# Tag Info

Accepted

### Why is bartering uncommon in modern countries?

The main likely reasons why barter is not more common are: The inconvenience of having to find another party who both offers what you want and wants what you offer. Even if such a party can be ...
• 8,369

### Why is bartering uncommon in modern countries?

In the countries that I am familiar with (such as Canada), using barter to avoid taxes is definitely illegal. You are required to report the dollar value of the exchange as revenue. It is treated as ...
• 9,907
Accepted

### Axiomatic Bargaining: Kalai-Smorodinsky and Nash solutions coincide

Another sufficient condition for the two solutions to coincide, which is not necessarily the same as symmetry, is that the feasible set $S$ be rectangular. That is, S=\text{convex ...
• 15.4k
Accepted

### Why is bargaining more common in poor countries?

Time is money When the average daily wage is 5 dollars, and many others survive on 1-2 dollars a day, it's worth it to many people to take a few minutes to try to get an extra nickel or dime out of ...
• 626

### Why is bargaining more common in poor countries?

I think the best approach to describe this phenomenon is to see it as a change from relational-oriented economics of poor countries (developing countries) to transactional-oriented economics of ...
• 462

### Computation of Different Axiomatic Barganing Solutions

The answer depends on the "following solution concepts", which you did not specify. I guess the Nash solution and the Kalai-Smorodinsky solution will be among them. The frontier functions you seem to ...
• 6,805
1 vote

### How to achieve the best outcome by a single statement in this game?

Here is a proof that the response given by Schelling in Eric’s answer is (as good as) the best A can do. A can only do so much in retaliation for B and C teaming up against him. He can threaten to ...
• 640
1 vote

### How to achieve the best outcome by a single statement in this game?

Schelling himself gave an answer for Q1 in which A can achieve a surviving probability arbitrarily close to 5/6. I quote the book below. The wording is painfully tortuous at times. But the answer ...
• 131
1 vote

### Why is bartering uncommon in modern countries?

It doesn't save money. Keep in mind that revenue taxes are calculated after deduction of expenses. So if I sell something for 50€, and buy something for 50€, the total earnings of my company have not ...

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