AN ALTERNATIVE SOLUTION TO BARGAINING PROBLEMS WITH CLAIMS

An axiomatic characterization of a new egalitarian-type solution for bargaining problems with claims is provided. This claim-egalitarian solution selects the weakly Pareto optimal point in the feasible set such that the losses of all agents from their respective claims are equal. If there are more than two agents, the claim-egalitarian solution violates the individual rationality condition. The same problem occurs (even in the two-person case) if a larger class of problems is considered. To avoid this shortcoming, an individually rational extension of this solution is introduced and characterized.