1. Spieltheorie II
SS 2005
Avner Shaked

2. Game Theory II
SS 2005
Avner Shaked

4. Game Theory II
K. Binmore Fun & Games A Text on Game Theory D.C. Heath & Co., 1992

5. Game Theory II
M. Osborne & A. Rubinstein Bargaining and Markets Academic Press, 1990

6. Game Theory II
K. Binmore Fun & Games A Text on Game Theory D.C. Heath & Co., 1992
M. Osborne & A. Rubinstein Bargaining and Markets Academic Press, 1990

7. Nash Bargaining Theory Nash Verhandlungstheorie
A Bargaining Problem
S - a feasible set
d - a disagreement point
John Nash

8. Nash Bargaining Theoryu2 u1 S

9. Nash Bargaining Theory
bounded u2 u1 S
closed

10. Nash Bargaining Theoryu2 u1 S B A

11. Nash Bargaining Theoryu2 u1 S d

12. Nash Bargaining Theoryu2 u1 S d

13. Nash Bargaining Theory
A Nash Bargaining Solution
is a function u2 u1 S d

14. Nash Bargaining Theory
A Nash Bargaining Solution
is a function u2 u1 S d

15. Axioms A1-A4
A1 (Pareto) d S
A2 (Symmetry)

16. A3 (Invariance to affine transformation)
Axioms A1-A4
A3 (Invariance to affine transformation)
A4 (Independence of Irrelevant Alternatives IIA)

17. A4 (Independence of Irrelevant Alternatives IIA)
Axioms A1-A4
A4 (Independence of Irrelevant Alternatives IIA) u2 u1 d

18. A4 (Independence of Irrelevant Alternatives IIA)
Axioms A1-A4
A4 (Independence of Irrelevant Alternatives IIA)
Gives f(T,d) a flavour of maximum
IIA is violated when
Pasta
Fish
Meat