We look for ways that the frontier is secretly just a saddle point and we can actually push the frontier out farther than we naively modeled when we weren’t there looking at it up close. This has worked incredibly well since the start of the industrial revolution.
I feel like that strategy is unsustainable in the long term. Eventually the cost of the search will get more and more expensive as the lower hanging fruit get picked.
They switch to negotiating for allocation. But yeah, it’s weird because there’s no basis for negotiation once both parties have committed to playing on the Pareto frontier.
I feel like in practice, negotiation consists of provisional commitments, with the understanding that both parties will retreat to their BATNA if negotiations break down.
Maybe one can model negotiation as a continuous process that approaches the Pareto frontier, with the allocation changing along the way.
So what happens to mistake theorists once they make it to the Pareto frontier?
We look for ways that the frontier is secretly just a saddle point and we can actually push the frontier out farther than we naively modeled when we weren’t there looking at it up close. This has worked incredibly well since the start of the industrial revolution.
I feel like that strategy is unsustainable in the long term. Eventually the cost of the search will get more and more expensive as the lower hanging fruit get picked.
They switch to negotiating for allocation. But yeah, it’s weird because there’s no basis for negotiation once both parties have committed to playing on the Pareto frontier.
I feel like in practice, negotiation consists of provisional commitments, with the understanding that both parties will retreat to their BATNA if negotiations break down.
Maybe one can model negotiation as a continuous process that approaches the Pareto frontier, with the allocation changing along the way.