Abstract
bid-offer–counteroffer mechanism is proposed to solve a fundamental two-person decision choice problem with two alternatives. It yields a unique subgame perfect equilibrium outcome, and leads to an intuitive overall solution that offers a reconciliation between egalitarianism and utilitarianism. We then investigate the axiomatic foundation of the solution. Furthermore, we compare it with several conventional strategic approaches to this setting.
| Original language | English |
|---|---|
| Pages (from-to) | 501-520 |
| Number of pages | 20 |
| Journal | International Journal of Game Theory |
| Volume | 42 |
| Issue number | 2 |
| Early online date | 17 May 2012 |
| DOIs | |
| Publication status | Published - 1 May 2013 |