1 THE KALAI-SMORODINSKY BARGAINING SOLUTION MANIPULATED BY PRE-

This study examines the manipulability of simple n-person bargaining problems by pre-donations where the Kalai-Smorodinsky (KS) solution is operant. We extend previous results on the manipulation of two-person bargaining problems to the n-person case. We show that with a pre-bargaining stage where agents are allowed to sign contracts that alter the bargaining set, agents with greater ideal payoffs transform the bargaining set into one on which KS distributes payoffs in accordance with the Concessionary Division Rule of disputed property. The resulting payoff distribution is efficient in that every individual is strictly better-off relative to the original payoff allocation