Marcin Malawski

On the average payoff solution to Nash bargaining problem

935

Abstract

The paper contains the proof that no strongly Pareto optimal solution to the Nash bargaining problem fulfils the "equal area twisting" condition introduced in \cite{TRA}. A new modified version of this condition is proposed and included into a new hypothetical axiomatization of the "average payoff solution". A method of proving this hypothesis is suggested. We also show that the new condition does not imply the strong twisting property.

Keywords : Nash bargaining problem, bargaining solutions, equal area twisting, average payoff solution.