Bilateral Negotiation Game

Overview

This diagram shows the structure of a bilateral negotiation game using compositional game theory, modeling the corecursive nature of strategic interactions between two agents.

Diagram

Information Flow

1. Message Input: Counterparty message enters from the Environment
2. Context Building: Environmental state (Message Processor) and Agent state (Negotiation Context) combine to form Input Context
3. Decision Input: Integrated context flows to the Agent's Terminal Checker
4. Continuation: If not terminal, flow continues to Strategic Decision
5. Selection: Strategic Decision queries Model with selection function
6. Policy: Model returns policy to guide strategic response
7. Response Generation: Strategic decision produces a response message
8. Corecursive Loop: Response becomes the next counterparty message (returning to step 1)
9. Terminal Path: If terminal condition detected, negotiation outcome is determined
10. Utility Feedback: Outcome generates utility signals back to Agent (backward pass)
11. Experience Extraction: Agent extracts experience from the interaction
12. Policy Update: Experience updates the Model's policy store for future decisions

This flow shows how bilateral negotiations progress through repeated message exchanges (corecursive loop at step 8) until reaching terminal conditions, with continuous learning from outcomes.