Econometrica Vol. 46 No. 3 1978
The Nash Solution and the Utility of Bargaining
Abstract
[It has recently been shown that the utility of playing a game with side payments depends on a parameter called strategic risk posture. The Shapley value is the risk neutral utility function for games with side payments. In this paper, utility functions are derived for bargaining games without side payments, and it is shown that these functions are also determined by the strategic risk posture. The Nash solution is the risk neutral utility function for bargaining games without side payments.]
- DOI
- 10.2307/1914234
- Volume
- 46
- Issue
- 3
- Pages
- 587
- Sources
- bibtex:phds-export.bib crossref openalex