"The Bargaining Problem"

"The Bargaining Problem" is a concept in game theory that explores how two or more parties can reach a mutually beneficial agreement. It examines the process of negotiating terms when each party has preferences and alternatives, aiming to find a fair division of resources or outcomes. The problem considers factors like each party's bargaining power and what happens if negotiation fails (their outside options). Essentially, it seeks to understand how people can efficiently and fairly split benefits or costs through negotiation, balancing individual interests with collective outcomes.