Bargaining solutions are considered which have the following four properties: individual rationality, Pareto optimality, independence of equivalent utility representations, and independence of irrelevant alternatives. A main result of this paper is a simple proof of the fact that all such bargaining solutions are risk sensitive. Further a description is given of all bargaining solutions satisfying the four mentioned properties. Finally, a continuous bargaining solution, satisfying the first three properties, is given which is not risk sensitive.,
Mathematical Social Sciences
Department of Technology and Operations Management

de Koster, M.B.M, Peters, H.J.M, Tijs, S.H, & Wakker, P.P. (1982). Risk sensitivity, independence of irrelevant alternatives and continuity of bargaining solutions. Mathematical Social Sciences, 4(3), 295–300. doi:10.1016/0165-4896(83)90031-8