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Evolutionary Algorithm Approach to Bilateral Negotiations

  • Vinaysheel Baber
  • Rema Ananthanarayanan
  • Krishna Kummamuru
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 2278)

Abstract

The Internet is quickly changing the way business-to-consumer and business-to-business commerce is conducted. The technology has created an opportunity to get beyond single-issue negotiation by determining sellers’ and buyers’ preferences across multiple issues, thereby creating possible joint gains for all parties. We develop simple multiple issue algorithms and heuristics that could be used in electronic auctions and electronic markets. In this study, we show how a genetic algorithm based technique, coupled with a simple heuristic can achieve good results in business negotiations. Outcome of the negotiations are evaluated on two dimensions: joint utility and number of exchanges of offers to reach a deal. The results are promising and indicate possible use of such approaches in actual electronic commerce systems.

Keywords

Hybrid Genetic Algorithm Negotiation Strategy Simple Genetic Algorithm Bilateral Negotiation Conceder Strategy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Vinaysheel Baber
    • 1
  • Rema Ananthanarayanan
    • 2
  • Krishna Kummamuru
    • 2
  1. 1.New Hostel, E 418Indian Institute of ManagementCalcuttaIndia
  2. 2.Research Staff Member, IBM India Research LaboratoryIndian Institute of TechnologyNew DelhiIndia

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