bargaining theory
This course introduces students to bargaining theory, i.e. the problem of how several agents may agree on allocating a surplus among them in a non-competitive situation. We will explore then the problem of providing a strategic bargaining foundation to competitive outcomes. The course will be divided in three parts, addressing (1) firstly Nash’s axiomatic approach to the bargaining problem, (2) secondly the search for a non-cooperative (strategic) foundation to the solutions provided by the axiomatic approach, and (3) finally we will address the applications of bargaining theory to decentralized trade.