On the n-player bargaining problem: the uniform density approach

Abstract

In an earlier paper we showed that the Nash Bargaining solution for 2-player demand games can be
obtained as a non-cooperative solution if each player assumes a uniform density over the choices of his
opponent. In this paper we investigate the possibility of recapturing the Harsanyi-Nash bargaining
solution for N-player games through an extension of the uniform density argument. We show that for
certain games a direct generalization is possible. Also, in all games, the Harsanyi-Nash solution is
obtained if each player bargains separately with every other player and ascribes a uniform density over his
opponent's choices.