Nash's Bargaining Solution: Redefining Disagreement and Decision-Making in Society
The article discusses a model created by Nash in 1950 to solve bargaining situations between two or more people. The model uses utility functions to represent preferences over different options. In these situations, there is usually a disagreement point, known as the status quo. The model maps these preferences onto an n-dimensional space, where a solution is found by selecting a point that satisfies certain conditions. The main goal of the study was to develop a method for reaching fair agreements in negotiations, based on the preferences of all parties involved.