Individually rational equal loss principle for bargaining problems

1. Carmen Herrero Blanco
2. María del Carmen Marco Gil

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Abstract

The purpose of this paper is to provide a new solution concept for bargaining problems, which modifies Chun's Equal-Loss Solution in a way that ensures the individual rationality. We also consider its lexicographic extension which turns out to be both individually rational and Pareto Optimal. Characterizations of the proposed solutions are al so provided.

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