Browsing by Subject "Axiomatic approach"

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    Between anchors and aspirations: a new family of bargaining solutions
    (Springer, 2019-04) Karagözoğlu, Emin; Keskin, Kerim; Özcan Tok, Elif
    We study the salience and power of reference points in determining the effective anchors and aspirations in bargaining problems. Along this line, we enrich the analysis of the standard bargaining model with two new parameters: the first parameter can be interpreted as the effectiveness (or salience) of the reference point in determining the anchor, whereas the second parameter can be interpreted as its effectiveness in shaping agents’ aspirations. Utilizing these parameters, we provide a unifying framework for the study of bargaining problems with a reference point. The two-parameter family of bargaining solutions we obtain encompasses some well-known solutions as special cases. We offer multiple characterizations for each individual member of this family as well as two characterizations for the whole solution family in bilateral bargaining problems.
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    Kantian equilibria of a class of nash bargaining games
    (2021-08) Dizarlar, Atakan
    This thesis studies Kantian equilibria (Roemer, 2010) of an n-player bargaining game, which is a modified version of the well-known divide-the-dollar game. It starts with introducing the fundamental concepts of Kantian morality and how Kantian moral theory is captured in economic theory. Then, we first show that the Kantian equilibrium exists under fairly minimal assumptions. Second, if the bankruptcy rule used satisfies equal treatment of equals, and is almost nowhere proportional, then only equal division can prevail in any Kantian equilibrium. On the other hand, we show that an ‘anything goes’ type result emerges only under the proportional rule. Furthermore, using hybrid bankruptcy rules that we construct in a novel fashion, we can characterize the whole equilibrium set. Lastly, we analyse what happens to the equilibrium behavior and the axiomatic properties of the bankruptcy rules under the additive definition of Kantian equilibrium. Our results highlight the interactions between institutions (axiomatic properties of division rules) and agents’ equilibrium behavior.