Bargaining in Bundle over Multiple Issues in Finite-Horizon Alternating-Offers Protocol

This paper provides an algorithm to compute the subgame perfect equilibrium strategies in perfect information finitehorizon alternating-offers bargaining in-bundle over multiple issues. We show that the agreement is achieved immediately and is Pareto efficient. We make a novel use of backward induction for multiple issues and we prove that, for linear multi-attribute utility functions, 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.

[1]  Stefan Napel,et al.  Bilateral Bargaining - Theory and Applications , 2002, Lecture notes in economics and mathematical systems.

[2]  Sarit Kraus,et al.  Strategic Negotiation in Multiagent Environments , 2001, Intelligent robots and autonomous agents.

[3]  Jeffrey S. Rosenschein,et al.  Rules of Encounter - Designing Conventions for Automated Negotiation among Computers , 1994 .

[4]  Katia Sycara,et al.  Literature Review on Multi-attribute Negotiations , 2004 .

[5]  R. Selten,et al.  A Generalized Nash Solution for Two-Person Bargaining Games with Incomplete Information , 1972 .

[6]  Tuomas Sandholm.  Agents in Electronic Commerce: Component Technologies for Automated Negotiation and Coalition Formation , 2004, Autonomous Agents and Multi-Agent Systems.

[7]  Narendra Karmarkar,et al.  A new polynomial-time algorithm for linear programming , 1984, Comb..

[8]  Nicholas R. Jennings,et al.  An agenda-based framework for multi-issue negotiation , 2004, Artif. Intell..

[9]  Tuomas Sandholm,et al.  Agents in Electronic Commerce: Component Technologies for Automated Negotiation and Coalition Formation , 1998, Proceedings International Conference on Multi Agent Systems (Cat. No.98EX160).

[10]  J. Hiriart-Urruty,et al.  Convex analysis and minimization algorithms , 1993 .

[11]  Lawrence M. Ausubel,et al.  Bargaining in Incomplete Information , 2002 .

[12]  Roberto Serrano,et al.  Agenda Restrictions in Multi-Issue Bargaining , 2004 .

[13]  A. Rubinstein,et al.  Bargaining and Markets , 1991 .

[14]  Jeffrey S. Rosenschein and Gilad Zlotkin.  Rules of Encounter , 1994 .

[15]  A. Rubinstein.  Perfect Equilibrium in a Bargaining Model , 1982 .

[16]  M. Curr.  In our case , 2001 .