Abstract
In this paper we study multi issue alternating-offers bargaining in a perfect information finite horizon setting, we determine the pertinent subgame perfect equilibrium, and we provide an algorithm to compute it. The equilibrium is determined by making a novel use of backward induction together with convex programming techniques in multi issue settings. We show that the agents reach an agreement immediately and that such an agreement is Pareto efficient. Furthermore, we prove that, when the multi issue utility functions are linear, the problem of computing the equilibrium is tractable and the related complexity is polynomial with the number of issues and linear with the deadline of bargaining.
Similar content being viewed by others
References
Cramton, P.C., Ausubel, L.M., Deneckere, R.J.: Handbook of Game Theory, vol. 3, Chap. Bargaining with Incomplete Information, pp. 1897–1945, Elsevier Science, Dordrecht, The Netherlands (2002)
Faratin, P., Sierra, C., Jennings, N.R.: Negotiation decision functions for autonomous agents. Robot. Auton. Syst. 24(3-4), 159–182 (1998)
Fatima, S.S., Wooldridge, M., Jennings, N.R.: An agenda-based framework for multi-issue negotiation. Artif. Intel. 152, 1–45 (2004)
Fudenberg, D., Tirole, J.: Game Theory. MIT Press, Cambridge, MA (1991)
Harsanyi, J.C., Selten, R.: A generalized Nash solution for two-person bargaining games with incomplete information. Manag. Sci. 18, 80–106 (1972)
Hiriart-Urruty, J.-B., Lemaréchal, C.: Convex Analysis and Minimization Algorithms I. Springer, Berlin Heidelberg New York (1996)
In, Y., Serrano, R.: Agenda restrictions in multi-issue bargaining. J. Econ. Behav. Organ. 53, 385–399 (2004)
Karmarkar, N.: A new polynomial-time algorithm for linear programming. Combinatorica 4(4), 373–395 (1984)
Kraus, S.: Strategic Negotiation in Multiagent Environments. MIT Press, Cambridge, MA (2001)
Lai, G., Li, C., Sycara, K., Giampapa, J.: Literature review on Multi-attribute Negotiations. Technical Report CMU–RI–TR–04–66, Carnegie Mellon University, (2004)
Napel, S.: Bilateral Bargaining: Theory and Applications. Springer, Berlin Heidelberg New York (2002)
Osborne, M.J., Rubinstein, A.: Bargaining and Markets. Academic, San Diego, CA (1990)
Peters, H.: Simultaneity of issues and additivity in bargaining. Econometrica 54(1), 153–170 (1986)
Raiffa, H.: The Art and Science of Negotiation. Harvard University Press, Cambridge, MA (1982)
Rosenschein, J.S., Zlotkin, G.: Rules of Encounter. In: Designing Conventions for Automated Negotiations among Computers. MIT Press, Cambridge, MA (1994)
Rubinstein, A.: Perfect equilibrium in a bargaining model. Econometrica 50(1), 97–109 (1982)
Sandholm, T.: Agents in electronic commerce: component technologies for automated negotiation and coalition formation. Autonomous Agents and Multi-agent Systems 3(1), 73–96 (2000)
Stahl, I.: Bargaining Theory. Stockholm School of Economics, Stockholm, Sweden (1972)
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Di Giunta, F., Gatti, N. Bargaining over multiple issues in finite horizon alternating-offers protocol. Ann Math Artif Intell 47, 251–271 (2006). https://doi.org/10.1007/s10472-006-9037-y
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10472-006-9037-y