Learning Negotiation Support Systems in Competitive Negotiations: A Study of Negotiation Behaviors and System Impacts

International Journal of Intelligent Information Technologies, Vol. 5, No. 1, pp. 1-23, 2009

34 Pages Posted: 26 May 2006 Last revised: 10 Dec 2008

See all articles by Manish K. Agrawal

Manish K. Agrawal

University of South Florida - College of Business Administration

Kaushal Chari

University of South Florida - College of Business Administration

Date Written: March 2009

Abstract

Prior research on negotiation support systems (NSS) has paid limited attention to the information content in the observed bid sequences of negotiators. Cognitive characteristics of individual negotiators and their impacts on negotiation performance have also received limited attention. In this paper, we examine the accuracy of an exponential functional form in representing observed bid sequences. Results indicate that the exponential function is a good model for observed bids. To leverage the information content in observed bids, we predict reservation values of negotiators based on their observed bids. Based on the negotiation behaviors of human subjects, we find that accurate estimates of opponent reservation values lead to improved negotiation outcomes. Results also show that bids are correlated with reservation values. We study the impact of negotiation support systems in helping users realize superior negotiation outcomes. Results indicate that automated negotiations using NSS can lead to superior negotiation outcomes compared to human subjects.

Keywords: Automated Negotiations, Software Agents, Cognitive Limitations, Experimental Economics, Negotiation Support Systems

Suggested Citation

Agrawal, Manish K. and Chari, Kaushal, Learning Negotiation Support Systems in Competitive Negotiations: A Study of Negotiation Behaviors and System Impacts (March 2009). International Journal of Intelligent Information Technologies, Vol. 5, No. 1, pp. 1-23, 2009, Available at SSRN: https://ssrn.com/abstract=904619

Manish K. Agrawal

University of South Florida - College of Business Administration ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States

Kaushal Chari (Contact Author)

University of South Florida - College of Business Administration ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States

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