Fairness, Efficiency, and the Nash Bargaining Solution
نویسنده
چکیده
A bargaining solution balances fairness and efficiency if each player’s payoff lies between the minimum and maximum of the payoffs assigned to him by the egalitarian and utilitarian solutions. In the 2-person bargaining problem, the Nash solution is the unique scale-invariant solution satisfying this property. Additionally, a similar result, relating the weighted egalitarian and utilitarian solutions to a weighted Nash solution, is obtained. These results are related to a theorem of Shapley, which I generalize. For n ≥ 3, there does not exist any n-person scale-invariant bargaining solution that balances fairness and efficiency.
منابع مشابه
The price of fairness with the extended Perles-Maschler solution
In Nash bargaining problem, due to fairness concern of players, instead of maximizing the sum of utilities of all players, an implementable solution should satisfy some axioms or characterizations. Such a solution can result in the so-called price of fairness, because of the reduction in the sum of utilities of all players. An important issue is to quantify the system efficiency loss under axio...
متن کاملA Secure and Fair Protocol that Addresses Weaknesses of the Nash Bargaining Solution in Nonlinear Negotiation
Negotiation with multiple interdependent issues is an important problem since much of real-world negotiation falls into this category. This paper examines the problem that, in such domains, agent utility functions are nonlinear, and thereby can create nonconvex Pareto frontiers. This in turn implies that the Nash Bargaining Solution, which has been viewed as the gold standard for identifying a ...
متن کاملApproximately Fair and Secure Protocols for Multiple
Multi-issue negotiation has been studied widely. Our work focuses on the important special case of negotiation with multiple interdependent issues, in which agent utility functions are nonlinear. In this paper, we propose a Distributed Mediator Protocol (DMP) for securely finding Pareto optimal agreements . We also propose a measure for selecting final agreements from the set of Pareto-optimal ...
متن کاملEfficiency, Fairness and Competitiveness in Nash Bargaining Games
Recently, [8] defined the class of Linear Nash Bargaining Games (LNB) and obtained combinatorial, polynomial time algorithms for several games in this class. [8] also defines two natural subclasses within LNB, UNB and SNB, which contain a number of natural Nash bargaining games. In this paper we define three basic game theoretic properties of Nash bargaining games: price of bargaining, fairness...
متن کاملEmploying a Multi-Criteria Approach under Bankruptcy Conditions for Optimal Allocation of Shared Water Resources through Using Asymmetric Nash Bargaining Method
Management based on the flexibility, fairness, and sustainability characteristics of water resources may play a key role in preventing the continuation of the crisis process as well as reducing water users’ conflict. In the present research, the framework for the optimal allocation of shared water resources was presented using a combination of bankruptcy concepts and asymmetric Nash bargaining....
متن کامل