Every point in this set is a Pareto optimum, so the outcome is based on how we choose the Pareto optimum, which is under specified.
Recurse, using the agent’s concepts of fairness, using the new Pareto set as the set of possibilities? And continue until the set stabilises? And then the agents will be truly indifferent between the outcomes.
The problem is that our original set was a product of the actions available to the players, so they were able to cut things off using their own actions. When you restrict to the Pareto frontier, this is no longer the case.
Recurse, using the agent’s concepts of fairness, using the new Pareto set as the set of possibilities? And continue until the set stabilises? And then the agents will be truly indifferent between the outcomes.
The problem is that our original set was a product of the actions available to the players, so they were able to cut things off using their own actions. When you restrict to the Pareto frontier, this is no longer the case.