MCDM'05 - paper no. 20

 

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Application of multiple attribute stochastic dominance to selection of negotiation strategies in e-negotiations

Tomasz Wachowicz

Abstract:

It can be derived from the empirical works and some behavioral models that the negotiation strategy the parties use is one of the most important factors influencing the negotiation process and its outcome. Therefore the determination of the negotiation strategies that allow the negotiating subjects to best satisfy their goals is the major task for the mediator or the negotiation support system in the externally supported negotiations. In the paper Application of Multiple Attribute Stochastic Dominance to Selection of Negotiation Strategies in E-negotiations (T. Wachowicz) the author proposes describing the negotiation situation as a two-person game, the strategies of which correspond to all the possible negotiation strategies that the parties can apply during the negotiation process. This way we find, by determining the solution of the game, the efficient mix of negotiation strategies which maximizes the negotiation outcomes for both parties. To compare the payoffs given as the vectors of value distribution the author applies the model of multi-attribute stochastic dominance proposed by Zara? and Martel. To find the game solution the procedure for determining the negotiation set of the game with the combination of the Zaras and Martel model is applied. The general procedure for determining the negotiation game solution and a numerical example of this application based on the Inspire empirical dataset are also presented.

Reference index:

Tomasz Wachowicz, (2006), Application of multiple attribute stochastic dominance to selection of negotiation strategies in e-negotiations, Multiple Criteria Decision Making (1), pp. 319-336

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