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:
“I will not let him stir
Till I have used the approvèd means I have,
With wholesome syrups, drugs, and holy prayers,
To make of him a formal man again.”
—William Shakespeare (1564–1616)
“The Sage of Toronto ... spent several decades marveling at the numerous freedoms created by a “global village” instantly and effortlessly accessible to all. Villages, unlike towns, have always been ruled by conformism, isolation, petty surveillance, boredom and repetitive malicious gossip about the same families. Which is a precise enough description of the global spectacle’s present vulgarity.”
—Guy Debord (b. 1931)