In a bargaining solution, a player's net surplus is
A)the amount of total surplus minus any deadweight loss.
B)the difference between what the player receives in the final bargain minus what she would have gotten from the disagreement point.
C)the amount of consumer surplus she receives minus any deadweight loss.
D)always maximized.

Question

Quizplus · Accepted Answer

A player's net surplus in a bargaining solution is the difference between what they receive in the final bargain and what they would have gotten from the disagreement point. This measures the player's gain from reaching an agreement rather than walking away. Option A is incorrect because deadweight loss does not necessarily exist in a bargaining scenario. Option C is incorrect because bargaining solutions can involve sellers as well as buyers, so the term "consumer" surplus is not applicable. Option D is incorrect because a player's net surplus is not always maximized, as it depends on the specifics of the bargaining situation.

In a Bargaining Solution, a Player's Net Surplus Is