The lexicographic equal-loss solution (Q1181750): Difference between revisions

The paper deals with a new solution for Nash's bargaining problem. It is based on the classical equal-loss solution extended by a lexicographical procedure tending to a Pareto optimum if the equal-loss itself is not Pareto optimal. The equalized losses are related to the ideal point of maximally attainable utilities. The solution is characterized by five axioms, namely: Pareto optimality, anonymity, translation invariance, weak monotonicity, independence of other (than the ideal point) alternatives, and the main result concerns the uniqueness of the described solution under the accepted axioms.