Thanks for the reference.
You can check the assumptions used, but I think they match up to this scenario.
I read through to find the assumptions. It introduces the ability for either party to make precommitments (page 130) and a four stage negotiation process.
It introduces the ability for either party to make precommitments (page 130)
So it applies to perfectly rational agents.
and a four stage negotiation process.
A bit later he gives an alternate derivation.
The assumption in the actual document is that there is an umpire of some sort which can be relied on to enforce the pre-commitments.
Thanks for the reference.
I read through to find the assumptions. It introduces the ability for either party to make precommitments (page 130) and a four stage negotiation process.
So it applies to perfectly rational agents.
A bit later he gives an alternate derivation.
The assumption in the actual document is that there is an umpire of some sort which can be relied on to enforce the pre-commitments.