A logic-based axiomatic model of bargaining

This paper introduces an axiomatic model for bargaining analysis. We describe a bargaining situation in propositional logic and represent bargainers' preferences in total pre-orders. Based on the concept of minimal simultaneous concessions, we propose a solution to n-person bargaining problems and prove that the solution is uniquely characterized by five logical axioms: Consistency, Comprehensiveness, Collective rationality, Disagreement, and Contraction independence. This framework provides a naive solution to multi-person, multi-issue bargaining problems in discrete domains. Although the solution is purely qualitative, it can also be applied to continuous bargaining problems through a procedure of discretization, in which case the solution coincides with the Kalai-Smorodinsky solution.