Bargaining with independence of higher or irrelevant claims

Independence of Irrelevant Interpersonal Comparisons

Arrow’s independence of irrelevant alternatives (IIA) condition makes social choice depend only on personal rather than interpersonal comparisons of relevant social states, and so leads to dictatorship. Instead, a new “independence of irrelevant interpersonal comparisons” (IIIC) condition allows anonymous Paretian social welfare functionals such as maximin and Sen’s “leximin,” even with an unre...

Moral Property Rights in Bargaining with Infeasible Claims

In many business transactions, in labor-management relations, in international conflicts, and welfare state reforms bargainers hold strong entitlements that are often generated by claims that are not feasible any more. These entitlements seem to considerably shape negotiation behavior. By using the novel setup of a ‘bargaining with claims’ experiment we provide new systematic evidence tracking ...

Fair division in unanimity bargaining with subjective claims

In an experiment on a subjective claims problem we compare three unanimity bargaining procedures – the Demand, the Offer and the Exit variant – in terms of fairness and efficiency. To assess the fairness of the allocations obtained by these procedures, we evaluate them from a partial point of view using stakeholders’ subjective evaluations of claims as elicited in a hypothetical fairness questi...

The political economy of inflation : Bargaining structure or central bank independence ? ∗

The causes of inflation are commonly analyzed as the function of either the organization of wage bargaining or the independence of the central bank. Although these explanations are widely treated as competing, recent evidence suggests that there may be merit to both arguments. This paper presents a game-theoretic model of wage bargaining and monetary policy-making that shows why the two institu...

Collective Bargaining in Higher Education