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Author
Fiala Petr (University of Economics in Prague, Czech Republic), Wachowicz Tomasz (University of Economics in Katowice, Poland)
Title
Applying a First Price Auction Mechanism for Supporting Multi-bilateral Negotiations
Source
Multiple Criteria Decision Making / University of Economics in Katowice, 2010, vol. 5, s. 63-79., tab., bibliogr. 11 poz.
Keyword
Aukcja pierwszej ceny, Podejmowanie decyzji, Negocjacje, Systemy wspomagania decyzji
First price auction, Decision making, Negotiations, Decision Support Systems (DSS)
Note
summ.
Korespondencja z redakcją: numeracja wpisana za zgodą redakcji (wynika z ciągłości wydawniczej serii MCDM) - brak numeracji na stronie tytułowej
Abstract
In this paper we consider a multi-bilateral negotiation problem from the perspective of all involved parties that we call the seller and the buyers. We model the negotiation process as a sequentially repeated first price auction. Since we consider a multi-issue negotiation, we do not operate with a bidding price as a single evaluation criterion but with a utility of the package (negotiation offer). To construct the optimal negotiation strategy we apply the notion of equilibrium bidding strategy. The parties' negotiation strategies are represented as vectors of bids for successive negotiation phases. The negotiation strategies are then used by a simple spreadsheet-based negotiation support tool for finding the most satisfying solution of the negotiation process. The software acts as a simple agent that converts the strategies into the values of the bids and then into the negotiation offers that maximize the payoffs of the buyer. The compromise is represented by the first bid that satisfies the current seller's aspiration level.
Accessibility
The Main Library of the Cracow University of Economics
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
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Bibliography
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ISSN
2084-1531
Language
eng
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