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We analyze the problem of dividing a fixed amount of a single commodity between two players on the basis of the Nash bargaining solution (NBS). For one-shot negotiations, a cornerstone result of Roth (Axiomatic models of bargaining. Springer, Berlin, 1979) establishes that the more risk averse player will obtain less than half the total amount. In the present paper, we assume that the bargaining procedure occurs over several rounds. In each round, an increasing share of the total amount is negotiated over in accordance with the NBS, the disagreement point being determined by the outcome of the previous round. In line with Roth's result, the final amount received by the more risk averse player is still bounded by half the total amount. As a new feature, however, this player does not lose from bargaining for more rounds if his opponent exhibits non-increasing absolute risk aversion. What is more, both players' risk profiles become essentially irrelevant if successive bargaining takes place over sufficiently small commodity increments. Each player then gets approximately half of the commodity. [ABSTRACT FROM AUTHOR]

We provide an alternative interpretation of the Shapley value in TU games as the unique maximizer of expected Nash welfare. [ABSTRACT FROM AUTHOR]

This paper, presents a model in which players interact via the formation of costly links and the benefits of bilateral interactions are determined by a stag-hunt game. A novel contribution of this paper is that the fraction of the cost borne by each player involved in a bilateral link is not fixed exogenously, but results from bargaining. We analyze the model both in a static and a dynamic setting. Whereas the static game has multiplicity of equilibria, we show that only one is stochastically stable. [ABSTRACT FROM AUTHOR]

In this note we provide a characterization of a subclass of bargaining problems for which the Nash solution has the property of disagreement point monotonicity. While the original d-monotonicity axiom and its stronger notion, strong d-monotonicity, were introduced and discussed by Thomson (J Econ Theory, 42: 50–58, 1987), this paper introduces local strong d-monotonicity and derives a necessary and sufficient condition for the Nash solution to be locally strongly d-monotonic. This characterization is given by using the sensitivity matrix of the Nash bargaining solution w.r.t. the disagreement point d. Moverover, we present a sufficient condition for the Nash solution to be strong d-monotonic. [ABSTRACT FROM AUTHOR]

Non-symmetric generalizations of the non-transferable utility (NTU) are defined and characterized axiomatically. The first of these is a weighted NTU value that is identical to the (symmetric) NTU value when players have the same weights. On the class of transferable utility games, this weighted NTU value coincides with the weighted Shapley value and on the pure bargaining games it coincides with the non-symmetric Nash bargaining solution. A further extension, the random order NTU value, is also defined and axiomatized and its relationship to the core is discussed. [ABSTRACT FROM AUTHOR]