This paper introduces a class of endogenously proportional bargaining solutions. These solutions are independent of the class of Directional solutions, which Chun and Thomson (1990a) proposed to generalize (exogenously) proportional solutions of Kalai (1977). Endogenously proportional solutions...

In this paper we borrow from Ciarreta and Gutierrez-Hita (2012) a duopolistic industry structure with cost asymmetry and demand uncertainty, and using this structure we build a bargaining model to study the division of collusion profits - obtained from the joint selection of supply functions -...