On the Non-Symmetric Nash and Kalai-Smorodinsky Bargaining Solutions

Authors

  • Yigal Gerchak Tel Aviv University

DOI:

https://doi.org/10.7494/dmms.2015.9.1.55

Keywords:

91A

Abstract

Recently in some negotiation application areas the usual assumption that the negotiators are symmetric has been relaxed.  In particular, weights have been introduced to the Nash Bargaining Solution to reflect the different powers of the players. Yet operating with non-symmetric bargaining solutions and their implications is, we feel, not well understood.

We analyze the properties and optimization of the non-symmetric Nash Bargaining Solution and of a non-symmetric Kalai-Smorodinsky Bargaining Solution. We provide extensive comparative statics, then comment on the  implications of the concepts in supply chain coordination contexts.

References

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Hanany, E. and Y. Gerchak (2008) “Nash Bargaining Over Allocations in Inventory Pooling Contracts”. Naval Research Logistics, 55, 541-550.

Kalai, E. (1977) “Nonsymmetric Nash Solutions and Replications of a Person Bargaining”. International Journal of Game Theory, 6, 129-133.

Kalai, E. and M. Smorodinsky (1975) “Other Solutions to Nash’s Bargaining Problem”. Econometrica, 43, 513-518.

Mantin,B., H. Krishnan and T. Dhar (2014) “The Strategic Role of Third Party Marketplace in Retailing”. Production and Operations Management, 23, 1937-1949.

Nagarajan, M. and G. Sosic (2008) “Game Theoretic Analysis of Cooperation Supply Chain Agents: Review and Extensions”. European Journal of Operational Research, 187, 719-745.

Wu, D., O. Baron and O. Berman (2009) “Bargaining in Competitive Supply Chain with Uncertainty”. European Journal of Operational Research. 197, 548-558.

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Published

2016-02-17

How to Cite

Gerchak, Y. (2016). On the Non-Symmetric Nash and Kalai-Smorodinsky Bargaining Solutions. Decision Making in Manufacturing and Services, 9(1), 55–61. https://doi.org/10.7494/dmms.2015.9.1.55

Issue

Vol. 9 No. 1 (2015): Special Issue on Game Theory and Applications

Section

Articles

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The content of the journal is freely available according to the Creative Commons License Attribution 4.0 International (CC BY 4.0)

Received 2015-07-15
Accepted 2015-07-15
Published 2016-02-17