Nash Bargaining and Co-Operatives

10 Pages Posted: 2 Jun 2006

See all articles by Edward Oczkowski

Edward Oczkowski

Charles Sturt University - Faculty of Commerce

Abstract

This paper develops the generalised Nash bargaining solution for a bargaining co-operative selling its output to a single buyer. Three assumptions for co-operative members' behaviour are examined: profit maximisation, co-operative surplus maximisation and maximising members' price. Solutions are compared and comparative statics presented for these alternative assumptions and the bargaining over price and quantity transacted. The most striking feature of the results is that pursuing the objective of maximising members' price does not necessarily lead to the highest members' price.

Suggested Citation

Oczkowski, Edward, Nash Bargaining and Co-Operatives. Australian Economic Papers, Vol. 45, No. 2, pp. 89-98, June 2006, Available at SSRN: https://ssrn.com/abstract=905622 or http://dx.doi.org/10.1111/j.1467-8454.2006.00279.x

Edward Oczkowski (Contact Author)

Charles Sturt University - Faculty of Commerce ( email )

Wagga Wagga, NSW 2678
Australia
061 02 69332521 (Phone)
061 02 69332125 (Fax)

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