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TOPSIS Based Approach to Scoring Negotiating Offers in Negotiation Support Systems

Author

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  • Tomasz Wachowicz

    (University of Economics in Katowice)

  • Paweł Błaszczyk

    (University of Silesia)

Abstract

In this paper we analyze the possibility of applying the technique for order preferences by similarity to ideal solution (TOPSIS) to building the scoring system for negotiating offers. TOPSIS is a multiple criteria decision making method that is based on measuring distances between alternatives under consideration and two bipolar reference alternatives, a positive and negative ideal. Thus the criteria used for the evaluation of alternatives should be described using strong scales. However, in the negotiation, the issues are very often described qualitatively, which results in ordinal or even nominal variables that must be taken into consideration in offers’ evaluation process. What is more, TOPSIS may be applied to solving the discrete decision problems while the negotiation space may be defined by the means of continuous variables too. In this paper we try to modify the TOPSIS algorithm to make it applicable to negotiation support and, moreover, discuss the following methodological issues: using TOPSIS for a negotiation problem with continuous negotiation space; selecting the distance measure for adequate representation of negotiator’s preferences and measuring distances for qualitative issues. Finally, we propose a simple additional mechanism that allows for building the TOPSIS-based scoring system for negotiating offers and does not involve negotiators in time consuming and tiresome preference elicitation process. This mechanism requires from negotiators to construct examples of offers that represent some categories of quality and then by using a goal programming approach it infers all the parameters required by the TOPSIS algorithm. We also show a simple prototype software tool that applies the TOPSIS modified algorithm and may be used in electronic negotiation support.

Suggested Citation

  • Tomasz Wachowicz & Paweł Błaszczyk, 2013. "TOPSIS Based Approach to Scoring Negotiating Offers in Negotiation Support Systems," Group Decision and Negotiation, Springer, vol. 22(6), pages 1021-1050, November.
    • Handle: RePEc:spr:grdene:v:22:y:2013:i:6:d:10.1007_s10726-012-9299-1
    DOI: 10.1007/s10726-012-9299-1
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    References listed on IDEAS

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    1. James K. Sebenius, 1992. "Negotiation Analysis: A Characterization and Review," Management Science, INFORMS, vol. 38(1), pages 18-38, January.
    2. Kalai, Ehud & Smorodinsky, Meir, 1975. "Other Solutions to Nash's Bargaining Problem," Econometrica, Econometric Society, vol. 43(3), pages 513-518, May.
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    4. D F Jones & S J Mardle, 2004. "A distance-metric methodology for the derivation of weights from a pairwise comparison matrix," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(8), pages 869-875, August.
    5. Gregory E. Kersten & Hsiangchu Lai, 2007. "Negotiation Support and E-negotiation Systems: An Overview," Group Decision and Negotiation, Springer, vol. 16(6), pages 553-586, November.
    6. Ernest M. Thiessen & Andrea Soberg, 2003. "SmartSettle Described with the Montreal Taxonomy," Group Decision and Negotiation, Springer, vol. 12(2), pages 165-170, March.
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    Cited by:

    1. Eduarda Asfora Frej & Danielle Costa Morais & Adiel Teixeira de Almeida, 2022. "Negotiation Support Through Interactive Dominance Relationship Specification," Group Decision and Negotiation, Springer, vol. 31(3), pages 591-620, June.
    2. Liu, Er-na & Wang, Yanan & Chen, Wei & Chen, Wenjun & Ning, Siyin, 2021. "Evaluating the transformation of China's resource-based cities: An integrated sequential weight and TOPSIS approach," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    3. Wachowicz, Tomasz & Roszkowska, Ewa, 2022. "Can holistic declaration of preferences improve a negotiation offer scoring system?," European Journal of Operational Research, Elsevier, vol. 299(3), pages 1018-1032.

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