AN ALTERNATIVE SOLUTION TO BARGAINING PROBLEMS WITH CLAIMS

An axiomatic characterization of a new egalitarian-type solution for b argaining problems with claims is provided. This claim-egalitarian sol ution 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 vio lates the individual rationality condition. The same problem occurs (e ven in the two-person case) if a larger class of problems is considere d. To avoid this shortcoming, an individually rational extension of th is solution is introduced and characterized.