The conservative Kalai–Smorodinsky solution for multiple scenario bargaining

In this paper we address two-person bargaining problems under uncertainty where several states of nature or future scenarios are considered. We propose a solution concept based on the distance to a utopia minimum outcome vector, which guarantees conservative levels of achievement for the agents. We also provide an axiomatic characterization for a significant class of these bargaining problems. An extension of the classic model of firm-union negotiation, which includes situations where uncertainty about the consequences of the agreements have to be taken into account, is analyzed in this framework.