Nonconvex Bargaining Problems: Some Recent Developments

Abstract

This paper presents a survey of the recent theoretical results on solutions to nonconvex bargaining problems. We discuss rationalizability of solutions to nonconvex bargaining problems, axiomatic characterizations of the symmetric and asymmetric Nash solution, the Kalai-Smorodinsky solution, and the egalitarian solution to nonconvex bargaining problems, and applications in the context of resource allocation and of bargaining over opportunity sets.