IntroductionToNegotiation

IntroductionToNegotiation - LECTURE7: ReachingAgreements An...

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7-1 LECTURE 7:  Reaching Agreements An Introduction to MultiAgent Systems http://www.csc.liv.ac.uk/~mjw/pubs/imas
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7-2 Reaching Agreements How do agents reaching agreements when they are self interested? In an extreme case (zero sum encounter) no agreement is possible — but in most scenarios, there is potential for mutually beneficial agreement on matters of common interest The capabilities of negotiation and argumentation are central to the ability of an agent to reach such agreements
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7-3 Mechanisms, Protocols, and  Strategies Negotiation is governed by a particular mechanism , or protocol The mechanism defines the “rules of encounter” between agents Mechanism design is designing mechanisms so that they have certain desirable properties Given a particular protocol, how can a particular strategy be designed that individual agents can use?
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7-4 Mechanism Design Desirable properties of mechanisms: Convergence/guaranteed success Maximizing social welfare Pareto efficiency Individual rationality Stability Simplicity Distribution
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7-5 Auctions An auction takes place between an agent known as the auctioneer and a collection of agents known as the bidders The goal of the auction is for the auctioneer to allocate the good to one of the bidders In most settings the auctioneer desires to maximize the price; bidders desire to minimize price
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7-6 Auction Parameters Goods can have private value publi c/ common value correlated value Winner determination may be first price second price Bids may be open cry sealed bid Bidding may be one shot ascending descending
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7-7 English Auctions Most commonly known type of auction: first price open cry ascending Dominant strategy is for agent to successively bid a small amount more than the current highest bid until it reaches their valuation, then withdraw Susceptible to: winner’s curse shills
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7-8 Dutch Auctions Dutch auctions are examples of open-cry descending auctions: auctioneer starts by offering good at artificially high value auctioneer lowers offer price until some agent makes a bid equal to the current offer price the good is then allocated to the agent that made the offer
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7-9 First-Price Sealed-Bid Auctions First-price sealed-bid auctions are one-shot auctions : there is a single round bidders submit a sealed bid for the good good is allocated to agent that made highest bid winner pays price of highest bid Best strategy is to bid less than true valuation
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7-10 Vickrey Auctions Vickrey auctions are: second-price sealed-bid Good is awarded to the agent that made the highest bid; at the price of the second highest bid Bidding to your true valuation is dominant strategy in Vickrey auctions Vickrey auctions susceptible to antisocial behavior
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7-11 Lies and Collusion
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This note was uploaded on 11/18/2011 for the course EEL 6788 taught by Professor Boloni,l during the Spring '08 term at University of Central Florida.

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IntroductionToNegotiation - LECTURE7: ReachingAgreements An...

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