Nash bargaining solution for two players with quadratic losses (maximising the
product of gains over the status quo along the segment between their ideals,
by bisection on its derivative) and Rubinstein's alternating-offers share
(1 - delta_2) / (1 - delta_1 delta_2).
Usage
SpatialBargaining(
ideal1,
ideal2,
status_quo = NULL,
delta1 = NULL,
delta2 = NULL
)
Arguments
- ideal1, ideal2
Ideal points.
- status_quo
Optional disagreement policy.
- delta1, delta2
Optional discount factors.
Value
list(nash, nash_t, nash_product, rubinstein_share, rubinstein).
References
Nash, J. F. (1950). The bargaining problem. Econometrica 18,
155-162. Rubinstein, A. (1982). Perfect equilibrium in a bargaining model.
Econometrica 50, 97-109.
Examples
SpatialBargaining(0, 1)$nash
#> [1] 0.5
