IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Negotiating over Bundles and Prices Using Aggregate Knowledge

  • Koye Somefun
  • Tomas Klos

Combining two or more items and selling them as one good, a practice called bundling, can be a very effective strategy for reducing the costs of producing, marketing, and selling goods. In this paper, we design a system for a shop, to negotiate both the contents and the price of bundles of goods with his customers. We present some key insights about, as well as a technique for, locating mutually beneficial alternatives to the bundle currently under negotiation. Our system analyzes the sequence of the customer's offers to determine the progress in the negotiation process. In addition, it uses aggregate knowledge concerning customers' valuations of goods. Both sources of data are used to locate promising alternatives to the current bundle. When the current negotiation's progress slows down, the system suggests the most promising of those alternatives and, depending on the customer's response, continues negotiating about the alternative bundle, or proposes another alternative. Extensive computer simulations show that our approach increases the speed with which deals are reached, as well as the number and quality of the deals reached, compared to a benchmark. Additionally, our system's performance is shown to be robust to a variety of changes in customers' negotiation strategies

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2004 with number 218.

as
in new window

Length:
Date of creation: 11 Aug 2004
Date of revision:
Handle: RePEc:sce:scecf4:218
Contact details of provider: Web page: http://comp-econ.org/
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sce:scecf4:218. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.