Bargaining in Game Theory

Abstract

We explore the bargaining game beginning with cooperative games, following the Nash Bargaining Solution and understanding the axiomatic approach, and its impact, followed by the Kalai-Smorodinsky solution which also follows the static axiomatic approach. After this, we move over to the realm of non-cooperative games to study the Rubinstein bargaining model which follows a dynamic strategic approach. We see how the Nash and Rubinstein solutions, though different approaches, are connected, and can be combined for applications to problems in the process. Finally, we examine the results of Reputational Bargaining put out by Dilip Abreu and Faruk Gul in the seminal paper on the field, studying the various results and insights they provide to the continuous time incomplete information bargaining model.