An automated negotiation mechanism based on co-evolution and game theory

Abstract

The problems associated with current automated negotiation approaches are of little feasibility in practical industry applications. This paper describes a new method that combines a game theory approach and a co-evolutionary approach to support an effective negotiation model for agents to resolve conflict. Under this proposed method, the agents without knowing the other agent's strategies and payoffs, produce an optimised resolution that complies Nash equilibrium and Pareto efficiency concepts. We use a finitely repeated prisoner's dilemma game to demonstrate the proposed method.