Practical bargaining procedures and their game-theoretic foundations

Game-theoretic models of bargaining can roughly be divided into two categories: cooperative and noncooperative. This paper will focus on the latter, but with an emphasis different from that found in most of the current literature. It will propose practical procedures for resolving conflicts, by which is meant defined and easily understood rules that facilitate two bargainers reaching a settlement that is beneficial to both in a two-person nonconstant-sum game of incomplete information. This is not to say that these procedures can readily be applied, although it will be illustrated how they might be implemented in the concluding section.