Accession Number:

AD0633739

Title:

EQUAL PROFITS AS A FAIR DIVISION

Descriptive Note:

Corporate Author:

YALE UNIV NEW HAVEN CT COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Personal Author(s):

Report Date:

1966-04-18

Pagination or Media Count:

20.0

Abstract:

This paper reports the results of a duopoly experiment in which each firm was represented by one subject, and the two subjects comprising a duopoly could send messages to one another prior to making their decisions. The questions to which the experiment is addressed are 1 To what extent are a pair of subjects able to agree on a joint course of action. 2 When subjects agree, is the profit point they agree upon Pareto optimal, and 3 Among Pareto optimal points chosen, does any particular point, such as the joint profit maximum, the Nash cooperative game solution, or the point of equal profits, predominate.

Subject Categories:

  • Economics and Cost Analysis
  • Statistics and Probability

Distribution Statement:

APPROVED FOR PUBLIC RELEASE