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Step-by-step negotiations and utilitarianism

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  • Shiran Rachmilevitch

    (University of Haifa)

Abstract

I characterize the individually-rational utilitarian bargaining solution by combining several classical axioms with a novel axiom, monotone step-by-step negotiations (monotone SSN). One of the axioms involved in the characterization is conflict freeness, which imposes Pareto optimality on problems that include their ideal point; when conflict freeness is replaced by weak Pareto optimality, only one additional solution becomes admissible—the egalitarian solution. I also show that in Kalai’s (Econometrica 45:1623–1630, 1977) SSN-based characterization of the proportional solutions, SSN can be weakened to monotone SSN if feasible set continuity is assumed.

Suggested Citation

  • Shiran Rachmilevitch, 2021. "Step-by-step negotiations and utilitarianism," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(2), pages 433-445, June.
    • Handle: RePEc:spr:jogath:v:50:y:2021:i:2:d:10.1007_s00182-021-00755-3
    DOI: 10.1007/s00182-021-00755-3
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    References listed on IDEAS

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    Cited by:

    1. William Thomson, 2022. "On the axiomatic theory of bargaining: a survey of recent results," Review of Economic Design, Springer;Society for Economic Design, vol. 26(4), pages 491-542, December.

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