A negotiation procedure converging to the Nash bargaining solution

Abstract

In this paper we propose a negotiation procedure for the bilateral monopoly problem, solutions of which converge to the Nash bargaining solution. In this paper we have established a convergent negotiation procedure for the bilateral monopoly problem. A negotiation procedure considerably different from ours has been suggested by Maschler, Owen and Pe leg which converges to the Nash-set for a bargaining problem with a larger number of agents.