Solidarity and cooperative bargaining solutions
In this paper, we consider production economies with possibly unequal production skills and with the possibility of technological innovations, in which resource allocations are determined via bargaining among individuals. We define the Nash (resp. the Kalai-Smorodinsky) bargaining solution as the (bargaining) allocation rule whose utility outcomes just result in the Nash (resp. the Kalai-Smorodinsky) bargaining outcomes. Two new axioms regarding compensation for low skill agents are introduced as...