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Rational Inefficient Compromises in Negotiation

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  • G.E. Kersten
  • G.R. Mallory

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.

Suggested Citation

  • G.E. Kersten & G.R. Mallory, 1998. "Rational Inefficient Compromises in Negotiation," Working Papers ir98024, International Institute for Applied Systems Analysis.
    • Handle: RePEc:wop:iasawp:ir98024
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    References listed on IDEAS

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    1. McClennen,Edward F., 1990. "Rationality and Dynamic Choice," Cambridge Books, Cambridge University Press, number 9780521360470, January.
    2. 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.
    3. Nancy J Adler & John L Graham, 1989. "Cross-Cultural Interaction: The International Comparison Fallacy?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 20(3), pages 515-537, September.
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    5. Amnon Rapoport & Ido Erev & Rami Zwick, 1995. "An Experimental Study of Buyer-Seller Negotiation with One-Sided Incomplete Information and Time Discounting," Management Science, INFORMS, vol. 41(3), pages 377-394, March.
    6. 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.
    7. G.E. Kersten & S.J. Noronha, 1997. "Supporting International Negotiation with a WWW-Based System," Working Papers ir97049, International Institute for Applied Systems Analysis.
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    Cited by:

    1. Gregory Kersten & Sunil Noronha, 1999. "Negotiation via the World Wide Web: A Cross-cultural Study of Decision Making," Group Decision and Negotiation, Springer, vol. 8(3), pages 251-279, May.

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