Abstract
Bargaining is about how to split a pie between two persons. This paper reveals the inconsistency of the Rubinstein (1982) bargaining model. Its algebra is not correctly reflected by his Edgeworth box. Although an Edgeworth box guarantees complete exhaustion of the resource, it contains two pies. The Cournot competition model, the underlying theory of the Rubinstein model, leads to deadlock without agreement.
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