Negotiation protocol

The negotiation protocol is the way and manner the negotiating parties interact and exchange information. It includes the way in which offers and messages are constructed and send to the opponent.

At present INSS allows to construct a protocol from three options listed below. Soon additional options will become available that will greatly enhance the INSS flexibility and ability to support complex and real-life negotiations. The list of options considered for the INSS is given below followed by their more detailed explanations. Note that some of the options can be used in conjunction with other options.

List of options

1. "Parallel" negotiations Implemented
2. Sequential negotiations Implemented
3. Unstructured messages
- Complementing offers
Implemented
- Replacing some offers
Implemented
4. New values for continuous issues Implemented
5. New values for discrete and ordered issues
6. Best Alternative to the Negotiated Agreement (BATNA) Implemented
7. Different options for different negotiating sides
8.Different issues for different negotiating sides
9. New issues

How to choose?

Because the additional options listed above are not yet implemented you don't need to choose any specific protocol now. The three options already implemented provide you with additional flexibility in conducting negotiations. Be aware that even if you decide to conduct negotiations using only one option your partner may not do so. For example, you may want to negotiate in a parallel manner but your partner may present always incomplete offers offers. It is then up to you and your partner to decide how the negotiation is conducted.

Option description

Parallel negotiations

Parallel negotiations allow negotiators to exchange only complete packages. That is each side has to either present an offer containing all the issues or not propose an offer at all. Parallel negotiations are often more difficult than sequential negotiations because negotiators have to think about all the issues at the same time. Moreover, it is also difficult to compare offers that may differ not in one value (issue) but in all issues at the same time. However, the use of preference values and the contsruction of the utility function allows users to compare offers easily as each offer is assigned a rating that is based onm the user's preferences.

The parallel negotiation option is the only one allowed for the INSPIRE system. INSS allows for both complete and incomplete packages, that is for sequential and parallel negotiations. Because it would be difficult to match neoptiongotiators that want to use differente and incompatible protocols, as it is the case with parallel and sequential negotiations, we have decided to provide the option which allows for both protocols and left it to the users to decide on the specific option. Thus it is up to you and your partner to decide how you want to use the INSS system with respect to the completeness of the offers.

Sequential negotiations

Sequential negotiations allow for one or more issues negotiated at a time. In this situation the participants may present an offer that consists of only one, two, or more issues and their options. That is they need not to present a complete package covering all the issues to be negotiated. Sequential negotiations are very often used in real life. This is not because they are preferred or more efficient than "parallel" negotiations when complete pacakages are negotiated. On the contrary sequentai negotiations are often less eficient and more risky than parallel, but they require less negotiating knowledge and less effort, appear to be simpler and easier to conduct. More about sequential negotiations can be found in Lewicki and Litterer You may also read an interesting case in Lewicki and Litterer of a failed negotiations primarily because one party was not very experienced and engaged in sequential process.

Unstructured messages

Many negotiation support systems allow for echange of offers only. In those systems users submit a package but cannot provide their partners with arguments, explanations and other statements about their and their partners offers. The INSS system provides a facility similar to email, where users may compose messages and send them to their negotiating partners. These messages may be send together with an offer or athe user may sent a message instead of an offer.

Messages complementing offers are sent together with an offer. They often contain a justification for the offer they accompany and possibly arguments for rejecting the opponent's previous offer. They may also contain additional information the that user may want to convey to his or her partner.

Messages replacing offers are send instead of an offer. At any point in time, the user may want to discuss other issues other than the offer, ask for clarifications, prompt the opponent for action, or explain the situation or discuss the protocol with the partner.

New values for continuous issues

This option will allow to enter any value for a continuous issue other than the values specified at the beginning of negotiations. The continuues issue are those for which intermediate values make sense. Price, for example, is a continuous issue. The initial values may be $ 10, 420 and $30. This option allows users to enter value of, for example, $15 which initilaly has not been an option. Here we will also allow quasi-continuos issues which are naturally ordered but for which ratios or some other numbers make no sense. For example, such an issue is the project completion time, or product delivery time. It does not make sense to talk about delivery time of 1.75 days. However, we will leave this problem to the users and assume that they will select numbers that make sense in their negotiations. An important problem that has to be mentioned here is the approximation of the utility. The utility function that is determined during the pre-negotiation phase has to be interpolated with new options being specified.

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Last modified: Wed Nov 21 16:24:09EST 1996 by GEK. Please send us your comments!