Risk aversion for losses and the Nash bargaining solution

We call a decision maker risk averse for losses if that decision maker is risk aversewith respect to lotteries having alternatives below a given reference alternative intheir support. A two-person bargaining solution is called invariant under riskaversion for losses if the assigned outcome does not change after correcting for riskaversion for losses with this outcome as pair of reference levels, provided that thedisagreement point only changes proportionally. We present an axiomatic characterization of the Nash bargaining solution based on this condition, and we alsoprovide a decision-theoretic characterization of the concept of risk aversion forlosses