Two support results for the Kalai-Smorodinsky solution in small object division markets

We discuss two support results for the Kalai-Smorodinsky bargaining solution in the context of an object division problem involving two agents. Strategic interaction determines an allocation of objects, so that evaluation with individual utilities constitute the pay-offs in the derived games. These allocations of objects are obtained through individual demand in a specific market for objects. For the first support result, games in strategic form are derived that exhibit a unique Nash equilibrium and equilibrium payoffs equal the Kalai-Smorodinsky solution of the underlying bargaining problem. The second result uses subgame perfect equilibria of a game in extensive form. Again, payoffs in any subgame perfect equilibrium coincide with the Kalai-Smorodinsky solution. (C) 2008 Elsevier B.V. All rights reserved.