The Nash Solution for Extended Ntu Sharing Problems

This paper provides an extension of the Nash solution to NTU bargaining and rationing problems, allowing for non-convex, non-smooth utility possibility sets. We do so by interpreting the Nash solution as the maximiser of a weighted utilitarian social welfare function, in which the weights are endogenously determined so that all agents weighted utility gains or losses are equal. The key tool for this extension is the use of Clarke cones that allows ensuring that this solution is well defined. We also show that Nash’s original characterisation still applies to this extended framework