Even though procurement processes have a significant negotiation element in them, there is a paucity of research relating to the incorporation of quantitative models of negotiation into procurement systems. In this paper, we first outline multiattribute modeling approaches for three negotiation elements that play a prominent role in procurement decisions. We then develop hypotheses from the literature on human negotiation, and use over 180000 simulations to evaluate the performance of our models with respect to these negotiation characteristics. Our models and simulations have implications for electronic procurement. © 2011 IEEE.

Rangaraja P. Sundarraj

Department of Management Studies

Analytical hierarchy process

BUYER-SUPPLIER NEGOTIATION

ELECTRONIC PROCUREMENT

ELECTRONIC-NEGOTIATION SYSTEM

MULTI-ATTRIBUTES

NEGOTIATION

Simulation

electronic commerce

Electronic data interchange

Purchasing

Computer simulation

IIT Madras is a public technical and research university located in Chennai, Tamil Nadu. Founded in 1959, it is recognised as an Institute of National Importance.

IIT Madras has been ranked as the top engineering institute in India for four years in a row by the National Institutional Ranking Framework of the MHRD

It currently offers undergraduate, postgraduate and research degrees across 16 disciplines in Engineering, Sciences, Humanities and Management. About 596 faculty belonging to science and engineering departments and centres of the Institute are engaged in teaching, research and industrial consultancy.

IIT Madras

Models for Human Negotiation Elements: Validation and Implications for Electronic Procurement

IEEE Transactions on Engineering Management

Researchers have advocated that the acquisition of user preferences is important to the successful adoption of electronic negotiation systems. In this paper, we focus on one such preference, namely time preference, wherein the price of a good/service varies according to the delivery/consumption time. Time preference is a behavioral aspect that varies across buyers. We discuss how different types of preferences can be elicited, represented and integrated with electronic negotiations. We discuss three experiments to study the effect of time preferences on negotiation. The first is a preference elicitation experiment involving 36 subjects. The next two are agent-to-agent negotiation experiments, one based on the individual preferences obtained earlier and the other based on an expanded dataset on both individual preferences as well as negotiation parameters. The agent-based experiment compares outcomes and efficiencies between the standard exponential discounting model and two behavioral models of time preference. Our results bring out the preferences of subjects, as well as the extent to which negotiation is affected and enhanced by the incorporation of time-preferences. © 2016, Springer Science+Business Media Dordrecht.

Group Decision and Negotiation

Integrating Time-Preferences into E-Negotiation Systems: A Model, Elicitation Approach and Experimental Implications

Empirical observations as well as theoretical analysis suggest that negotiation outcome in buyer-supplier situations can be improved by having accurate knowledge about the behavior of ones counterpart (i.e., negotiation partner). Yet, there is a paucity of research works dealing with the incorporation of learning methods into electronic procurement technologies, especially methods that can work with small amounts of information. This paper presents an application of nonlinear optimization for learning the parameters of a common negotiation decision function. Then, to show the usefulness of learning in a procurement-negotiation interaction, we outline a reaction algorithm that seeks to improve outcome. Detailed computational results with both the learning and reaction algorithms are conducted to demonstrate the viability of our approach. © 1988-2012 IEEE.

Optimization-based methods for improving the accuracy and outcome of learning in electronic procurement negotiations

European Journal of Operational Research

A decision support framework for internal audit prioritization in a rental car company: A combined use between DEA and AHP

Journal of Operations Management

Lock-in situations in supply chains: A social exchange theoretic study of sourcing arrangements in buyer-supplier relationships

Omega

Flexibility configurations: Empirical analysis of volume and product mix flexibility

Governing buyer-supplier relationships through transactional and relational mechanisms: Evidence from China

International Journal of Production Economics

The effects of trust and coercive power on supplier integration

Models for human negotiation elements: Validation and implications for electronic procurement

Journal	IEEE Transactions on Engineering Management
ISSN	00189391
Open Access	No