3-Game Theory-Communication-Bargaining

bargaining

Bargaining {bargaining, games} {negotiation, arbitration}, or using third party to determine outcome fairly {arbitration, negotiation}, makes outcome independent of utility function, as well as independent of allowing other outcomes. In cooperative games and bargaining, one player often dominates.

bargaining set

Games have acceptable-outcome sets {bargaining set}.

Bowley point

In bargaining, player can assume other player will maximize outcome {Bowley point}. Games with no repeated play and incomplete information often reach the Bowley point, instead of Pareto optimum.

equal profits point

Bargaining can find point where outcomes are equal for both players {equal profits point}.

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Date Modified: 2022.0225