Automated Bilateral Negotiation and Bargaining Impasse

Abstract

The design and implementation of autonomous negotiating agents involve the consideration of insights from multiple relevant research areas to integrate different perspectives on negotiation. As a starting point for an interdisciplinary research effort, this paper employs game-theoretic techniques to define equilibrium strategies for the bargaining game of alternating offers and formalizes a set of negotiation strategies studied in the social sciences. This paper also shifts the emphasis to negotiations that are "difficult" to resolve and can hit an impasse. Specifically, it analyses a situation where two agents bargain over the division of the surplus of several distinct issues to demonstrate how a procedure to avoid impasses can be utilized in a specific negotiation setting. The procedure is based on the addition of new issues to the agenda during the course of negotiation and the exploration of the differences in the valuation of these issues to capitalize on Pareto optimal agreements.