2007RePEc: Research Papers in EconomicsRequires access

Almost transferable utility, changes in production possibilities, and the Nash Bargaining and the Kalai-Smorodinsky Solutions

Elisabeth Gugl

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Abstract

Consider a two-person economy in which allocative efficiency is independent of distribution but cardinality of the agents' utility functions precludes transferable utility. I show that both agents either benefit or lose with any change of production possibilities under the Nash Bargaining and the Kalai-Smorodinsky solutions.

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Consider a two-person economy in which allocative efficiency is independent of distribution but cardinality of the agents' utility functions precludes transferable utility. I show that both agents either benefit or lose with any change of production possibilities under the Nash Bargaining and the Kalai-Smorodinsky solutions.

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Available abstract

Consider a two-person economy in which allocative efficiency is independent of distribution but cardinality of the agents' utility functions precludes transferable utility. I show that both agents either benefit or lose with any change of production possibilities under the Nash Bargaining and the Kalai-Smorodinsky solutions.

Key concepts: Bargaining problem, Allocative efficiency, Transferable utility, Economics, Production (economics), Microeconomics, Mathematical economics, Cardinality (data modeling)

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