Bilateral Negotiation Decisions with Uncertain Dynamic Outside Options

Cuihong Li, Joseph Andrew Giampapa, and Katia Sycara
IEEE Transactions on Systems, Man, and Cybernetics, Part C: Special Issue on Game-theoretic Analysis and Stochastic Simulation of Negotiation Agents, Vol. 36, No. 1, January, 2006


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Abstract
We present a model for bilateral negotiations that considers the uncertain and dynamic outside options. Outside options affect the negotiation strategies via their impact on the reservation price. The model is composed of three modules: single-threaded negotiations, synchronized multi-threaded negotiations, and dynamic multi-threaded negotiations. These three models embody increased sophistication and complexity. The single-threaded negotiation model provides negotiation strategies without specifically considering outside options. The model of synchronized multi-threaded negotiations builds on the single-threaded negotiation model and considers the presence of concurrently existing outside options. The model of dynamic multi-threaded negotiations expands the synchronized multithreaded model by considering the uncertain outside options that may come dynamically in the future. Experimental analysis is provided to characterize the impact of outside options on the reservation price and thus on the negotiation strategy. The results show that the utility of a negotiator improves significantly if she considers outside options, and the average utility is higher when she both considers the concurrent outside options and foresees future options.

Keywords
bilateral negotiations, multi-agent systems, model, strategy

Notes
Sponsor: NPRST
Grant ID: New York, NY
Associated Center(s) / Consortia: Center for Integrated Manfacturing Decision Systems
Associated Lab(s) / Group(s): Advanced Agent - Robotics Technology Lab
Number of pages: 13

Text Reference
Cuihong Li, Joseph Andrew Giampapa, and Katia Sycara, "Bilateral Negotiation Decisions with Uncertain Dynamic Outside Options," IEEE Transactions on Systems, Man, and Cybernetics, Part C: Special Issue on Game-theoretic Analysis and Stochastic Simulation of Negotiation Agents, Vol. 36, No. 1, January, 2006

BibTeX Reference
@article{Li_2006_4925,
   author = "Cuihong Li and Joseph Andrew Giampapa and Katia Sycara",
   editor = "Vladimir Marik and Mengchu Zhou",
   title = "Bilateral Negotiation Decisions with Uncertain Dynamic Outside Options",
   journal = "IEEE Transactions on Systems, Man, and Cybernetics, Part C: Special Issue on Game-theoretic Analysis and Stochastic Simulation of Negotiation Agents",
   publisher = "IEEE",
   address = "New York, NY",
   month = "January",
   year = "2006",
   volume = "36",
   number = "1",
}