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1 Spieltheorie II SS 2005 Avner Shaked

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2 Game Theory II SS 2005 Avner Shaked

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4 Game Theory II n K. n K. Binmore Fun & Games A Text on Game Theory D.C. Heath & Co., 1992

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5 n M. n M. Osborne & A. Rubinstein Bargaining and Markets Academic Press, 1990 Game Theory II

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6 n K. n K. Binmore Fun & Games A Text on Game Theory D.C. Heath & Co., 1992 n M. n M. Osborne & A. Rubinstein Bargaining and Markets Academic Press, 1990 Game Theory II

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7 A Bargaining Problem S - a feasible set d - a disagreement point Nash Bargaining Theory Nash Verhandlungstheorie John Nash

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8 Nash Bargaining Theory u2u2 u1u1 S

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9 u2u2 u1u1 bounded closed S

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10 Nash Bargaining Theory u2u2 u1u1 A B S

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11 Nash Bargaining Theory u2u2 u1u1 d S

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12 Nash Bargaining Theory u2u2 u1u1 d S

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13 Nash Bargaining Theory d A Nash Bargaining Solution is a function u2u2 u1u1 S

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14 Nash Bargaining Theory A Nash Bargaining Solution is a function u2u2 u1u1 S d

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15 Axioms A1-A4 A1 (Pareto) A2 (Symmetry) d S

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16 Axioms A1-A4 A3 (Invariance to affine transformation) IIA A4 (Independence of Irrelevant Alternatives IIA)

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17 Axioms A1-A4 IIA A4 (Independence of Irrelevant Alternatives IIA) u2u2 u1u1 d

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18 Axioms A1-A4 IIA A4 (Independence of Irrelevant Alternatives IIA) Gives f(T,d) a flavour of maximum Pasta Fish Meat IIA is violated when

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