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Using Evolutionary Algorithms to study Bargaining Problems

The objective of this research is to tackle bargaining problems with Evolutionary Algorithms (EA). EA have been proved effective for a wide variety of problems. In this paper, we apply EA to solve Rubinstein’s Basic Alternating-Offer Bargaining Problem whose game-theoretic solution is known. Experimental outcomes suggest that EA are able to generate convincing approximations of the theoretic solutions. The establishment of EA being a practical method for solving this bargaining problem helps to support the plan of studying bargaining situations whose theoretic solutions are unknown. EA’s advantages in flexibility make it relatively easy to be applied to variant of Rubinstein Bargaining Problems and complex bargaining situations.