Question

Recall Nash's solution to the bargaining game. One of the conditions he proposed for deriving his solution was the principle of irrelevant alternatives, holding that the solution to the bargaining problem does not depend on whether irrelevant strategies (i.e. strategies that are not preferred by any player) are removed or added to the set of alternative strategies. Can you construct a realistic scenario in which this condition is violated?

   Recall Nash's solution to the bargaining game. One of the conditions he proposed for deriving his solution was the principle of irrelevant alternatives, holding that the solution to the bargaining problem does not depend on whether irrelevant strategies (i.e. strategies that are not preferred by any player) are removed or added to the set of alternative strategies. Can you construct a realistic scenario in which this condition is violated?
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An Introduction to Decision Theory
An Introduction to Decision Theory
Martin Peterson 1st Edition
Chapter 12, Problem 3 ↓

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Suppose there are two players, Alice and Bob, who are negotiating the division of a cake. The cake can be divided into two pieces, A and B, with A representing the larger portion and B representing the smaller portion. Now, let's consider a scenario where the  Show more…

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Recall Nash's solution to the bargaining game. One of the conditions he proposed for deriving his solution was the principle of irrelevant alternatives, holding that the solution to the bargaining problem does not depend on whether irrelevant strategies (i.e. strategies that are not preferred by any player) are removed or added to the set of alternative strategies. Can you construct a realistic scenario in which this condition is violated?
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