Chapter 14:Chapter 14:
Allocating Scarce Resources
With two player games, we had a
"one shot" decision with no way ofone shot decision with no way of
binding the negotiation. In this
chapter, we rethink those decisions.
How do agents reach agreements when they are self interested?
In an extreme case (zero sum encounter) no agreement is possible in
which both win -- but in most scenarios, there is potential for
mutually beneficial agreement on matters of common interesty f g
Example: handling an estate. How do you decide who gets what?
There is only one item than many may want.
Mechanisms, Protocols, and Strategies
Negotiation is governed by a particular mechanism, or