Multistage Arbitration Game with Random Offers pp. 409-418
Authors: Vladimir V. Mazalov, Minoru Sakaguchi and Anatoly A. Zabelin
Abstract: We consider here a two-person time-sequential game intended to model a competitive behaviors of two players who may have different aims. One of possible application of this game is a model labor-management negotiations during a given length of periods. In this model there are two players Labor (player I) and Management (player II) which must decide the monthly wage payed to I by II. Player I is interested to maximize it and, respectively, player II - minimize it. Negotiations among two players are made during a period [0, n] within which the final decision must be reached. There are a few models related with arbitration procedure [1-5]. Most of papers [1-4] analyze a model where offers are made by players and there is third independent participant - arbitration committee - which chooses one of them. In the article  a model with arbitration committee was considered which is composed of the two arbitrators and each arbitrator proposes a solution for the wage in each period as long as the negotiation continues. Another application is the secretary problem for the players having different aims [6, 7, 8]. Suppose that the same players I (Labor union) and II (Management) jointly employ one secretary. Player I(II) is interested to employ a secretary who has better ability in computer technology (management job). Finally, notice the cake division problem.