bargaining games and the existence of utility function

Bubelis, Valentinas (November 1979) bargaining games and the existence of utility function. Former Series > Forschungsberichte / Research Memoranda 147


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abstract: we prove, under suitable assumptions, the existence of such utility functions u1, u2 for players 1 and 2, respectively, that player 1 prefers a simple two-person bargaining game with the status quo a to that with the same outcome set and the status quo b if and only if u1(a) - u1(b) > u2(a) - u2(b). the utility functions are unique up to their zero points and a common positive multiplier. we also extend this result to an arbitrary set of players. the derivation of utility does not involve any assumption concerning behaviour of individuals under risk.;

Item Type: IHS Series
Date Deposited: 26 Sep 2014 10:34
Last Modified: 01 Apr 2016 14:07

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