wedrifid comments on Cooperating with agents with different ideas of fairness, while resisting exploitation - Less Wrong
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Solution concept implementing this approach (as I understand it):
Player X chooses Pareto fair outcome (X→X, X→Y), (X→Y can be read as "player X's fair utility assignment to player Y"), player Y chooses fair outcome (Y→X, Y→Y).
The actual outcome is (Y→X, X→Y)
(If you have a visual imagination in maths, as I do, you can see this graphically as the Pareto maximum among all the points Pareto worse than both fair outcomes).
This should be unexploitable in some senses, as you're not determining your own outcome, but only that of the other player.
Since it's not Pareto, it's still possible to negotiate over possible improvements ("if I change my idea of fairness towards the middle, will you do it too?") and blackmail is possible in that negotiation process. Interesting idea, though.
Conclusion: Stuart's solution is flawed because it fails to blackmail pirates appropriately.
Thoughts:
My intuition is more along the lines of:
Suppose there's a population of agents you might meet, and the two of you can only bargain by simultaneously stating two acceptable-bargain regions and then the Pareto-optimal point on the intersection of both regions is picked. I would intuitively expect this to be the result of two adapted Masquerade algorithms facing each other.
Most agents think the fair point is N and will refuse to go below unless you do worse, but some might accept an exploitive point of N'. The slope down from N has to be steep enough that having a few N'-accepting agents will not provide a sufficient incentive to skew your perfectly-fair point away from N, so that the global solution is stable. If there's no cost to destroying value for all the N-agents, adding a single exploitable N'-agent will lead each bargaining agent to have an individual incentive to adopt this new N'-definition of fairness. But when two N'-agents meet (one reflected) their intersection destroys huge amounts of value. So the global equilibrium is not very Nash-stable.
Then I would expect this group argument to individualize over agents facing probability distributions of other agents.
I'm not getting what you're going for here. If these agents actually change their definition of fairness based on other agents definitions then they are trivially exploitable. Are there two separate behaviors here, you want unexploitability in a single encounter, but you still want these agents to be able to adapt their definition of "fairness" based on the population as a whole?
I'm not sure that is trivial. What is trivial is that some kinds of willingness to change their definition of fairness makes them exploitable. However this doesn't hold for all kinds of willingness to change fairness definition. Some agents may change their definition of fairness in their favour for the purpose of exploiting agents vulnerable to this tactic but not willing to change their definition of fairness when it harms them. The only 'exploit' here is 'prevent them from exploiting me and force them to use their default definition of fair'.
Ah, that clears this up a bit. I think I just didn't notice when N' switched from representing an exploitive agent to an exploitable one. Either that, or I have a different association for exploitive agent than what EY intended. (namely, one which attempts to exploit)