Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Mar, 1984, Volume 52, Issue 2

Two-Person Bargaining Problems with Incomplete Information

https://www.jstor.org/stable/1911499
p. 461-488

Roger B. Myerson

A generalization of the Nash bargaining solution is defined for two-person bargaining problems with incomplete information. These solutions form the smallest set satisfying three axioms: a probability-invariance axiom, an extension (or independence of irrelevant alternatives) axiom, and a random-dictatorship axiom. A bargaining solution can also be characterized as an incentive-compatible mechanism that is both equitable and efficient in terms of some virtual utility scales for the two players.


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