No. 632: Alternative Characterizations of the Proportional Solution for Nonconvex Bargaining Problems with Claims
July 1, 2008
We provide three alternative characterizations of the proportional solution defined on compact and comprehensive bargaining problems with claims that are not necessarily convex. One characterization result is obtained by using, together with other standard axioms, two solidarity axioms. Another characterization theorem shows that the single-valuedness axiom is dispensable even within the class of nonconvex problems if the standard symmetry axiom is imposed.
J.E.L classification codes: C78, D60, D70
Keywords:Bargaining problems, Claims point, Proportional solution, Nonconvexity, Solidarity axioms