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Nash Bargaining Solution
Cooperative bargaining is a process in which two people decide how to share a surplus that they can jointly generate. In many cases, the surplus created by the two players can be shared in many ways, forcing the players to negotiate which division of payoffs to choose. Such surplus-sharing problems (also called bargaining problem) are faced by management and labor in the division of a firm's profit, by trade partners in the specification of the terms of trade, and more. The present article focuses on the ''normative'' approach to bargaining. It studies how the surplus ''should'' be shared, by formulating appealing axioms that the solution to a bargaining problem should satisfy. It is useful when both parties are willing to cooperate in implementing the fair solution. The five axioms, any Nash Bargaining Solution should satisfy are Pareto Optimality (PAR), Individual Rationality (IR), Independent of Expected Utility Representations (INV), Independence of Irrelevant Alternatives (IIA) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sequential Bargaining
Sequential bargaining (also known as alternate-moves bargaining, alternating-offers protocol, etc.) is a structured form of bargaining between two participants, in which the participants take turns in making offers. Initially, person #1 has the right to make an offer to person #2. If person #2 ''accepts'' the offer, then an agreement is reached and the process ends. If person #2 ''rejects'' the offer, then the participants switch turns, and now it is the turn of person #2 to make an offer (which is often called a ''counter-offer''). The people keep switching turns until either an agreement is reached, or the process ends with a disagreement due to a certain ''end condition''. Several end conditions are common, for example: * There is a pre-specified limit on the number of turns; after that many turns, the process ends. * There is a pre-specified limit on the negotiation time; when time runs out, the process ends. * The number of possible offers is finite, and the protocol rules dis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Rawls
John Bordley Rawls (; February 21, 1921 – November 24, 2002) was an American moral, legal and political philosopher in the liberal tradition. Rawls received both the Schock Prize for Logic and Philosophy and the National Humanities Medal in 1999, the latter presented by President Bill Clinton, in recognition of how Rawls's work "revived the disciplines of political and ethical philosophy with his argument that a society in which the most fortunate help the least fortunate is not only a moral society but a logical one". In 1990, Will Kymlicka wrote in his introduction to the field that "it is generally accepted that the recent rebirth of normative political philosophy began with the publication of John Rawls's ''A Theory of Justice'' in 1971". Rawls has often been described as one of the most influential political philosophers of the 20th century. He has the unusual distinction among contemporary political philosophers of being frequently cited by the courts of law in the Unite ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sequential Bargaining
Sequential bargaining (also known as alternate-moves bargaining, alternating-offers protocol, etc.) is a structured form of bargaining between two participants, in which the participants take turns in making offers. Initially, person #1 has the right to make an offer to person #2. If person #2 ''accepts'' the offer, then an agreement is reached and the process ends. If person #2 ''rejects'' the offer, then the participants switch turns, and now it is the turn of person #2 to make an offer (which is often called a ''counter-offer''). The people keep switching turns until either an agreement is reached, or the process ends with a disagreement due to a certain ''end condition''. Several end conditions are common, for example: * There is a pre-specified limit on the number of turns; after that many turns, the process ends. * There is a pre-specified limit on the negotiation time; when time runs out, the process ends. * The number of possible offers is finite, and the protocol rules dis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bargaining
In the social sciences, bargaining or haggling is a type of negotiation in which the buyer and seller of a good or service debate the price or nature of a transaction. If the bargaining produces agreement on terms, the transaction takes place. Although the most apparent aspect of bargaining in markets is as an alternative pricing strategy to fixed prices, it can also include making arrangements for credit or bulk purchasing, as well as serving as an important method of clienteling. Bargaining has largely disappeared in parts of the world where retail stores with fixed prices are the most common place to purchase goods. However, for expensive goods such as homes, antiques and collectibles, jewellery and automobiles, bargaining can remain commonplace. Dickering and "haggling" refer to the same process. Where it takes place Haggling is associated commonly with bazaars and other markets where centralized regulation is difficult or impossible. Both religious beliefs an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Abhinay Muthoo
Abhinay Muthoo is an economist specializing in negotiations, game theory and public policy. Abhinay has 37 years of teaching and research experience, across several universities including Bristol, Cambridge, Essex, Warwick and the LSE. He has been the Head of the Departments of Economics at Essex and at Warwick, and the Dean of Warwick in London. He is a Fellow of the National Institute of Economic and Social Research and a member of the UK Cross Parliamentary Party Youth Violence Commission. Education He studied for a BSc in Economics at the London School of Economics which he obtained with First Class Honours, before proceeding to obtain his MPhil and PhD in Economics at the University of Cambridge, where he was supervised by David Canning and Partha Dasgupta, and his doctoral thesis were examined by Kenneth Binmore and Frank Hahn. Academic career Abhinay was a Professor of Economics at the University of Warwick between 2008 and 2022. During that period, he was the Head of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rubinstein Bargaining Model
A Rubinstein bargaining model refers to a class of bargaining games that feature alternating offers through an infinite time horizon. The original proof is due to Ariel Rubinstein in a 1982 paper. For a long time, the solution to this type of game was a mystery; thus, Rubinstein's solution is one of the most influential findings in game theory. Requirements A standard Rubinstein bargaining model has the following elements: * Two players * Complete information * Unlimited offers—the game keeps going until one player accepts an offer * Alternating offers—the first player makes an offer in the first period, if the second player rejects, the game moves to the second period in which the second player makes an offer, if the first rejects, the game moves to the third period, and so forth * Delays are costly Solution Consider the typical Rubinstein bargaining game in which two players decide how to divide a pie of size 1. An offer by a player takes the form ''x'' = (''x''1, ''x''2) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Uriel Rothblum
Uriel George "Uri" Rothblum (Tel Aviv, March 16, 1947 – Haifa, March 26, 2012) was an Israeli mathematician and operations researcher. From 1984 until 2012 he held the Alexander Goldberg Chair in Management Science at the Technion – Israel Institute of Technology in Haifa, Israel.. Rothblum was born in Tel Aviv to a family of Jewish immigrants from Austria. He went to Tel Aviv University, where Robert Aumann became his mentor; he earned a bachelor's degree there in 1969 and a master's in 1971. He completed his doctorate in 1974 from Stanford University, in operations research, under the supervision of Arthur F. Veinott. After postdoctoral research at New York University, he joined the Yale University faculty in 1975, and moved to the Technion in 1984. Rothblum became president of the Israeli Operational Research Society (ORSIS) for 2006–2008, and editor-in-chief of '' Mathematics of Operations Research'' from 2010 until his death. He was elected to the 2003 class of Fellows ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alvin E
Alvin may refer to: Places Canada *Alvin, British Columbia United States *Alvin, Colorado *Alvin, Georgia * Alvin, Illinois * Alvin, Michigan *Alvin, Texas *Alvin, Wisconsin, a town *Alvin (community), Wisconsin, an unincorporated community Other uses * Alvin (given name) * Alvin (crater), a crater on Mars * Alvin (digital cultural heritage platform), a Swedish platform for digitised cultural heritage * Alvin (horse), a Canadian Standardbred racehorse * 13677 Alvin, an asteroid * DSV ''Alvin'', a deep-submergence vehicle * Alvin, a fictional planet on ''ALF'' (TV series) * Alvin Seville, of the fictional animated characters Alvin and the Chipmunks * "Alvin", by James from the album ''Girl at the End of the World'' * Tropical Storm Alvin See also * Alvin Community College * Alvin High School Alvin High School is a public high school located in the city of Alvin, Texas, United States and classified as a 6A school by the University Interscholastic League (UIL). It is a part o ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Aversion
In economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even if the average outcome of the latter is equal to or higher in monetary value than the more certain outcome. Risk aversion explains the inclination to agree to a situation with a more predictable, but possibly lower payoff, rather than another situation with a highly unpredictable, but possibly higher payoff. For example, a risk-averse investor might choose to put their money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value. Example A person is given the choice between two scenarios: one with a guaranteed payoff, and one with a risky payoff with same average value. In the former scenario, the person receives $50. In the uncertain scenario, a coin is flipped to decide whether the person receives $100 or nothing. The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strong Reciprocity
Strong reciprocity is an area of research in behavioral economics, evolutionary psychology, and evolutionary anthropology on the predisposition to cooperate even when there is no apparent benefit in doing so. This topic is particularly interesting to those studying the evolution of cooperation, as these behaviors seem to be in contradiction with predictions made by many models of cooperation. In response, current work on strong reciprocity is focused on developing evolutionary models which can account for this behavior. Critics of strong reciprocity argue that it is an artifact of lab experiments and does not reflect cooperative behavior in the real world. Evidence for strong reciprocity Experimental evidence A variety of studies from experimental economics provide evidence for strong reciprocity, either by demonstrating people's willingness to cooperate with others, or by demonstrating their willingness to take costs on themselves to punish those who do not. Evidence for coopera ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Herbert Gintis
Herbert Gintis (February 11, 1940 – January 5, 2023) was an American economist, behavioral scientist, and educator known for his theoretical contributions to sociobiology, especially altruism, cooperation, epistemic game theory, gene-culture coevolution, efficiency wages, strong reciprocity, and human capital theory. Throughout his career, he worked extensively with economist Samuel Bowles. Their landmark book, ''Schooling in Capitalist America'', had multiple editions in five languages since it was first published in 1976. Their book, ''A Cooperative Species: Human Reciprocity and its Evolution'' was published by Princeton University Press in 2011. Life and career Gintis was born in Philadelphia, Pennsylvania, where his father had a retail furniture business. He grew up there and later in Bala Cynwyd (just outside Philadelphia). Gintis completed his undergraduate degree at the University of Pennsylvania in three years, one of which was spent at the University of Paris, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Justice
Justice, in its broadest sense, is the principle that people receive that which they deserve, with the interpretation of what then constitutes "deserving" being impacted upon by numerous fields, with many differing viewpoints and perspectives, including the concepts of moral correctness based on ethics, rationality, law, religion, equity and fairness. The state will sometimes endeavor to increase justice by operating courts and enforcing their rulings. Early theories of justice were set out by the Ancient Greek philosophers Plato in his work The Republic, and Aristotle in his Nicomachean Ethics. Advocates of divine command theory have said that justice issues from God. In the 1600s, philosophers such as John Locke said that justice derives from natural law. Social contract theory said that justice is derived from the mutual agreement of everyone. In the 1800s, utilitarian philosophers such as John Stuart Mill said that justice is based on the best outcomes for the gre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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