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 | American 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 |
Keywords
- Bargaining
- Egalitarianism
- Nash solution
- Utilitarianism
All Science Journal Classification (ASJC) codes
- General Decision Sciences
- Developmental and Educational Psychology
- Arts and Humanities (miscellaneous)
- General Economics,Econometrics and Finance
- Applied Psychology
- Computer Science Applications
- General Social Sciences