Skip to main content
SpringerLink
Log in

Electronic Negotiations: Foundations, Systems, and Processes

  • Chapter
  • First Online:
Handbook of Group Decision and Negotiation

Part of the book series: Advances in Group Decision and Negotiation ((AGDN,volume 4))

Abstract

Electronic negotiations are conflict management and resolution processes conducted on the internet and supported with software. This chapter provides a historical overview of software used in conducting negotiations and aiding negotiators. It recognizes the contributions to the design of negotiation models and systems coming from management science, engineering and management information systems as well as the more recent ones coming from psychology, communication research (see the chapter by Schoop, this volume) and computer science (see the chapter by Sycara and Dai, this volume). Special attention is given to the relationship between the design and engineering of e-negotiation systems and the socio-psychological and anthropological aspects of negotiations that involve people. The discussion on e-negotiation systems and processes is grounded in negotiation process models (see the chapter by Koeszegi and Vetschera, this volume), e-negotiation taxonomy, exchange mechanism design, and protocol theory. The chapter reviews and analyses several e-negotiation systems used in business and academia, including negotiation software platforms used in supply chain systems as well as in research and training.

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

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 259.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 329.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    This chapter includes material published in Kersten and Lai (2007) and Kersten (2010). This work has been 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. We thank Norma Paradis for her help in preparation of this chapter.

  2. 2.

    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.

  3. 3.

    There is no given a priori decomposition stopping rule. The number of taxonomy levels and its 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.

  4. 4.

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

  5. 5.

    SquareTrade.com is not affiliated with eBay.com; it (August 10, 2009) provides warranties to customers of every merchant who signs up with it.

  6. 6.

    I tried to contact the company and learn more about their services but to no avail; the emails did not go through. Downloaded on August 5, 2009 from:http://www.bravosolution.com/cms/us/solutions/software-suite/sourcing/key-features

  7. 7.

    Downloaded on August 5, 2009 from: https://http://www.localgovsourcing.co.uk/web/corporate.htm

  8. 8.

    http://www.widestrom.com, accessed on August 10, 2009. This assessment is based on comments posted on Driving Revenue Monthly Newsletter, April 2009, http://www.drivingrevenue.biz.

  9. 9.

    http://chemconnect.com/102501.html, accessed on August 10, 2009.

  10. 10.

    The web site settlementonline.com, which had been used by the company in the early 2000, is, as of August 5, 2009, a page with links to insurance, law and other firms.

  11. 11.

    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 web site in August 2000.

  12. 12.

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

  13. 13.

    Downloaded from the E-optimization Community web site on August 5, 2009 http://www.e-optimization.com/solutions/solution.cfm?id=102#document

References

  • Bichler M (2001) The future of e-markets. Multidimensional market mechanisms. Cambridge University Press, Cambridge

    Book  Google Scholar 

  • 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 

  • 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. Simulation 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. Manage 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, TX

    Google Scholar 

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

    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, Hawai’i, IEEE Computer Society Press

    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

    Google Scholar 

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

    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, FL

    Google Scholar 

  • Hiltz SR, Turoff M (1978) The network nation: human communication via computer. Addison-Wesley, Reading, MA

    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 

  • Isermann H (1985) Interactive group decision making by coalitions. Interactive decision analysis. MG a. AP Wierzbicki. Springer, Berlin

    Google Scholar 

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

    Google Scholar 

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

    Chapter  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, NY

    Google Scholar 

  • Kersten GE, Lai H (2007) Negotiation support and e-negotiation systems. In: Burstein F, Holsapple CW (eds) Handbook on decision support systems. Springer, Berlin, pp 133–172

    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 (2007) Satisfiability and completeness of protocols for electronic negotiations. Eur J Oper Res 180(2):922–937

    Article  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, Zhang G (2003) Mining inspire data for the determinants of successful internet negotiations. Cent Eur J Oper Res 11(3):297–316

    Google Scholar 

  • Kersten GE, Köszegi S, Vetschera R (2003) The effects of culture in computer-mediated negotiations: experiments in 10 countries. J Inf Technol Theory Appl (JITTA) 5(2):1–28

    Google Scholar 

  • Kersten GE, Chen E, Neumann D, Vahidov R, Weinhardt C (2008) On comparison of mechanisms of economic and social exchanges: the Times model. In: Gimpel H, Jennings N, Kersten GE, Ockenfels A, Weinhardt C (Eds) Negotiation, auctions, and market engineering, Springer, Heidelberg, pp 16–43

    Google Scholar 

  • Koeszegi S, Vetschera R, Kersten GE (2004) Cultural influences on the use and perception of internet-based NSS – an exploratory analysis. Int Negotiations J 9(1):79–109

    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 

  • Köszegi 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

    Article  Google Scholar 

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

    Google Scholar 

  • Lai H (1989) A theoretical basis for negotiation support systems. 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

    Google Scholar 

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

    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, NS

    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 

  • Milgrom P (2004) Putting auction theory to work. Cambridge University Press, Cambridge

    Book  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  Google Scholar 

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

    Google Scholar 

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

    Google Scholar 

  • Nardi BA, O’Day VL (1999) Information ecologies: using technology with heart. MIT, Cambridge

    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 

  • NovaForum (2000) The electronic courthouse. Retrieved January 10, 2004, Available via http://www.electroniccourthouse.com

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

    Article  Google Scholar 

  • Paliwal AV, Adam N, Atluri V, Yesha Y (2003) Electronic negotiation of government contacts through transducers. The national conference on digital government research, Boston, Digital Government Research Center

    Google Scholar 

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

    Article  Google Scholar 

  • Raines SS (2006) Mediating in your pajamas: the benefits and challenges for ODR practitioners. Confl Res Q 23(3):359–369

    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, Hawaii, IEEE Computer Society Press

    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 

  • Shakun MF (1988) Evolutionary systems design: policy making under complexity and group decision support Systems. Holden-Day, Oakland, CA

    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. Kluwer, New York, NY

    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 (1994) ICANS: interactive computer assisted negotiation support. Computer assisted negotiation and mediation: prospects and limits, Harvard, Harvard Law School, Cambridge, MA

    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 (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 

  • 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 

  • 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. Electronic Markets 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, Canada

    Google Scholar 

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

    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 

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

    Google Scholar 

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

    Google Scholar 

Download references

Author information

Authors and Affiliations

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

    Gregory Kersten

  2. College of Management, National Sun Yat-sen University, Kaohsiung, 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 Gregory Kersten .

Editor information

Editors and Affiliations

  1. Dept. Mathematics, Wilfrid Laurier University, University Ave. W. 75, Waterloo, N2L 3C5, Canada

    D. Marc Kilgour

  2. Strathclyde Business School, University of Strathclyde, Glasgow, G4 0QU, United Kingdom

    Colin Eden

Rights and permissions

Reprints and permissions

Copyright information

© 2010 Springer Science+Business Media B.V.

About this chapter

Cite this chapter

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

Download citation

Publish with us

Policies and ethics

Search

Navigation