Abstract
The common features of two interactive methods that can be used in multiple-party negotiations over continuous issues are studied. One method is based on finding jointly improving directions to the parties to move along and the other on making constraint proposals to the parties. The history and the related literature on the subject is briefly surveyed in order to position the methods within the field. The basic similarities and differences together with the possibility to use them jointly are studied from the point of view of single negotiation text concept. Potential application areas including facilitation agents in distributed artificial intelligence are suggested.
Similar content being viewed by others
References
Arrow, K., and G. Debreu. (1954). “Existence of Equilibrium for a Competitive Economy, ” Econometrica 22, 265–290.
Bazaraa, M. S., H. D. Sherali, and C. M. Shetty. (1993). Nonlinear Programming: Theory and Algorithms. New York: John Wiley and Sons.
Brams, S. J., and A. D. Taylor. (1996). Fair Division. Cambridge UK: Cambridge University Press.
Bronisz, P., L. Krus, and L. Lopuch. (1988). “MCBARG – A System Supporting Multicriteria Bargaining, ” Working Paper WP-88-115, IIASA, Austria.
Bui, T. X., and M. F. Shakun. (1996). “Negotiation Processes, Evolutionary Systems Design, and NEGOTIATOR, ” Group Decision and Negotiation 5(4–6), 339–353.
Ehtamo, H., and R. P. Hämäläinen. (1993). “A Cooperative Incentive Equilibrium for a Resource Management Problem, ” Journal of Economic Dynamics and Control 17, 659–678.
Ehtamo, H., and R. P. Hämäläinen. (1995). “Credibility of Linear Equilibrium Strategies in a Discrete Time Fishery Management Game, ” Group Decision and Negotiation 4, 27–37.
Ehtamo, H., R. P. Hämäläinen, P. Heiskanen, J. Teich, M. Verkama, and S. Zionts. (1999). “Generating Pareto Solutions in a Two-Party Setting: Constraint Proposal Methods, ” Management Science 45(12), 1697–1709.
Ehtamo, H., E. Kettunen, and R. P. Hämäläinen. (2001). “Searching for Joint Gains in Multi-Party Negotiations, ” European Journal of Operational Research 130(1), 54–69.
Ehtamo, H., J. Ruusunen, and R. P. Hämäläinen. (1989). “A Hierarchical Approach to Bargaining in Power Pool Management, ” IEEE Transactions on Automatic Control 34(6), 666–669.
Ehtamo, H., M. Verkama, and R. P. Hämäläinen. (1992). “On Contracting under Incomplete Information Using Linear Proposals, ” in Proceedings of the Fifth International Symposium on Dynamic Games and Applications. Grimentz, Switzerland, pp. 128–133.
Ehtamo, H., M. Verkama, and R. P. Hämäläinen. (1996). “On Distributed Computation of Pareto Solutions for Two Decision Makers, ” IEEE Transactions on Systems, Man, and Cybernetics – Part A: Systems and Humans 26(4), 498–503.
Ehtamo, H., M. Verkama, and R. P. Hämäläinen. (1999). “How to Select Fair Improving Directions in a Negotiation Model over Continuous Issues, ” IEEE Transactions on Systems, Man, and Cybernetics – Part C: Applications and Reviews 29(1), 26–33.
Fershtman C. (1990). “The Importance of the Agenda in Bargaining, ” Games and Economic Behavior 2, 224–238.
Fisher, R., and W. Ury. (1981). Getting to Yes: Negotiating Agreement Without Giving In. Boston: Houghton Mifflin.
Fukuyama, K., D. M. Kilgour, and K. W. Hipel. (1994). “Systematic Policy Development to Ensure Compliance to Environmental Regulations, ” IEEE Transactions on Systems, Man, and Cybernetics 24(9), 1289–1305.
Geoffrion, A. M., J. S. Dyer, and A. Feinberg. (1972). “An Interactive Approach for Multi-Criterion Optimization with an Application to Operation of an Academic Department, ” Management Science 19, 357–368.
Guttman, R., A. Moukas, and P. Maes. (2000). “Agent-Mediated Electronic Commerce: A Survey, ” Knowledge Engineering Review (to appear) (Downloadable at http://ecommerce.media.mit.edu/publications.html).
Haimes, Y. Y., K. Tarvainen, T. Shima, and J. Thadathil. (1990). Hierarchical Multiobjective Analysis of Large-Scale Systems. New York: Hemisphere Publishing Corporation.
Heiskanen, P. (1999a). “Decentralized Method for Computing Pareto Solutions in Multi-Party Negotiations, ” European Journal of Operational Research 117, 578–590.
Heiskanen, P. (1999b). “Generating Pareto-Optimal Boundary Points in Multi-Party Negotiations Using Constrain Proposal Method, ” Helsinki School of Economics and Business Administration Working papers W-229.
Heiskanen, P., H. Ehtamo, and R. P. Hämäläinen. (2001). “Constraint Proposal Method for Computing Pareto Solutions in Multi-Party Negotiations, ” European Journal of Operational Research (to appear).
Hämäläinen, R. P., E Kettunen, M. Marttunen, and H. Ehtamo. (2001). “Evaluating a Framework for Multi-Stakeholder Decision Support in Water Resources Management, ” Group Decision and Negotiation(to appear); An earlier version: “Towards Decision and Negotiation Support in Multi-Stakeholder Development of Lake Regulation Policy, ” Proceedings of the 32nd Hawaii International Conference on System Sciences, 1999, (http://dlib.computer.org/conferen/hicss/0001/pdf/00011065.pdf).
Kalai, E., and M. Smorodinsky. (1975). “Other Solutions to Nash's Bargaining Problem, ” Econometrica 43, 513–518.
Kersten, G. E. (1985). “NEGO-Group Decision Support System, ” Information and Management 8, 237–385.
Kersten, G. E. (1997). “Support for Group Decisions and Negotiations – An Overview, ” in J. Climaco (ed.), Multicriteria Analysis, Proc. of the XIth Int. Conf. on MCDM, August 1994. Coimbra, Portugal: Springer, pp. 332–346.
Kersten, G. E., and S. J. Noronha. (1999). “Supporting International Negotiation with a WWW-Based System, ” Decision Support Systems 25, 135–154.
Kettunen, E., R. P. Hämäläinen, and H. Ehtamo. (1998). “Joint Gains – Negotiation Support in the Internet, ” Computer Software, Systems Analysis Laboratory, Helsinki University of Technology, Finland. (http:// www.joingains.hut.fi).
Korhonen, P., H. Moskowitz, J. Wallenius, and S. Zionts. (1986). “An Interactive Approach to Multiple Criteria Optimization with Multiple Decision-Makers, ” Naval Research Logistics Quarterly 33, 589–602.
Korhonen, P., N. Oretskin, J. Teich, and J. Wallenius. (1995). “The Impact of a Biased Starting Position in a Single Negotiation Text Type mediation, ” Group Decision and Negotiation 4, 357–374.
Korhonen, P. J., and J. Wallenius. (1990). “Supporting Individuals in Group Decision-Making with an Application to Resource Pooling Within the Council of Mutual Economic Assistance, ” Theory and Decision 28, 313–330.
Korhonen, P., J. Wallenius, and S. Zionts. (1979). “A Bargaining Model for Solving the Multiple Criteria Problem, ” in G. Fandel, and T. Gal (eds.), Proceedings of the Third International MCDM Conference. Bonn: Königswinter.
Kuula, M. (1990). “RAMONA – Version 0.1: An Interactive Multiple Objective Negotiation Support System, ” Computer Program, Helsinki School of Economics, Finland.
Kuula, M. (1998). “Solving Intra-Company Conflicts Using the RAMONA-Interactive Negotiation Support System, ” Group Decision and Negotiation 7, 447–464.
Mumpower, J. (1988). “An Analysis of the Judgmental Components of Negotiation and a Proposed Judgmentally-Oriented Approach to Mediation, ” Human Judgment: The SJT View, 465–502.
Myerson, R. B. (1997). Game Theory. Cambridge, MA: Harvard University Press.
Nash, J. F. (1950). “The Bargaining Problem, ” Econometrica 18, 155–162.
Osborne, D. K. (1976). “Cartel Problems, ” The American Economic Review 66, 835–844.
Ponsati, C., and J. Watson. (1997). “Multiple-Issue Bargaining and Axiomatic Solutions, ” International Journal of Game Theory 26, 501–524.
Raiffa, H. (1982). The Art and Science of Negotiation. Cambridge, MA: Belknap/Harvard University Press.
Raith, M. G., and A. Welzel. (1998). “Adjusted Winner: An Algorithm for Implementing Bargaining Solutions in Multi-Issue Negotiations, ” Working Paper, Institute of Mathematical Economics, University of Bielefeld, Germany.
Rajabi, S., K. W. Hipel, and D. M. Kilgour. (1997). “Multiple Criteria Water Supply Planning, ” Proceedings of the 1997 IEEE International Conference on Systems, Man, and Cybernetics 4, October 1997, Orlando, FL, 3484–3489.
Sebenius, J. K. (1983). “Negotiation Arithmetic: Adding and Subtracting Issues and Parties, ” International Organization 37, 281–316.
Shakun, M. F. (1988). Evolutionary Systems Design: Policy Making Under Complexity and Group Decision Support Systems. Oakland, CA: Holden-Day.
Shakun, M. F. (1996). “Modeling and Supporting Task-Oriented Group Processes: Purposeful Complex Adaptive Systems and Evolutionary Systems Design, ” Group Decision and Negotiation 5(4–6), 305–317.
Sutton, J. (1986). “Non-Cooperative Bargaining Theory: An Introduction, ” Review of Economic Studies, LIII, 709–724.
Teich, J. E., H. Wallenius, M. Kuula, and S. Zionts. (1995). “A Decision Support Approach for Negotiation with an Application to Agricultural Income Policy Negotiations, ” European Journal of Operational Research 81, 76–87.
Teich, J. E., H. Wallenius, and J. Wallenius. (1994). “Advances in Negotiation Science, ” Yöneylem Arastirmasi Dergisi/Transactions on Operational Research 6, 55–94.
Teich, J. E., H. Wallenius, J. Wallenius, and S. Zionts. (1996). “Identifying Pareto-Optimal Settlements for Two-Party Resource Allocation Negotiations, ” European Journal of Operational Research 93, 536–549.
Teich, J. E. (1991). Decision Support for Negotiation. Ph.D. Dissertation, State University of New York at Buffalo, Buffalo, NY.
Varian, H. R. (1992). Microeconomic Analysis, 3rd edition. New York: W. W. Norton and Company.
Verkama, M., R. P. Hämäläinen, and H. Ehtamo. (1992). “Multi-Agent Interaction Processes: From Oligopoly Theory to Decentralized Artificial Intelligence, ” Group Decision and Negotiation 2, 137–159.
Verkama, M., H. Ehtamo, and R. P. Hämäläinen. (1996). “Distributed Computation of Pareto Solutions in n-Player Games, ” Mathematical Programming 74, 29–45.
Yu, P.-L. (1985). Multiple-Criteria Decision Making. New York: Plenum Press.
Zoutendijk, G. (1960). Methods of Feasible Directions: A Study in Linear and Non-Linear Programming. Amsterdam, The Netherlands: Elsevier Publishing Company.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Ehtamo, H., Hämäläinen, R.P. Interactive Multiple‐Criteria Methods for Reaching Pareto Optimal Agreements in Negotiations. Group Decision and Negotiation 10, 475–491 (2001). https://doi.org/10.1023/A:1012297813663
Issue Date:
DOI: https://doi.org/10.1023/A:1012297813663