Skip to main content
SpringerLink
Log in

E-Negotiations: Foundations, Systems, and Processes

  • Living reference work entry
  • First Online:
Handbook of Group Decision and Negotiation

  • 80 Accesses

Abstract

Negotiation conducted over the internet is called e-negotiation. An overview of electronic negotiation processes, systems, and studies must begin with definitions of the kinds of software that can be used in negotiation facilitation and support. Based on these definitions, e-negotiation systems (ENSs) can be classified on several dimensions, including the nature of the underlying model, the architecture, and the configuration of interaction of the system with human negotiators. Another dimension of ENSs is intended usage, which may be for business, research, or training. Many factors account for the development and application of ENSs, including new internet technologies, the development of artificial intelligence, multimedia availability, software services, new business models, and increased access to data, especially cloud data. The rapid growth in ENSs has been driven by growth in e-business and e-marketplaces, and the increasing importance of electronic transactions and electronic exchange. The embedded exchange mechanisms and the related research should be explored from the intrinsic change of both social and technical aspects and the interactive impact between them. The development of e-negotiation is best understood as consequence of the interaction of social and technical phenomena.

This chapter, a revision and updating of Kersten and Lai (2010), was completed after the untimely death of Gregory Kersten on May 26, 2020. It stands with many of his important and often seminal contributions, which played a major role in defining and developing the field of group decision and negotiation

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

Notes

  1. 1.

    This does not mean that there is no difference between people and software. Human agents may require incentives in order to act on behalf of the principal effectively and efficiently while software does not need them. On the other hand, the principal may expect from human agents a certain ingenuity and ability to cope with unforeseen situations but hardly so from the software agents

  2. 2.

    There is no given a priori decomposition stopping rule. The number of taxonomy levels and their granularity depend on the domain and software engineering requirements. A rule of thumb is to continue decomposition until the lower level-construct has operational relevance, e.g., a parameter or variable in a model

  3. 3.

    Business methods cannot be patented in some countries, e.g., Australia, Canada, signatories of the European Union Convention, and India

  4. 4.

    https://www.jaggaer.com/solutions/, accessed on July 30, 2020

  5. 5.

    https://sites.google.com/site/uolext/home/isorg/isorg-case-studies/chemconnectinc, accessed on July 29, 2020

  6. 6.

    http://www.cybersettle.com/, accessed on July 30, 2020

  7. 7.

    The screenshots are modified so that they do not take a lot of space but illustrate the process as it was presented on the TradeAccess website in August 2000

  8. 8.

    To illustrate the size of the possible legal and accounting expenses a company may incur, consider the agreement between General Electrics and Securities and Exchange Commission in which GE agreed to pay fines of $50 million, and a quarter of $200 million it paid in legal and accounting fees to deal with charges (“Magic Numbers,” The Economist, August 8, 2009)

  9. 9.

    https://www.smartsettle.com/, accessed on July 30, 2020

  10. 10.

    https://beta.reservebidding.com/about, accessed on Aug. 5, 2020

References

  • Bichler M, Kersten G, Strecker S (2003) Towards the structured design of electronic negotiation media. Group Decis Negotiation 12(4):311–335

    Article  Google Scholar 

  • Bjorner D (2006) Software engineering. Domains, requirements, and software design. Springer, Berlin

    Google Scholar 

  • Brandl R, Andreoli M, Castelani S (2003) Ubiquitous negotiation games: a case study. Database and expert systems applications. IEEE, Prague

    Google Scholar 

  • Carbonneau RA, Kersten GE, Vahidov RM (2011) Pairwise issue modeling for negotiation counteroffer prediction using neural networks. Decis Support Syst 50(2):449–459

    Article  Google Scholar 

  • Cerquides J, López-Sánchez M, Reyes-Moro A, Rodríguez-Aguilar JA (2007) Enabling assisted strategic negotiations in actual-world procurement scenarios. Electron Commer Res 7:189–220

    Article  Google Scholar 

  • Chen E, Kersten GE, Vahidov R (2004) Agent-supported negotiations on e-marketplace. Int J Electron Bus 3(1):28–49

    Article  Google Scholar 

  • Chidambaram L, Jones B (1993) Impact of communication medium and computer support on group perceptions and performance: a comparison of face-to-face and dispersed meetings. MIS Q 17(4):465–491

    Article  Google Scholar 

  • Croson RT (1999) Look at me when you say that: an electronic negotiation simulation. Simul Gaming 30(1):23–37

    Article  Google Scholar 

  • Davis FD (1989) Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q 13:318–340

    Article  Google Scholar 

  • DeSanctis G, Gallupe RB (1987) A foundation for the study of group decision support systems. Manag Sci 33(5):589–609

    Article  Google Scholar 

  • Dishaw MT, Strong DM, Bandy DB (2002) Extending the task-technology fit model with self-efficacy constructs. Eight Americas conference on information systems, Dallas

    Google Scholar 

  • Dong H, Hussain FK, Chang E (2008) State of the art in negotiation ontologies for enhancing business intelligence. In: 4th international conference on next generation web services practices. IEEE, Seul

    Google Scholar 

  • Doong H-S, Lai H (2008) Exploring usage continuance of e-negotiation systemsl expectations and disconfirmation approach. Group Decis Negotiation 17(2):111–126

    Article  Google Scholar 

  • Eden C, Radford J (eds) (1990) Tackling strategic problems: the role of group decision support. Sage, London

    Google Scholar 

  • Ehtamo H, Hämäläinen RP, Koskinen V (2004) An e-learning module on negotiation analysis. Hawai’i international conference on system sciences. IEEE Computer Society Press, Hawai’i

    Google Scholar 

  • Fjermestad J, Hiltz SR (1999) An assessment of group support systems experimental research: methodology and results. J Manage Inf Syst 15(3):7–149

    Article  Google Scholar 

  • Fraser NM, Hipel KW (1984) Conflict analysis: models and resolutions. North-Holland, New York

    Google Scholar 

  • Goodhue DL, Thompson RL (1995) Task-technology fit and individual performance. MIS Q 19(2):213–236

    Article  Google Scholar 

  • Gulliver PH (1979) Disputes and negotiations: a cross-cultural perspective. Academic, Orlando

    Google Scholar 

  • Hobson CA (1999) E-negotiations: creating a framework for online commercial negotiations. Negotiation J 15(3):201–218

    Article  Google Scholar 

  • Holsapple CW, Lai H, Whinston AB (1995) Analysis of negotiation support system research. J Comput Inf Syst 35(3):2–11

    Google Scholar 

  • Hujala T, Kurttila M (2010) Facilitated group decision making in hierarchical contexts. In: Kilgour D, Eden C (eds) Handbook of group decision and negotiation. Advances in group decision and negotiation, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9097-3_20

  • Jackson MO (2003) Mechanism theory. Encyclopedia of life support systems. U Derigs. EOLSS, Oxford

    Google Scholar 

  • Jennings NR, Faratin P, Lomuscio AR, Parsons S, Wooldridge MJ, Sierra C (2001) Automated negotiations: prospects, methods and challenges. Group Decis Negotiation 10(2):199–215

    Article  Google Scholar 

  • Kersten GE (1985) An interactive procedure for solving group decision problems. In: Chankong V, Haimes YY (eds) Decision making with multiple objectives, vol 242. Springer, New-York, pp 331–344

    Chapter  Google Scholar 

  • Kersten G (2002) The science and engineering of e-negotiation: review of the emerging field. Concordia University, Montreal

    Google Scholar 

  • Kersten GE (2003a) E-democracy and participatory decision processes: lessons from e-negotiation experiments. J Multi-Criteria Decis Anal 12(2–3):127–143

    Article  Google Scholar 

  • Kersten GE (2003b) E-negotiations: towards engineering of technology-based social processes. Proceedings of the 11th European conference on information systems, Naples

    Google Scholar 

  • Kersten GE (2010) Negotiations and e-negotiations: people, models, and systems. Springer, New York

    Google Scholar 

  • Kersten GE, Lai H (2007) Negotiation support and e-negotiation systems: an overview. Group Decis Negotiation 16(6):553–586

    Article  Google Scholar 

  • Kersten GE, Lai H (2008) Negotiation support and E-negotiation systems. In: handbook on decision support systems 1. International handbooks information system. Springer, Berlin/Heidelberg, pp 469–508. https://doi.org/10.1007/978-3-540-48713-5_23

    Book  Google Scholar 

  • Kersten G, Lai H (2010) Electronic negotiations: foundations, systems, and processes. In: Kilgour D, Eden C (eds) Handbook of group decision and negotiation. Advances in group decision and negotiation, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-9097-3_22

    Chapter  Google Scholar 

  • Kersten GE, Lo G (2003) Aspire: integration of negotiation support system and software agents for e-business negotiation. Int J Internet Enterprise Manage 1(3):293–315

    Article  Google Scholar 

  • Kersten GE, Noronha SJ (1999) WWW-based negotiation support: design, implementation, and use. Decis Support Syst 25:135–154

    Article  Google Scholar 

  • Kersten GE, Kowalczyk R, Lai H, Neumann D, Chhetri MB (2008) Shaman: software and human agents in multiattribute auctions and negotiations. In: Gimpel H, Jennings NR, Kersten GE, Ockenfels A, Weinhardt C (eds) Negotiation, auctions, and market engineering. Lecture notes in business information processing, vol 2. Springer, Berlin/Heidelberg, pp 116–149

    Chapter  Google Scholar 

  • Kersten GE, Pontrandolfo P, Vahidov R, Gimon D (2012) Negotiation and auction mechanisms: two systems and two experiments. In: Shaw MJ, Zhang D, Yue WT (eds) LNBIP 108, WEB 2011. Springer, Berlin/Heidelberg, pp 399–412

    Google Scholar 

  • Kersten GE, Vahidov R, Gimon D (2013) Concession-making in multi-attribute auctions and multi-bilateral negotiations: theory and experiments. Electron Commer Res Appl 12(3):166–180

    Article  Google Scholar 

  • Koeszegi ST, Srnka KJ, Pesendorfer E-M (2006) Electronic negotiations – a comparison of different support systems. Die Betriebswirtschaft 66(4):441–463

    Google Scholar 

  • Koeszegi S, Vetschera R, Kersten GE (2002) Cultural influences on the use and perception of internet-based NSS – an exploratory analysis. Int Negotiations J 9(1):79–109

    Google Scholar 

  • Kurrer K-K (2006) The history of the theory of structures. Ernst & Sons, Orwigsburg

    Google Scholar 

  • Lai H (1989) A theoretical basis for negotiation support systems. Unpublished PhD thesis, Krannert School of Management. West Lafayette, Purdue University

    Google Scholar 

  • Lai H, Doong H-S, Kao C-C, Kersten GE (2006) Understanding behavior and perception of negotiators from their strategies. Group Decis Negotiation 15(5):429–447

    Article  Google Scholar 

  • Lee KC, Kang I, Kim JS (2007) Exploring the user interface of negotiation support systems from the user acceptance perspective. Comput Hum Behav 23(1):220–239

    Article  Google Scholar 

  • Lempereur A (2004) Innovation in teaching negotiation towards a relevant use of multimedia tools. Int Negotiations J 9(1):141–160

    Article  Google Scholar 

  • Lewis LF (1987) A decision support system for face-to-face groups. J Inf Sci 13(4):211–219

    Article  Google Scholar 

  • Lewis LF, Shakun MF (1996) Using a group support system to implement evolutionary systems design. Group Decis Negotiation 5(4–6):319–337

    Article  Google Scholar 

  • Lim L-H, Benbasat I (1992) A theoretical perspective of negotiation support systems. J Manage Inf Syst 9:27–44

    Article  Google Scholar 

  • Lo G, Kersten GE (1999) Negotiation in electronic commerce: integrating negotiation support and software agent technologies. Proceedings of the 5th annual Atlantic Canadian operational research society conference, Halifax

    Google Scholar 

  • Lomuscio AR, Wooldridge M, Jennings NR (2001) A classification scheme for negotiation in electronic commerce. In: Dignum F, Sierra C (eds) Agent-mediated electronic commerce: a European perspective. Springer, Berlin, pp 19–33

    Chapter  Google Scholar 

  • Miller PA, Kelle P (1998) Quantitative support for buyer-supplier negotiation in just-in-time purchasing. J Supply Chain Manage 34(2):25–30

    Google Scholar 

  • Moore D, Kurtzberg T, Thompson L, Morris M (1999) Long and short routes to success in electronically mediated negotiations: group affiliations and good vibrations. Organ Behav Hum Decis Process 77(1):22–43

    Article  PubMed  Google Scholar 

  • Muller HJ (1996) Negotiation principles. In: O’Hare GMP, Jennings N (eds) Foundations of distributed intelligence. Wiley, New York, pp 211–230

    Google Scholar 

  • Mustajoki J, Hämäläinen RP (2000) Web-HIPRE: global decision support by value tree and AHP analysis. Inf Manag 38(3):208–220

    Google Scholar 

  • Neumann D, Benyoucef M, Bassil S, Vachon J (2003) Applying the Montreal taxonomy to state of the art e-negotiation systems. Group Decis Negotiation 12(4):287–310

    Article  Google Scholar 

  • Nunamaker JF Jr, Dennis AR, Valacich JS, Vodel DR (1991) Information technology for negotiating groups: generating options for mutual gain. Manag Sci 37(10):1325–1346

    Article  Google Scholar 

  • Purdy JM, Neye P (2000) The impact of communication media on negotiation outcomes. Int J Confl Manag 11(2):162–187

    Article  Google Scholar 

  • Roth A (2002) The economist as engineer: game theory, experimentation, and computation as tools for design economics. Econometrica:1341–1378

    Google Scholar 

  • Schmid B, Lechner U (1999) Logic for media – the computational media metaphor. 32nd annual Hawaii international conference on system sciences. IEEE Computer Society Press, Hawaii

    Google Scholar 

  • Schoop M, Jertila A, List T (2003) Negoisst: N negotiation support system for electronic business-to-business negotiations in e-commerce. Data Knowl Eng 47(3):371–401

    Article  Google Scholar 

  • Schoop M, Kohne F, Staskiewicz D (2004) An integrated decision and communication perspective on electronic negotiation support systems. Challenges and solutions. J Decis Syst 14(4):375–398

    Article  Google Scholar 

  • Schulze-Horn I, Hueren S, Scheffler P, Schiele H (2020) Artificial intelligence in purchasing: facilitating mechanism design-based negotiations. Appl Artif Intell 34(8):618–642. https://doi.org/10.1080/08839514.2020.1749337

    Article  Google Scholar 

  • Smeltzer LR, Manship JA, Rossetti CL (2003) An analysis of the integration of strategic sourcing and negotiation planning. J Supply Chain Manage 39(4):16–25

    Article  Google Scholar 

  • Ströbel M (2001) Design of roles and protocols for electronic negotiations. Electron Commer Res J 1(3):335–353

    Article  Google Scholar 

  • Ströbel M (2003) Engineering electronic negotiations. Springer, New York

    Book  Google Scholar 

  • Ströbel M, Weinhardt C (2003) The Montreal taxonomy for electronic negotiations. Group Decis Negotiation 12(2):143–164

    Article  Google Scholar 

  • Subramanian G, Zeckhauser R (2005) Negotiauctions’: taking a hybrid approach to the sale of high value assets. Negotiation 8(2):4–6

    Google Scholar 

  • Tamma V, Phelps S, Dickinson I, Wooldridge M (2005) Ontologies for supporting negotiation in e-commerce. Eng Appl Artif Intell 18(2):223–236

    Article  Google Scholar 

  • Teich J, Wallenius H, Wallenius J, Zaitsev A (2001) Designing electronic auctions: an internet-based hybrid procedure combining aspects of negotiations and auctions. J Electron Commer Res 1:301–314

    Article  Google Scholar 

  • Thiessen EM, Loucks DP, Stedinger JR (1998) Computer-assisted negotiations of water resources conflict. Group Decis Negotiation 7(2):109–129

    Article  Google Scholar 

  • Thompson L, Nadler J (2002) Negotiating via information technology: theory and application. J Soc Stud 58(1):109–124

    Google Scholar 

  • Turel O, Yuan Y (2007) User acceptance of web-based negotiation support systems. The role of perceived intention of the negotiating partner to negotiate online. Group Decis Negotiation 16(5):451–468

    Article  Google Scholar 

  • Turel O, Yuan Y (2008) You can’t shake hands with clenched fists: potential effects of trust assessments on the adoption of e-negotiation services. Group Decis Negotiation 17(2):141–155

    Article  Google Scholar 

  • Vahidov RM, Kersten GE, Saade R (2014) An experimental study of software agent negotiations with humans. Decis Support Syst 66:135–145

    Article  Google Scholar 

  • Vetschera R, Kersten GE, Köszegi S (2006) The determinants of NSS success: an integrated model and its evaluation. J Organ Comput Electronic Commer 16(2):123–148

    Article  Google Scholar 

  • Weber M, Kersten GE, Hine MH (2006) An inspire ENS graph is worth 334 words, on average. Electron Mark 16(3):186–200

    Article  Google Scholar 

  • Wurman PR, Walsh WW, Wellman MP (2001) A parametrization of the auction design space. Games Econ Behav 35:304–338

    Article  Google Scholar 

  • Yang YP, Zhong Y, Lim J (2007) Attitudes towards accepting negotiation support functions in e-marketplace websites: an exploratory field study in China. An international meeting on group decision and negotiation, May 14–17, Mt. Tremblant

    Google Scholar 

  • Yuan Y (2001) Online negotiation in electronic commerce. International conference of pacific rim management. ACME Transactions, Toronto

    Google Scholar 

  • Yuan Y, Rose JB, Archer N (1998) A web-based negotiation support system. Electron Mark 8(3):13–17. https://doi.org/10.1080/10196789800000033

    Article  Google Scholar 

  • Yuan Y, Head M, Du M (2003) The effects of multimedia communication on web-based negotiation. Group Decis Negotiation 12(2):89–109

    Article  Google Scholar 

  • Zlotkin G (1996) Mechanisms for automated negotiation in state oriented domains. J Artif Intell Res 5:163–238

    Article  Google Scholar 

Download references

Acknowledgments

This chapter includes material published in Kersten and Lai (2008), Kersten (2010), and Kersten and Lai (2010). This work was partially supported by the Natural Sciences and Engineering Research Council, Canada, and “Aim for the Top University Plan” of the National Sun Yat-sen University and Ministry of Education, Taiwan, R.O.C.

Author information

Authors and Affiliations

  1. InterNeg Research Centre and J. Molson School of Business, Concordia University, Montreal, QC, Canada

    Gregory Kersten

  2. Department of Business Administration, School of Management, National Taiwan Normal University, Taipei, Taiwan

    Hsiangchu Lai

Authors
  1. Gregory Kersten
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Hsiangchu Lai
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Hsiangchu Lai .

Editor information

Editors and Affiliations

  1. Wilfrid Laurier University Dept. Mathematics, Waterloo, ON, Canada

    D. Marc Kilgour

  2. University of Strathclyde Strathclyde Business School, Glasgow, UK

    Colin Eden

Rights and permissions

Reprints and permissions

Copyright information

© 2021 Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Kersten, G., Lai, H. (2021). E-Negotiations: Foundations, Systems, and Processes. In: Kilgour, D.M., Eden, C. (eds) Handbook of Group Decision and Negotiation. Springer, Cham. https://doi.org/10.1007/978-3-030-12051-1_22-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-12051-1_22-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-12051-1

  • Online ISBN: 978-3-030-12051-1

  • eBook Packages: Springer Reference Behavioral Science and PsychologyReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation