Nash Bargaining via Flexible Budget Markets

The bargaining situation is modeled as two people with their "happiness functions" (with a bunch of assumptions on continuity and convexity).
When it comes to results, this kind of analysis may lead to interesting curiosities, but not economic truths.

There is no "right" solution in bargaining. Any solution where the two players are happy with the exchange is a good solution.
Whether one player gets a better deal than the other is a question of bargaining skills, not maths or algorithms.

Great topic, too often mistakes in language and definitions spoil the presentation.
Tour of torture

bored