### Abstract

In this note we provide a characterization of a subclass of bargaining problems for which the Nash solution has the property of disagreement point monotonicity.While the original d-monotonicity axiom and its stronger notion, strong d-monotonicity, were introduced and discussed by Thomson [15], this paper introduces local strong d-monotonicity and derives a necessary and sufficient condition for the Nash solution to be locally strong d-monotonic.This characterization is given by using the sensitivity matrix of the Nash bargaining solution w.r.t. the disagreement point d.Moverover, we present a sufficient condition for the Nash solution to be strong d-monotonic.

Original language | English |
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Place of Publication | Tilburg |

Publisher | Macroeconomics |

Number of pages | 14 |

Volume | 2006-107 |

Publication status | Published - 2006 |

### Publication series

Name | CentER Discussion Paper |
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Volume | 2006-107 |

### Keywords

- Nash bargaining solution
- d-monotonicity
- diagonally dominant Stieltjes matrix

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## Cite this

Engwerda, J. C. (2006).

*On the Sensitivity Matrix of the Nash Bargaining Solution*. (CentER Discussion Paper; Vol. 2006-107). Macroeconomics.