The Invention of New Strategies in Bargaining Games

Abstract

Abstract Bargaining games have played a prominent role in modeling the evolution of social conventions. Previous models assumed that agents must choose from a predetermined set of strategies. I present a new model of two agents learning in bargaining games in which new strategies must be invented and reinforced. I study the efficiency and fairness of the model outcomes. The outcomes are somewhat efficient, but a significant part of the resource is wasted nonetheless. I implement two forms of forgetting, and restrictions to the set of strategies that can be invented.