MCDM'07 - paper no. 15

 

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Negotiation and arbitration support with analytic hierarchical process

Tomasz Wachowicz

Abstract:

While preparing to negotiations, the negotiating parties usually concentrate on the behavioral aspects of them. They consider various negotiations strategies, tactics, actions and responses believed to be the key factors that allow them to achieve their goals. They pay not enough attention to the adequate definition of their objectives and to the consideration of how to balance shortages in one objective with excesses of the others when it is impossible to achieve the aspiration or reservation values on the individual criteria.
In the paper we consider the PrOACT approach presented by Hammond, Luce and Raiffa to structure the negotiation goals and to score and analyze the negotiation template. We also try to incorporate the AHP procedures in the process of offer evaluation that allow us to avoid simple assigning of the scores to the issues and resolutions. We believe this is important especially for the decision makers who are not skilled in the formal analysis and perceive the assigning as unclear and complicated. After the evaluation of the offers we focus on the search of the fair compromise by means of a well known game theory approach. Finally we return to AHP which allows us to find a fair compromise in the situation where the negotiation strengths of the parties are not equal.

Keywords:

negotiation, negotiation analysis, multiple-attribute decision analysis, AHP, game theory

Reference index:

Tomasz Wachowicz, (2008), Negotiation and arbitration support with analytic hierarchical process, Multiple Criteria Decision Making (3), pp. 233-250

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Scopus citations in 2 paper(s):
  1. Błaszczyk, T., & Wachowicz, T. (2010). The urban bus supplier selection aided by AHP and additive scoring model. Paper presented at the IEEM2010 - IEEE International Conference on Industrial Engineering and Engineering Management, 1722-1726. doi:10.1109/IEEM.2010.5674580
  2. Collier, Z. A., & Lambert, J. H. (2019). Value of risk information in negotiations with evolving preferences. Journal of Risk Research, doi:10.1080/13669877.2019.1671891