ABSTRACT
This chapter examines several pure bargaining scenarios and their resolution by the egalitarian, Raiffa, and Nash solution methods. It begins with the simple example of sharing a prize at the county fair and shows that how any strategic game can be considered a bargaining game when binding agreements are permitted. The chapter summarizes the three solution methods axiomatically, modeling fairness with formal properties and thereby providing one way of selecting the appropriate solution in a given scenario. It describes a variety of fairness properties for solution methods and identifies which of the properties apply to our three methods. Friends negotiate where to go to dinner, consumers negotiate prices with vendors, and countries negotiate bilateral trade agreements. The source of the Columbia River is in Canada, but it runs south into the United States before emptying into the Pacific Ocean. A 1961 treaty required Canada to build three dams and allowed an American reservoir to extend into Canada.
