A mediation algorithm is a decision-making process where a neutral third-party agent or process intervenes to facilitate a mutually acceptable agreement between conflicting agents by suggesting compromises or evaluating proposals. It is a core component of multi-agent system orchestration, distinct from binding arbitration, as it aims for a collaborative solution rather than imposing one. The algorithm's logic typically involves analyzing agent preferences, utility functions, or bids to identify a Pareto-optimal outcome that improves upon the conflict state.
