Stuart_Armstrong comments on Cooperating with agents with different ideas of fairness, while resisting exploitation - Less Wrong Discussion
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If I'm determining the outcome of the other player, doesn't that mean that I can change my "fair point" to threaten the other player with no downside for me? That might also lead to blackmail...
Indeed! And this is especially the case if any sort of negotiations are allowed.
But every system is vulnerable to that. Even the "random dictator", which is the ideal of unexploitability. You can always say "I promise to be a better (worse) dictator if you (unless you) also promise to be better".