, Volume 28, Issue 3, pp 421-437
Date: 30 Aug 2006

Bargaining over a finite set of alternatives

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access

Abstract

We analyze bilateral bargaining over a finite set of alternatives. We look for "good" ordinal solutions to such problems and show that Unanimity Compromise and Rational Compromise are the only bargaining rules that satisfy a basic set of properties. We then extend our analysis to admit problems with countably infinite alternatives. We show that, on this class, no bargaining rule choosing finite subsets of alternatives can be neutral. When rephrased in the utility framework of Nash (1950), this implies that there is no ordinal bargaining rule that is finite-valued.

Professor Sertel passed away on January 25, 2003.