A New Simplified Derivation of Nash Bargaining Solution

Authors

Tanja Magoc, The University of Texas at El PasoFollow
Vladik Kreinovich, The University of Texas at El PasoFollow

Publication Date

11-2008

Comments

Technical Report: UTEP-CS-08-39

Published in Applied Mathematical Sciences, 2009, Vol. 3, No. 22, pp. 1097-1101.

Abstract

In the 1950s, the Nobel Prize winner John F. Nash has shown that under certain conditions, the best solution to the bargaining problem is when the product of the (increase in) utilities is the largest. Nash's derivation assumed that we are looking for strategies that assign a single situation to each bargaining situation. In this paper, we propose a simplified derivation of Nash bargaining solution that does not requires this assumption.