Comment by jmward01

I have noticed this algorithm in many places which is why I think it is a missing piece in game theory and why formalizing it could be powerful. People use this instinctively in their interactions with others and algorithms (like the one you pointed out) have been created using the basic concept so a formalization of the math is likely in order. Consider the question of how big the offering should be. What if all parties are actually getting the optimum result, what mechanism stops the increase/why? Does it stop? Could this lead to both parties paying the other larger and larger sums forever? It is a fun thing to think about at least.