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Automated Multilateral Negotiation on Multiple Issues with Private Information

Author

Listed:
  • Ronghuo Zheng

    (McCombs School of Business, University of Texas at Austin, Austin, Texas 78705)

  • Tinglong Dai

    (Carey Business School, Johns Hopkins University, Baltimore, Maryland, 21202)

  • Katia Sycara

    (Robotics Institute, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Nilanjan Chakraborty

    (Department of Mechanical Engineering, Stony Brook University, Stony Brook, New York 11794)

Abstract

In this paper, we propose and analyze a distributed negotiation strategy for a multi-agent, multi-attribute negotiation in which the agents have no information about the utility functions of other agents. We analytically prove that, if the zone of agreement is nonempty and the agents concede up to their reservation utilities, agents generating offers using our offer-generation strategy, namely the sequential projection strategy, will converge to an agreement acceptable to all the agents; the convergence property does not depend on the specific concession strategy. In considering agents’ incentive to concede during the negotiation, we propose and analyze a reactive concession strategy. Through computational experiments, we demonstrate that our distributed negotiation strategy yields performance sufficiently close to the Nash bargaining solution and that our algorithms are robust to potential deviation strategies. Methodologically, our paper advances the state of the art of alternating projection algorithms, in that we establish the convergence for the case of multiple, moving sets (as opposed to two static sets in the current literature). Our paper introduces a new analytical foundation for a broad class of computational group decision and negotiation problems.

Suggested Citation

  • Ronghuo Zheng & Tinglong Dai & Katia Sycara & Nilanjan Chakraborty, 2016. "Automated Multilateral Negotiation on Multiple Issues with Private Information," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 612-628, November.
  • Handle: RePEc:inm:orijoc:v:28:y:2016:i:4:p:612-628
    DOI: 10.1287/ijoc.2016.0701
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    References listed on IDEAS

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    1. Rubinstein, Ariel, 1982. "Perfect Equilibrium in a Bargaining Model," Econometrica, Econometric Society, vol. 50(1), pages 97-109, January.
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    Cited by:

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