Dual-Issue Final-Offer Arbitration: Invariance of Pure Optimal Strategies Under Lp Metrics

Abstract

We consider a final-offer arbitration problem between two players with two quantitative issues in dispute. We model the problem as a zero-sum game where the arbiter’s opinion is drawn from a bivariate normal distribution and derive the only possible pure strategies regardless of the choice of [Formula: see text] metric used by the arbiter.