School of Economics and Finance

No. 632: Alternative Characterizations of the Proportional Solution for Nonconvex Bargaining Problems with Claims

Michele Lombardi , Queen Mary, University of London
Naoki Yoshihara , Hitotsubashi University

July 1, 2008

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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