Minimax-regret strategies for bargaining over several variables (Q1262188)

For the sealed-bid mechanism for bilateral bargaining, we explore models in which each player bids so as to minimize his maximum regret. Here regret is defined as the difference between the profit the player could have made with the wisdom of hindsight and the profit he actually made. We study bargaining over both price and quantity, as well as over more general sets of bargaining alternatives, with complete and incomplete information. In each case there is a minimax-regret strategy that is linear in the true value or cost, and the minmax regret is not ``unacceptably'' large.