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Rational Inefficient Compromises in Negotiation

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  • G.E. Kersten
  • G.R. Mallory
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    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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    File URL: http://www.iiasa.ac.at/Publications/Documents/IR-98-024.pdf
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    File URL: http://www.iiasa.ac.at/Publications/Documents/IR-98-024.ps
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    Bibliographic Info

    Paper provided by International Institute for Applied Systems Analysis in its series Working Papers with number ir98024.

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    Date of creation: May 1998
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    Handle: RePEc:wop:iasawp:ir98024

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    1. Prasnikar, Vesna & Roth, Alvin E, 1992. "Considerations of Fairness and Strategy: Experimental Data from Sequential Games," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 865-88, August.
    2. Thompson, Leigh & Loewenstein, George, 1992. "Egocentric interpretations of fairness and interpersonal conflict," Organizational Behavior and Human Decision Processes, Elsevier, vol. 51(2), pages 176-197, March.
    3. G.E. Kersten & S.J. Noronha, 1997. "Supporting International Negotiation with a WWW-Based System," Working Papers ir97049, International Institute for Applied Systems Analysis.
    4. Nancy J Adler & John L Graham, 1989. "Cross-Cultural Interaction: The International Comparison Fallacy?," Journal of International Business Studies, Palgrave Macmillan, vol. 20(3), pages 515-537, September.
    5. G.E. Kersten & S.J. Noronha, 1997. "Negotiation Via the World Wide Web: A Cross-Cultural Study of Decision Making," Working Papers ir97052, International Institute for Applied Systems Analysis.
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