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Draft Specification v1.2

Private (Bounded) Alignment Protocol (PBAP)

A multi-stage negotiation protocol for identifying value alignment between two parties without premature disclosure of private thresholds.

1. Definitions

Parties: Initiator (A) and Responder (B).

Threshold Range: A range [min, max] representing a party's "No Regret" zone.

Flexibility Spread (σ): A percentage (e.g., 20%) defining the maximum allowed expansion of the range.

Target Value (T): The ideal value at the center of the range.

2. Protocol Lifecycle

Phase I: Initialization & Commitment

Initiator A defines a target value TA and selects a flexibility spread (σ).

The system generates an initial range: [TA - σ, TA + σ].

This range is committed to the protocol.

Phase II: Secure Response

Responder B provides their target value TB.

The system generates their range using the same flexibility σ selected by the Initiator to ensure fairness.

Phase III: Overlap Verification (Round 1)

The protocol checks if the two ranges overlap.

Overlap Min = Maximum of both Minimums
Overlap Max = Minimum of both Maximums

If an overlap exists, the deal is COMPLETED. The final agreement value is the center point of the overlapping section.

Phase IV: Feasibility & Directional Disclosure

If the ranges do not overlap, the protocol checks for Bounded Feasibility. This determines if a deal is possible if both parties were to use their maximum flexibility.

Case: B is below A

Feasible if B's maximum possible range reaches A's minimum possible range.

Case: B is above A

Feasible if B's minimum possible range reaches A's maximum possible range.

If feasible, the protocol reveals a Directional Hint(e.g., "Party B is Above") to both parties. If not feasible, the protocol enters DEADLOCK and terminates without revealing any directional data.

3. Security Properties

Internal Comparison

Calculations are performed privately within the system. Ranges are never shared between parties. In a DEADLOCK state, no information (including the direction of the gap) is revealed.

Anti-Fishing Constraint

By locking the flexibility spread (σ) globally for the deal, a Responder cannot use a disproportionately large range to "fish" for the Initiator's budget.

Equitable Surplus Extraction

The use of overlap midpoints removes the first-mover disadvantage. Neither party can "win" the negotiation through aggressive anchoring; the protocol extracts the shared surplus equally.

4. Reference Implementation

The complete, open-source implementation of the BAP engine and this application is available on GitHub.

View Source on GitHub

This protocol is open for review.

For inquiries regarding the mathematical implementation, drop me a line or submit an issue on GitHub.