Rational Inefficient Compromises in Negotiation

Authors:   Kersten GE, Mallory GR

Publication Year:   1998

Reference:  IIASA Interim Report IR-98-024

Abstract

It has often been assumed that rational negotiators who achieve inefficient compromises should accept Pareto improvements suggested by some external party, such as an expert mediator, or a computer system. Following this assumption an argument is made to give legitimacy to efficient compromises generated by a negotiation support system or to entice a partymove to a Pareto improvement. The simplificatons made in model construction on the one hand and the very narrow and limited considerations of rationality in present negotiation support systems on the other, suggest a different approach to support. This approach is based on engaging users to a sound process confronting them with their inconsisencies rather than providing solutions or promoting improvements.

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