---
_id: '32106'
abstract:
- lang: eng
  text: We study the consequences of modeling asymmetric bargaining power in two-person
    bargaining problems. Comparing application of an asymmetric version of a bargaining
    solution to an upfront modification of the disagreement point, the resulting distortion
    crucially depends on the bargaining solution concept. While for the Kalai-Smorodinsky
    solution weaker players benefit from modifying the disagreement point, the situation
    is reversed for the Nash bargaining solution. There, weaker players are better
    off in the asymmetric bargaining solution. When comparing application of the asymmetric
    versions of the Nash and the Kalai-Smorodinsky solutions, we demonstrate that
    there is an upper bound for the weight of a player, so that she is better off
    with the Nash bargaining solution. This threshold is ultimately determined by
    the relative utilitarian bargaining solution. From a mechanism design perspective,
    our results provide valuable information for a social planner, when implementing
    a bargaining solution for unequally powerful players.
author:
- first_name: Claus-Jochen
  full_name: Haake, Claus-Jochen
  id: '20801'
  last_name: Haake
- first_name: Thomas
  full_name: Streck, Thomas
  id: '33041'
  last_name: Streck
citation:
  ama: Haake C-J, Streck T. <i>Distortion through Modeling Asymmetric Bargaining Power</i>.
    Vol 148.; 2022.
  apa: Haake, C.-J., &#38; Streck, T. (2022). <i>Distortion through modeling asymmetric
    bargaining power</i> (Vol. 148).
  bibtex: '@book{Haake_Streck_2022, series={CIE Working Paper Series}, title={Distortion
    through modeling asymmetric bargaining power}, volume={148}, author={Haake, Claus-Jochen
    and Streck, Thomas}, year={2022}, collection={CIE Working Paper Series} }'
  chicago: Haake, Claus-Jochen, and Thomas Streck. <i>Distortion through Modeling
    Asymmetric Bargaining Power</i>. Vol. 148. CIE Working Paper Series, 2022.
  ieee: C.-J. Haake and T. Streck, <i>Distortion through modeling asymmetric bargaining
    power</i>, vol. 148. 2022.
  mla: Haake, Claus-Jochen, and Thomas Streck. <i>Distortion through Modeling Asymmetric
    Bargaining Power</i>. 2022.
  short: C.-J. Haake, T. Streck, Distortion through Modeling Asymmetric Bargaining
    Power, 2022.
date_created: 2022-06-22T12:12:58Z
date_updated: 2022-11-19T15:42:15Z
department:
- _id: '205'
- _id: '475'
- _id: '200'
intvolume: '       148'
jel:
- C78
- D63
keyword:
- Asymmetric bargaining power
- Nash bargaining solution
- Kalai-Smorodinsky bargaining solution
language:
- iso: eng
page: '17'
project:
- _id: '2'
  name: 'SFB 901 - A: SFB 901 - Project Area A'
- _id: '7'
  name: 'SFB 901 - A3: SFB 901 - Subproject A3'
- _id: '1'
  name: 'SFB 901: SFB 901'
series_title: CIE Working Paper Series
status: public
title: Distortion through modeling asymmetric bargaining power
type: working_paper
user_id: '20801'
volume: 148
year: '2022'
...