The Bargaining Game
The bargaining game or Nash bargaining game is a simple two-player game used to model bargaining interactions. In the Nash Bargaining Game two players demand a portion of some good (usually some amount of money). If the total amount requested by the players is less than that available, both players get their request. If their total request is greater than that available, neither player gets their request. A Nash bargaining solution is a (Pareto efficient) solution to a Nash bargaining game. According to Walker (2005), Nash's bargaining solution was shown by John Harsanyi to be the same as Zeuthen's solution of the bargaining problem (Problems of Monopoly and Economic Warfare, 1930).
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