INSTITUTE OF MATHEMATICAL ECONOMICS

Anke Gerber

Working-Paper No. 273

June 1997

Abstract

We attempt to unify the theory of bargaining problems with and without claims. The claims of the players define a natural status quo for the underlying bargaining problem which can therefore be solved using a solution for bargaining problems (without claims). Following this procedure we define an extension of the Raiffa-Kalai-Smorodinsky solution to bargaining problems with claims. It is shown that this solution is uniquely characterized by a set of axioms including a monotonicity axiom.

Keywords: Bargaining, Claims, Adjusted Threatpoint