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Distributive Justice and Bargaining Solutions

Author

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  • Nejat Anbarci
  • Ching-jen Sun

Abstract

Suppes-Sen Dominance is a commonly accepted criterion of impartiality in distributive justice. Mariotti (1999) characterized the Nash bargaining solution using Nash (1950).s Scale Invariance (SI) axiom and an axiom named Suppes-Sen Proofness (SSP) that embodies the Suppes-Sen principle. By adding a relative equity component to SSP, we first consider a stronger version of it, the Strong Suppes-Sen Proofness (SSSP) property. It turns out that the Egalitarian solution is the unique solution satisfying SSSP. We then consider two weaker versions of SSP, namely WSSP and alpha~WSSP. Yet, it is still possible to characterize the Nash solution by using WSSP and SI only. alpha~WSSP is much weaker than Weak Pareto Optimality (WPO) when alpha= 1. It turns out that it is possible to characterize the Nash solution by using Individual Rationality (IR), SI and alpha~WSSP for any alpha between [0 1).

Suggested Citation

  • Nejat Anbarci & Ching-jen Sun, 2009. "Distributive Justice and Bargaining Solutions," Working Papers 2009_20, Deakin University, Department of Economics.
    • Handle: RePEc:dkn:econwp:eco_2009_20
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    File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2009_20.pdf
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    More about this item

    Keywords

    Distributive justice; the Suppes-Sen Proofness; the Nash solution; the Egalitarian solution.;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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