Conditional preferences for social systems

Abstract

The design of artificial decision-making systems must be founded on some notion of rationality. Conventional multi-agent decision-making methodologies, such as von Neumann-Morgenstern game theory, are based on the paradigm of individual rationality, which requires decision makers to take the action that is for themselves, regardless of its effect on other decision makers. Relaxing the demand for the best possible decision, however, opens the way to accommodate the preferences of others. Satisficing game theory is a new approach to multi-agent decision making that permits decision makers to adjust their preferences in a controlled way to give consideration to others by permitting conditional preferences whereby a decision maker is able to adjust its preferences as a function of the preferences of others.