At step t, agent i decides not to make a concession. He will take a risk if its opponent does not make a concession as well and they will run into a conflict.
Rosenschein & Zlotkin provided a way to measure the risk:
They also described it as:
Risk(i,t) = (utility agent 1 loses by conceding and accepting agent 2's offer) /
(utility agent 1 loses by not conceding and causing a conflict)
We can see from the risk function that the more concession you make, the more risk you take.
Zeuthen Strategy
Zeuthen Strategy proposes to balance the risks of agents in negotiation. In each step, the agent with a less risk should make a sufficient concession, until they make an agreement.
A Sufficient Concession is one that change the balance of risk between two agents. The agent which has made the sufficient concession should have higher risk than its opponent.
By using Zeuthen Strategy, agents may make an agreement which can maximal the product of utilities (Nash Product), but not the sum of utilities. (Pareto optimal)
The computationally complexity of Zeuthen Strategy is O(2^n).
A example?
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