When are safe Pareto improvements individually rational?

(Soft prerequisites: A high-level model of AI bargaining and Taboo “equilibrium”: Less confused frames for research on AI bargaining.) Section II.1 of CLR’s safe Pareto improvements (SPI) agenda briefly reviews the challenges for making SPIs individually rational. Here, I’ll flesh out these challenges, taking renegotiation SPIs as a running example. The ideas here overlap a lot with DiGiovanni et al. (2024) and its distillation. But this post will hopefully be more accessible, and will consider ...