Formal Description
A two person bargain problem consists of a disagreement, or threat, point, where and are the respective payoffs to player 1 and player 2, and a feasibility set, a closed convex subset of, the elements of which are interpreted as agreements. Set is convex because an agreement could take the form of a correlated combination of other agreements. The problem is nontrivial if agreements in are better for both parties than the disagreement. The goal of bargaining is to choose the feasible agreement in that could result from negotiations.
Read more about this topic: Bargaining Problem
Famous quotes containing the words formal and/or description:
“The bed is now as public as the dinner table and governed by the same rules of formal confrontation.”
—Angela Carter (1940–1992)
“Why does philosophy use concepts and why does faith use symbols if both try to express the same ultimate? The answer, of course, is that the relation to the ultimate is not the same in each case. The philosophical relation is in principle a detached description of the basic structure in which the ultimate manifests itself. The relation of faith is in principle an involved expression of concern about the meaning of the ultimate for the faithful.”
—Paul Tillich (1886–1965)