Bargaining theory is a framework within economics and game theory that analyzes how individuals or groups negotiate and reach agreements over the allocation of resources, goods, or services. It examines the strategies, behaviors, and outcomes of bargaining situations, where parties have conflicting interests or preferences but seek to find a mutually acceptable solution. Key components of bargaining theory include: 1. **Players**: The individuals or parties involved in the negotiation. They may have different objectives, needs, and available resources.
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