# Spieltheorie II SS 2005 Avner Shaked.

## Presentation on theme: "Spieltheorie II SS 2005 Avner Shaked."— Presentation transcript:

Spieltheorie II SS 2005 Avner Shaked

Game Theory II SS 2005 Avner Shaked

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

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

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

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

Nash Bargaining Theory
u2 u1 S

Nash Bargaining Theory
bounded u2 u1 S closed

Nash Bargaining Theory
u2 u1 S B A

Nash Bargaining Theory
u2 u1 S d

Nash Bargaining Theory
u2 u1 S d

Nash Bargaining Theory
A Nash Bargaining Solution is a function u2 u1 S d

Nash Bargaining Theory
A Nash Bargaining Solution is a function u2 u1 S d

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

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

A4 (Independence of Irrelevant Alternatives IIA)
Axioms A1-A4 A4 (Independence of Irrelevant Alternatives IIA) u2 u1 d

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