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Monotonicity of bargaining solutions with respect to the disagreement point
Institution:Department of Economics, University of Rochester, Rochester, New York 14627, USA
Abstract:We investigate whether the best known solutions to the bargaining problem respond appropriately to certain changes in the disagreement point d, for a fixed feasible set. If di increases, while for each ji, dj remains constant, then these solutions recommend an increase in agent i's payoff, in agreement with intuition. However, the stronger requirement that agent i be the only one to gain is not generally met.
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