### Abstract

This paper studies independence of higher claims and independence of irrelevant

claims on the domain of bargaining problems with claims. Independence of higher

claims requires that the payoff of an agent does not depend on the higher claim of

another agent. Independence of irrelevant claims states that the payoffs should not

change when the claims decrease but remain higher than the payoffs. Interestingly, in conjunction with standard axioms from bargaining theory, these properties characterize a new constrained Nash solution, a constrained Kalai-Smorodinsky solution, and a constrained Kalai solution.

claims on the domain of bargaining problems with claims. Independence of higher

claims requires that the payoff of an agent does not depend on the higher claim of

another agent. Independence of irrelevant claims states that the payoffs should not

change when the claims decrease but remain higher than the payoffs. Interestingly, in conjunction with standard axioms from bargaining theory, these properties characterize a new constrained Nash solution, a constrained Kalai-Smorodinsky solution, and a constrained Kalai solution.

Original language | English |
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Place of Publication | Tilburg |

Publisher | CentER, Center for Economic Research |

Number of pages | 16 |

Volume | 2019-033 |

Publication status | Published - 14 Nov 2019 |

### Publication series

Name | CentER Discussion Paper |
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Volume | 2019-033 |

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### Keywords

- bargaining with claims
- independence of higher claims
- independence of irrelevant claims
- constrained Nash solution
- constrained Kalai-Smorodingsky solution

### Cite this

Josune Albizuri, M., Dietzenbacher, B., & Zarzuelo, J. (2019).

*Bargaining with Independence of Higher or Irrelevant Claims*. (CentER Discussion Paper; Vol. 2019-033). Tilburg: CentER, Center for Economic Research.