Arbeitspapier
Stability, Fairness and Random Walks in the Bargaining Problem
We study the classical bargaining problem and its two canonical solutions, (Nash and Kalai-Smorodinsky), from a novel point of view: we ask for stability of the solution if both players are able distort the underlying bargaining process by reference to a third party (e.g. a court). By exploring the simplest case, where decisions of the third party are made randomly we obtain a stable solution, where players do not have any incentive to refer to such a third party. While neither the Nash nor the Kalai-Smorodinsky solution are able to ensure stability in case reference to a third party is possible, we found that the Kalai-Smorodinsky solution seems to always dominate the stable allocation which constitutes novel support in favor of the latter.
- Language
-
Englisch
- Bibliographic citation
-
Series: ICAE Working Paper Series ; No. 67
- Classification
-
Wirtschaft
- Subject
-
Bargaining problem
Nash solution
Kalai-Smorodinsky Solution
Stability
Brownian motion
Feynman-Kac formula
partial differential equation
- Event
-
Geistige Schöpfung
- (who)
-
Kapeller, Jakob
Steinerberger, Stefan
- Event
-
Veröffentlichung
- (who)
-
Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE)
- (where)
-
Linz
- (when)
-
2017
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kapeller, Jakob
- Steinerberger, Stefan
- Johannes Kepler University Linz, Institute for Comprehensive Analysis of the Economy (ICAE)
Time of origin
- 2017
Other Objects (12)
Stability, fairness and random walks in the bargaining problem
Fairness in bargaining and markets
Principles of random walk
Random walks in cones
Principles of random walk
Random walks in random environment : random orientations and branching
Random Walks in Random Environment: Random Orientations and Branching
Wage Bargaining when Workers Have Fairness Concerns
Anomalous diffusion and random walks on random fractals
Anomalous diffusion and random walks on random fractals
Advances in Negotiation Theory: Bargaining, Coalitions and Fairness
Random Walks, Boundaries and Spectra
Stability, fairness and random walks in the bargaining problem
Fairness in bargaining and markets
Principles of random walk
Random walks in cones
Principles of random walk
Random walks in random environment : random orientations and branching
Random Walks in Random Environment: Random Orientations and Branching
Wage Bargaining when Workers Have Fairness Concerns
Anomalous diffusion and random walks on random fractals
Anomalous diffusion and random walks on random fractals
Advances in Negotiation Theory: Bargaining, Coalitions and Fairness
Random Walks, Boundaries and Spectra
Stability, fairness and random walks in the bargaining problem
Fairness in bargaining and markets
Principles of random walk
Random walks in cones
Principles of random walk
Random walks in random environment : random orientations and branching
Random Walks in Random Environment: Random Orientations and Branching
Wage Bargaining when Workers Have Fairness Concerns
Anomalous diffusion and random walks on random fractals
Anomalous diffusion and random walks on random fractals
Advances in Negotiation Theory: Bargaining, Coalitions and Fairness