# Axiomatic Models of Bargaining

• Alvin E. Roth
Book

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 170)

1. Front Matter
Pages N2-V
2. ### Nash’s Model of Bargaining

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Pages 1-3
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Pages 4-19
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Pages 20-34
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Pages 35-60
3. ### Other Models of Bargaining

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Pages 61-67
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Pages 68-77
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Pages 78-97
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Pages 98-109
4. Back Matter
Pages 110-127

### Introduction

The problem to be considered here is the one faced by bargainers who must reach a consensus--i.e., a unanimous decision. Specifically, we will be consid­ ering n-person games in which there is a set of feasible alternatives, any one of which can be the outcome of bargaining if it is agreed to by all the bargainers. In the event that no unanimous agreement is reached, some pre-specified disagree­ ment outcome will be the result. Thus, in games of this type, each player has a veto over any alternative other than the disagreement outcome. There are several reasons for studying games of this type. First, many negotiating situations, particularly those involving only two bargainers (i.e., when n = 2), are conducted under essentially these rules. Also, bargaining games of this type often occur as components of more complex processes. In addi­ tion, the simplicity of bargaining games makes them an excellent vehicle for studying the effect of any assumptions which are made in their analysis. The effect of many of the assumptions which are made in the analysis of more complex cooperative games can more easily be discerned in studying bargaining games. The various models of bargaining considered here will be studied axioma- cally. That is, each model will be studied by specifying a set of properties which serve to characterize it uniquely.

### Keywords

bargaining cooperative games evaluation utility value-at-risk

#### Authors and affiliations

• Alvin E. Roth
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