Abstract
The first-order condition of the Nash bargaining solution equates the ratio of utilities to the ratio of marginal utilities. It turns out that this common ratio plays a role in determining whether the Nash solution, roughly speaking, is “more utilitarian” or “more egalitarian.” More specifically, I propose a sense of proximity to utilitarianism and/or egalitarianism according to which, in bargaining problems with distinct utilitarian and egalitarian points, the Nash solution is closer to utilitarianism if the aforementioned ratio is smaller than one, and closer to egalitarianism if that ratio is greater than one.
Original language | English |
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Pages (from-to) | 457-464 |
Number of pages | 8 |
Journal | Theory and Decision |
Volume | 95 |
Issue number | 3 |
DOIs | |
State | Published - Oct 2023 |
Bibliographical note
Publisher Copyright:© 2023, The Author(s).
Keywords
- Bargaining
- Egalitarianism
- Nash solution
- Utilitarianism
ASJC Scopus subject areas
- General Decision Sciences
- Developmental and Educational Psychology
- Arts and Humanities (miscellaneous)
- Applied Psychology
- General Social Sciences
- General Economics, Econometrics and Finance
- Computer Science Applications