Beyond Nash Bargaining Theory: The Nash Set
Roberto Serrano and Ken-Ichi Shimomura
We extend Nash's bargaining theory to non-convex and coalitional
problems. This paper
investigates the implications of Nash-like axioms for bilateral
problems and the properties of
consistency and converse consistency over multilateral settings.
The result is a characterization of the Nash set of NTU games,
defined as the solution concept where each pair of players
is splitting the gains from trade at a point where the Nash
product of their utilities, subject to
efficiency, is critical. The intersection of the Nash set and the core
is also characterized with
the same axioms for the class of games where the core is non-empty.
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This page last updated on: August 11, 1998