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Main Authors: Florijn, Tamara C. P., Yolum, Pinar, Baarslag, Tim
Format: Preprint
Published: 2024
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Online Access:https://arxiv.org/abs/2404.19361
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author Florijn, Tamara C. P.
Yolum, Pinar
Baarslag, Tim
author_facet Florijn, Tamara C. P.
Yolum, Pinar
Baarslag, Tim
contents Automated negotiation is a well-known mechanism for autonomous agents to reach agreements. To realize beneficial agreements quickly, it is key to employ a good bidding strategy. When a negotiating agent has a good back-up plan, i.e., a high reservation value, failing to reach an agreement is not necessarily disadvantageous. Thus, the agent can adopt a risk-seeking strategy, aiming for outcomes with a higher utilities. Accordingly, this paper develops an optimal bidding strategy called MIA-RVelous for bilateral negotiations with private reservation values. The proposed greedy algorithm finds the optimal bid sequence given the agent's beliefs about the opponent in $O(n^2D)$ time, with $D$ the maximum number of rounds and $n$ the number of outcomes. The results obtained here can pave the way to realizing effective concurrent negotiations, given that concurrent negotiations can serve as a (probabilistic) backup plan.
format Preprint
id arxiv_https___arxiv_org_abs_2404_19361
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle A Negotiator's Backup Plan: Optimal Concessions with a Reservation Value
Florijn, Tamara C. P.
Yolum, Pinar
Baarslag, Tim
Computer Science and Game Theory
Artificial Intelligence
Automated negotiation is a well-known mechanism for autonomous agents to reach agreements. To realize beneficial agreements quickly, it is key to employ a good bidding strategy. When a negotiating agent has a good back-up plan, i.e., a high reservation value, failing to reach an agreement is not necessarily disadvantageous. Thus, the agent can adopt a risk-seeking strategy, aiming for outcomes with a higher utilities. Accordingly, this paper develops an optimal bidding strategy called MIA-RVelous for bilateral negotiations with private reservation values. The proposed greedy algorithm finds the optimal bid sequence given the agent's beliefs about the opponent in $O(n^2D)$ time, with $D$ the maximum number of rounds and $n$ the number of outcomes. The results obtained here can pave the way to realizing effective concurrent negotiations, given that concurrent negotiations can serve as a (probabilistic) backup plan.
title A Negotiator's Backup Plan: Optimal Concessions with a Reservation Value
topic Computer Science and Game Theory
Artificial Intelligence
url https://arxiv.org/abs/2404.19361