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image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Games and Economic B...arrow_drop_down
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
Games and Economic Behavior
Article . 2001 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
image/svg+xml Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao Closed Access logo, derived from PLoS Open Access logo. This version with transparent background. http://commons.wikimedia.org/wiki/File:Closed_Access_logo_transparent.svg Jakob Voss, based on art designer at PLoS, modified by Wikipedia users Nina and Beao
zbMATH Open
Article . 2001
Data sources: zbMATH Open
DBLP
Article . 2001
Data sources: DBLP
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Leveled Commitment Contracts and Strategic Breach

Leveled commitment contracts and strategic breach
Authors: Tuomas Sandholm; Victor R. Lesser;

Leveled Commitment Contracts and Strategic Breach

Abstract

The importance of automated negotiation systems with self-interested agent is increasing intensely, being supported by the technological support of the growing communication infrastructure (Internet, WWW, EDI, HTML etc.). In non-cooperative game theory, self-interested agents try to deal with the probabilistically known future events by using contingencv contracts but this formalism proved to be often impractical. In order to avoid the drawbacks of the contingency contracts, the present paper propose the mechanism of leveled commitment contracts (LCC), in which (a) the level of commitment is set by breach penalties, and (b) an agent simply pays the penalty to the other party, in order to be freed. On the basis of such a breach strategy, the authors show that the leveled commitment increases the expected payoff to both contract parties and enable deals that are impossible under full commitment. The paper is organized as follows; Section 2 presents the main new models and an analysis of LCC. LCC are shown to improve the expected payoff of both contract parties for games where both agents' futures involve uncertain events. While Section 2 provides a thorough analysis of the simultaneous decommitting mechanisms, Section 3 discusses the Nash equilibrium decommitting strategies. Section 4 examines settings where only one agents' future involves uncertain events, and Section 5 considers games where the fall-back positions change for the worse before the decommitting game. Section 6 presents what happens when an agent estimates that the distributions of future events are common knowledge and acts according to the equilibrium derived under that assumption, but in reality at least one of the agents has biased beliefs. Section 7 provides practical prescriptions for the market designers; Section 8 concludes and outlines the research directions.

Keywords

non-cooperative games, market design, Labor market, contracts, bargaining, 2-person games, automated negotiation, multiagent systems, breach strategies, Other game-theoretic models, Cooperative games, contingency contracts, economics of uncertainty, leveled commitment contracts

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
60
Top 10%
Top 1%
Top 10%
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