In patent litigation, the ruling against the 25% Rule has
led some plaintiff’s experts to search for a methodology
to replace it. Some of these experts are putting forward
claims based on a 50/50 split of profits by claiming that it
is the result of the Nash Bargaining Solution. This is not
only a misreading of Nash’s work; the economic community
has not accepted that Nash Bargaining is a good
predictor of outcomes in the real world. The 50/50 split
posited by Nash requires a set of assumptions that are
not true in actual negotiations. One valuable insight in
Nash Bargaining is that the parties are negotiating over
a surplus that is equal to the benefits achievable from
cooperating minus the sum of the payoffs each side is
able to get without cooperating.

Seminar Information
Seminar Date:
March 01, 2014
The Nash Bargaining Solution
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