Egalitarian departures from the ideal point

Abstract

In this paper we propose a new solution to bargaining or group decision problems, which requires an arbitrator to choose that point on the pareto frontier of the feasible set where losses in utility from the ideal point are equal for all the agents. The solution is motivated by ones already existing in the literature. We than present two modes of characterization this solution which uses familiar axioms in bargaining theory and also some axioms which are intuitively plausible variants of those existing in the literature. The two key aximos are independence of common monotone Transformations module the ideal point and redundancy of additional alternatives other than a reference point.