximin Preferences," Economic Working Papers at Centro de Estudios Andaluces E2006/05, Centro de Estudios Andaluces.
    8. Harri Ehtamo & Raimo P. Hämäläinen, 2001. "Interactive Multiple‐Criteria Methods for Reaching Pareto Optimal Agreements in Negotiations," Group Decision and Negotiation, Springer, vol. 10(6), pages 475-491, November.
    9. Joan-Maria Esteban & József Sákovics, 2005. "A Theory of Agreements in the Shadow of Conflict," Working Papers 255, Barcelona School of Economics.
    10. Joan Esteban & Jozsef Sakovics, 1999. "Why do lions get the lion's share? A Hobbesian theory of agreements," Edinburgh School of Economics Discussion Paper Series 37, Edinburgh School of Economics, University of Edinburgh.
    11. Katsuhide Fujita & Takayuki Ito & Mark Klein, 2012. "A Secure and Fair Protocol that Addresses Weaknesses of the Nash Bargaining Solution in Nonlinear Negotiation," Group Decision and Negotiation, Springer, vol. 21(1), pages 29-47, January.
    12. Gayer, Gabrielle & Persitz, Dotan, 2016. "Negotiation across multiple issues," Theoretical Economics, Econometric Society, vol. 11(3), September.
    13. Ephraim Zehavi & Amir Leshem, 2018. "On the Allocation of Multiple Divisible Assets to Players with Different Utilities," Computational Economics, Springer;Society for Computational Economics, vol. 52(1), pages 253-274, June.
    14. Chwolka, Anne & Raith, Matthias G., 2001. "Group preference aggregation with the AHP - implications for multiple-issue agendas," European Journal of Operational Research, Elsevier, vol. 132(1), pages 176-186, July.
    15. M. Hinojosa & A. Mármol & L. Monroy, 2005. "Generalized Maximin Solutions in Multicriteria Bargaining," Annals of Operations Research, Springer, vol. 137(1), pages 243-255, July.
    16. Naeve-Steinweg, E., 2004. "The averaging mechanism," Games and Economic Behavior, Elsevier, vol. 46(2), pages 410-424, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jogath:v:26:y:1998:i:4:p:501-524. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.