Scale invariance versus translation variance in Nash bargaining problem

Mathematics – Statistics Theory

Scientific paper

Rate now

  [ 0.00 ] – not rated yet Voters 0   Comments 0

Details

Scientific paper

Nash's solution in his celebrated article on the bargaining problem calling for maximization of product of marginal utilities is revisited; a different line of argument supporting such a solution is suggested by straightforward or more direct reasoning, and a conjecture is raised which purports uniqueness of algorithm, namely his solution. Other alternative inferior algorithms are also suggested. It is argued in this article that the scale invariance principle for utility functions should and could be applied here, namely that utility rescaling u'=a*u is allowed, while translations, adding a constant to utility functions u'=u+b could not be applied here, since it is not invariant and leads to contradictory behavior. Finally, special situations of ownership and utilities, where trading is predicted not to take place at all because none is profitable are examined, and then shown to be consistent with the scale invariance principle.

No associations

LandOfFree

Say what you really think

Search LandOfFree.com for scientists and scientific papers. Rate them and share your experience with other people.

Rating

Scale invariance versus translation variance in Nash bargaining problem does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Scale invariance versus translation variance in Nash bargaining problem, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Scale invariance versus translation variance in Nash bargaining problem will most certainly appreciate the feedback.

Rate now

     

Profile ID: LFWR-SCP-O-499690

  Search
All data on this website is collected from public sources. Our data reflects the most accurate information available at the time of publication.