Partially monotonic bargaining solutions

The purpose of the paper is to study partially monotonic solutions for two-person bargaining problems. Partial monotonicity relates to the uncertainty a player has about the solution before bargaining. If the minimum utility a player can expect is greater in game T than in game S, and if T contains more alternatives than S, this may bring him to expect that his utility at the solution is greater in T than in S. Partially monotonic solutions reflect these expectations.One partially monotonic solution is axiomatized. The axioms of symmetry and independence of linear transformations are not explicitly assumed, although the solution has also these properties. The Kalai-Smorodinsky solution is shown to be the only continuous partially monotonic solution.This study was financed by the Yrjö Jahnsson Foundation, which is gratefully acknowledged. I like to thank an associate editor and a referee for their valuable suggestions, and the Yrjö Jahnsson Foundation Study Group on Public Economics for useful discussions