Fair bargains: Distributive justice and Nash bargaining theory

M Mariotti

    Research output: Contribution to journalArticlepeer-review

    27 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)733-741
    Number of pages9
    JournalReview of Economic Studies
    Volume66
    Issue number3
    Publication statusPublished - Jul 1999

    Keywords

    • NONCONVEX PROBLEMS
    • EXTENSION

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