Solving Bargaining Games by Differential Equations

Published Online:https://doi.org/10.1287/moor.15.4.724

“Solving Games by Differential Equations”: was the title of a paper by Brown and von Neumann (1950). The idea of solving bargaining games by differential equations goes back to Raiffa (1953). The present paper starts with a solution ϕ of a bargaining game and constructs, by means of solving a set of differential equations, a new solution Cϕ, the continuation of ϕ. A property is called hereditary when it holds for Cϕ whenever it holds for ϕ. Hereditary properties and properties of Cϕ in relation to properties of ϕ are studied. The paper includes a number of open problems.

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