Risk Aversion and the Proportional Solution in Two Person Bargaining Games
Somdeb Lahiri
Abstract
Somdeb Lahiri
Abstract
For bargaining over the distribution of commodities or other riskiness outcomes, Nash's, solution predicts that risk aversion is a disadvantage in bargaining.
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For bargaining over the distribution of commodities or other riskiness outcomes, Nash's, solution predicts that risk aversion is a disadvantage in bargaining.
Key concepts: Bargaining problem, Risk aversion (psychology), Economics, Disadvantage, Microeconomics, Distribution (mathematics), Bargaining power, Inequity aversion