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Spieltheorie II SS 2005 Avner Shaked

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Game Theory II SS 2005 Avner Shaked

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

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

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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

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**Nash Bargaining Theory Nash Verhandlungstheorie**

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

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**Nash Bargaining Theory**

u2 u1 S

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**Nash Bargaining Theory**

bounded u2 u1 S closed

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**Nash Bargaining Theory**

u2 u1 S B A

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**Nash Bargaining Theory**

u2 u1 S d

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**Nash Bargaining Theory**

u2 u1 S d

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**Nash Bargaining Theory**

A Nash Bargaining Solution is a function u2 u1 S d

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**Nash Bargaining Theory**

A Nash Bargaining Solution is a function u2 u1 S d

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

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**A3 (Invariance to affine transformation)**

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

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**A4 (Independence of Irrelevant Alternatives IIA)**

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

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**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

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