INSTITUTE OF MATHEMATICAL ECONOMICS

Anke Gerber

Working-Paper No. 244

August 1995

Abstract

In this paper we prove that the Nash solution is a risk neutral von Neumann-Morgenstern utility function on the class of pure bargaining games. Our result is a generalization of the result of Roth ( Econometrica 46, 1978, 587-594) to bargaining games with status quo not equal to 0.

Keywords: Bargaining, Utility Functions, Risk Neutrality