The Bargaining Problem

TLDR

The paper discusses the classical bargaining problem as a nonzero‑sum two‑person game, including two‑person cooperative games by John Nash. It presents a new treatment of this classical economic problem, applicable to bargaining, bilateral monopoly, and related forms. The approach assumes general behavioral rules for a single individual and for a pair of individuals within specific economic environments. The analysis yields a solution to the classical problem and identifies game‑theoretic values. See reference.

Abstract

A new treatment is presented of a classical economic problem, one which occurs in many forms, as bargaining, bilateral monopoly, etc. It may also be regarded as a nonzero-sum two-person game. In this treatment a few general assumptions are made concerning the behavior of a single individual and of a group of two individuals in certain economic environments. From these, the solution (in the sense of this paper) of classical problem may be obtained. In the terms of game theory, values are found for the game. См. также: Two-person cooperative games, автор - Джо Нэш.