Almost transferable utility, changes in production possibilities, and the Nash Bargaining and the Kalai-Smorodinsky Solutions
Elisabeth Gugl
Abstract
Open-access reader
Elisabeth Gugl
Abstract
Open-access reader
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.
A significance statement is not available in the OpenAlex record.
A contribution statement is not available in the OpenAlex record.
Method details are not available in the OpenAlex metadata.
Findings are not separately available in the OpenAlex metadata.
Limitations are not available in the OpenAlex metadata.
Application details are not available in the OpenAlex metadata.
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)