A Solution to Bargaining Problem on Divisible Goods

Abstract

Two-person bargaining problem is considered as to allocate a number of goods between two players. This paper suggests that any non-trivial division of goods cause a non-zero change on the solution of bargaining. So, a axiom of sharing division is presented, as an alternative axiom to Nash axiom of independence of irrelevant alternatives and Kalai-Smorodinsky axiom of monotonicity. This solution is targeted at the partialities of Nash and Kalai-Smorodinsky solution on some specific issues, but not to say it is better than others.