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

IEEE Transactions on Engineering Management

Volumn 58, Issue 3, 2011, Pages 412-430

  Sundarraj, R P ^a   Mok, Wilson Wai Ho ^b  

^a INDIAN INSTITUTE OF TECHNOLOGY MADRAS   (India)

^b Beauchamp Financial Technology Ltd   (Hong Kong)

Author keywords

Analytical hierarchy process (AHP); buyer supplier negotiation; electronic procurement; electronic negotiation system; multiattribute models; negotiation; simulation

Indexed keywords

ANALYTICAL HIERARCHY PROCESS; BUYER-SUPPLIER NEGOTIATION; ELECTRONIC PROCUREMENT; ELECTRONIC-NEGOTIATION SYSTEM; MULTI-ATTRIBUTES; NEGOTIATION; SIMULATION;

ELECTRONIC COMMERCE; ELECTRONIC DATA INTERCHANGE; PURCHASING;

COMPUTER SIMULATION;

EID: 79960709709     PISSN: 00189391     EISSN: None     Source Type: Journal    
DOI: 10.1109/TEM.2010.2058856     Document Type: Article

References (109)

1. V.Arunachalam,W.Dilla, M. Shelley, andC.Chan, "Market alternatives, third party intervention, and third party informedness in negotiation," Group Decis. Negotiation, vol. 7, pp. 81-107, 1998.
2. V. Arunachalam, A. Lytle, and J. Wall, "An evaluation of two mediation techniques, negotiator power, and culture in negotiation," J. Appl. Soc. Psychol., vol. 31, no. 5, pp. 951-980, 2001.
3. R. Axelrod, The Evolution of Cooperation. New York: Basic Books, 1982.
4. P. Balakrishnan and J. Eliashberg, "An analytical process model of twoparty negotiations," Manage. Sci., vol. 41, no. 2, pp. 226-243, 1995.
5. W. Balke, K. Hammond, and D. Meyer, "An alternative approach to labor-management relations," Admin. Sci. Q., vol. 18, pp. 311-327, 1973.
6. G. Barbarosoglu and T. Yazgac, "An application of analytical hierarchy process for the supplier selection problem," Prod. Inventory Manage. J., vol. 38, no. 1, pp. 14-21, 1997. (Pubitemid 127456418)
7. M. Bazerman and J. Carroll, "Negotiator cognition," Res. Org. Behav., vol. 9, pp. 247-288, 1987.
8. M. H. Bazerman, J. R. Curhan, D. A. Moore, and K. L. Valley, "Negotiation," Annu. Rev. Psychol., vol. 51, pp. 279-314, 2000.
9. M. Bazerman and M. Neale, "Heuristics in negotiation: Limitations to effective dispute resolution," in Negotiation in Organizations, Bazerman and Lewicki, Eds. Beverly Hills, CA: Negotiating in Organizations, 1983, pp. 51-67.
10. Y. Bereby-Meyer, S. Moran, and E. Unger-Aviram, "When performance goals deter performance: Transfer of skills in integrative negotiations," Org. Behav. Hum. Decis. Process., vol. 93, pp. 142-154, 2004. (Pubitemid 38421817)
11. A. Bhattarcharjee, "Understanding information systems continuance: An expectation-confirmation model," MIS Q., vol. 25, pp. 351-370, 2001.
12. M. Bichler, "An experimental study of multi-attribute auctions," Decis. Support Syst., vol. 29, pp. 249-268, 2000.
13. M. Bichler and J. Kalagnanam, "Configurable offers and winner determination in multiattribute auctions," Eur. J. Oper. Res., vol. 16, pp. 380-394, 2005.
14. M. Bichler, G. Kersten, and S. Strecker, "Towards a structured design of electronic negotiations," Group Decis. Negotiation, vol. 12, pp. 311-335, 2003.
15. T. Bui, J. Yen, J. Hu, and S. Sankaran, "A multi-attribute negotiation support systems with market signaling for electronic markets," Group Decis. Negotiation, vol. 10, pp. 515-537, 2001.
16. F. Cebi andD.Bayraktar, "An integrated approach for supplier selection," Logistics Inf. Manage., vol. 16, pp. 395-400, 2003.
17. S. P. M. Choi, J. Liu, and S. P. Chan, "A genetic agent-based negotiation system," Comput. Netw., vol. 37, pp. 195-204, 2001. (Pubitemid 32750290)
18. R. Coehoorn and N. Jennings, "Learning an opponent's preference to make effective multi-issue negotiation trade-offs," in International Conference on Electronic Commerce, M. Janssen, H. Sol, and R. Wagenaar, Eds., 2004, pp. 59-68.
19. C. D. Dreu, "Coercive power and concession making in bilateral negotiation," J. Confl. Resolution, vol. 39, pp. 646-670, 1995.
20. C. D. Dreu and G. V. Kleef, "The influence of power on the information search, impression formation and demands in negotiation," J. Exp. Soc. Psychol., vol. 40, pp. 303-319, 2004.
21. H. Dekker, "Partner selection and governance design in interfirm relationships," Account., Org. Soc., vol. 33, pp. 915-941, 2008.
22. L. Deveaux, C. Paraschiv, and M. Latourrette, "Bargaining on an internet agent-based market: Behavioral vs. optimizing agents," Electron. Commerce Res., vol. 1, pp. 371-401, 2001.
23. G. Dickson, "An analysis of vendor selection systems and decisions," J. Purch., vol. 2, pp. 5-17, 1966.
24. R. Dulmin and V. Mininno, "Supplier selection using a multi-criteria decision-aid method," J. Purch. Supply Chain Manage., vol. 9, pp. 177-187, 2003. (Pubitemid 38613750)
25. R. F. Dwyer and O. C.Walker Jr., "Bargaining in an asymmetrical power structure," J. Mark., vol. 45 (Winter), pp. 104-115, 1981.
26. J. Dyer, "Remarks on the analytic hierarchy process," Manage. Sci., vol. 36, no. 3, pp. 249-268, 1990.
27. R. F. Easley, J. S.Valacich, and M. A.Venkataramanan, "Capturing group preferences in a multicriteria decision," Eur. J. Oper. Res., vol. 125, pp. 75-83, 2000.
28. R. Emerson, "Power-dependence relations," Amer. Sociol. Rev., vol. 27, pp. 31-41, 1962.
29. P. Faratin, C. Sierra, and N. R. Jennings, "Negotiation decision functions for autonomous agents," Robot. Autonomous Syst., vol. 24, no. 3-4, pp. 159-182, 1998. (Pubitemid 128401747)
30. E. H. Forman and S. I. Gass, "The analytical hierarchy process-An exposition," Oper. Res., vol. 49, no. 4, pp. 469-486, 2001.
31. C. Gelderman, J. Semeijn, and R. D. Zoete, "The use of coercive influence strategies by dominant suppliers," J. Purch. Supply Manage., vol. 14, pp. 220-229, 2008.
32. S. H. Ghodsypour and C. O'Brien, "A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming," Int. J. Prod. Econ., vol. 56-57, pp. 199-212, 1998. (Pubitemid 128400944)
33. A. Ghosh,W. Joseph, J. Gardner, and S.Thach, "Understanding industrial distributors' expectations of benefits from relations with suppliers," J. Bus. Ind. Mark., vol. 19, no. 7, pp. 433-443, 2004. (Pubitemid 39499362)
34. E. Giebels, C. D. Dreu, and E. V. de Vliert, "Interdependence in negotiation: Effects of exit options and social motive on distributive and integrative negotiation," Eur. J. Soc. Psychol., vol. 30, pp. 255-272, 2000.
35. L. Greenhalgh, S. A. Neslin, and R.W. Gilkey, "The effects of negotiator preferences, situational power, and negotiator personality on outcomes of business negotiations," Acad. Manage. J., vol. 28, no. 1, pp. 9-33, 1985.
36. R. Guttman and P. Maes, "Cooperative vs. competitive multi-agent negotiations in retail electronic commerce," Lect. Notes Comput. Sci., vol. 1435, pp. 135-143, 1998.
37. M. Hallgren and J. Olhager, "Flexibility configurations: Empirical analysis of volume and product mix flexibility," OMEGA, vol. 37, pp. 746-756, 2009.
38. V. L. Huber and M. A. Neale, "Effects of cognitive heuristics and goals on negotiator performance and subsequent goal setting," Org. Behav. Hum. Decis. Process., vol. 36, pp. 342-365, 1986.
39. V. L. Huber and M. A. Neale, "Effects of self-and competitor goals on performance in an interdependent bargaining task," J. Appl. Psychol., vol. 72, no. 2, pp. 197-203, 1987.
40. Impulse: MIT Media Lab 1999 [Online]. Available: http://agents. www.media.mit.edu/groups/agents/projects/impulse/, 2011.
41. N. Jennings, P. Faratin, A. Lomuscio, S. Parsons, M. Woolridge, and C. Sierra, "Automated negotiation: Prospects, methods and challenges," Group Decis. Negotiation, vol. 10, pp. 199-215, 2001.
42. H. Johnston and M. Vitale, "Creating competitive advantage with interorganizational information systems," MIS Q., vol. 12, pp. 153-165, 1988.
43. C. Kahraman, U. Cebeci, and Z. Ulukan, "Multicriteria supplier selection using fuzzy AHP," Logistics Inf. Manage., vol. 16, pp. 382-394, 2003.
44. S. Kanungo, S. Sharma, and P. Jain, "Evaluation of a decision support system for credit management decisions," Decis. Support Syst., vol. 30, pp. 419-436, 2001. (Pubitemid 32139131)
45. N. Karacapilidis and P.Moraitis, "Building an agent-mediated electronic commerce system with decision analysis features," Decis. Support Syst., vol. 32, pp. 53-69, 2001. (Pubitemid 32866917)
46. Kasbah: MIT Media Lab 1999 [Online]. Available: http://ecommerce. media.mit.edu/Kasbah/.
47. G. Kersten, S. Strecker, and K. Law, "Protocols for electronic negotiation systems: Theoretical foundations and design issues," in Electronic Commerce and Web Technologies: Fifth International Conference, ECWeb, Lecture Notes in Computer Science, Database and Expert Systems Applications. New York: Springer-Verlag, vol. 3182, 2004, pp. 106-115.
48. D. Kleinmuntz, "Decomposition and the control of error in decision analytic models," in Insights in Decision Making: A Tribute to Einhorn, R. Hogarth, Ed. Chocago, IL: Univ. Chicago, 1990, pp. 107-126.
49. J. Korpela, A. Lehmusvaara, and J. Nisonen, "Warehouse operator selection by combining AHP and DEA methodologies," Int. J. Prod. Econ., vol. 108, pp. 135-142, 2007. (Pubitemid 46880226)
50. S. Kraus, K. Sycara, and A. Evenchik, "Reaching agreements through argumentation: A logical model and implementation," Artif. Intell., vol. 104, pp. 1-69, 1998. (Pubitemid 128400986)
51. S. Kulp, "The effect of information precision and information reliability on manufacturer retailer relationship," Account. Rev., vol. 77, pp. 653-677, 2002.
52. E.-K. Lee, S. Ha, and S. Kim, "Supplier selection and management system considering relationships in supply chain management," IEEE Trans. Eng. Manage., vol. 48, no. 3, pp. 307-318, Aug. 2001. (Pubitemid 32933090)
53. R. Lester, "Analysis of experience underNewJersey's flexible arbitration system," Arbitration J., vol. 44, pp. 14-21, 1989.
54. T. Liao,M.Wang, and H. Tserng, "A framework for electronic tendering for government procurement: A lesson learned in Taiwan," Automation Constr., vol. 11, pp. 731-742, 2002. (Pubitemid 34772064)
55. S. Lichtenstein, B. Fischchoff, and L. Phillips, "Calibration of probabilities: The state of the art to 1980," in Judgment under Uncertainty: Heuristics and Biases, D. Kahneman, P. Slovic, and A. Tversky, Eds. New York: Cambridge Univ. Press, 1982, pp. 306-334.
56. Y. Liu, Y. Luo, and T. Liu, "Governing buyer-supplier relationships through transactional and relationalmechanisms: Evidence from China," J. Oper. Manage., vol. 27, pp. 294-309, 2009.
57. E. A. Locke, K. N. Shaw, L. M. Saari, and G. P. Latham, "Goal setting and task performance 1969-1980," Psychol. Bull., vol. 90, pp. 125-152, 1981.
58. P. Maes, R. Guttman, and A. Moukas, "Agents that buy and sell," Commun. ACM, vol. 42, pp. 81-91, 1999. (Pubitemid 129563947)
59. L. McAlister, M. H. Bazerman, and P. Fader, "Power and goal setting in channel negotiations," J. Mark. Res., vol. 23, pp. 228-237, 1986.
60. M. McHugh, P. Humphreys, andR.McIvor, "Buyer supplier relationships and organizational health," J. Supply ChainManage., vol. 39, pp. 15-25, 2003.
61. W. W. H. Mok and R. Sundarraj, "Learning algorithms for singleinstance electronic negotiations using the time-dependent behavioral tactic," ACM Trans. Internet Technol., vol. 5, no. 1, pp. 195-230, 2005. (Pubitemid 40449668)
62. O. Morera and D. Budescu, "Random error reduction in analytic hierarchies: Acomaprison of holistic and decompositional decision strategies," J. Behav. Decis. Making, vol. 14, pp. 223-242, 2001.
63. J. Mumpower and J. Rohrbaugh, "Negotiation and design: Supporting resource allocation decisions through analytical mediation," Group Decis. Negotiation, vol. 5, pp. 385-409, 1996. (Pubitemid 126716871)
64. R. Narasimhan,A.Nair,D.Griffith, J.Arlbjorn, and E.Bendoly, "Lock-in situations in supply-chains:Asocial exchange theoretic study of sourcing arrangement in buyer-supplier relationships," J. Oper. Manage., vol. 27, pp. 374-389, 2009.
65. J. Nash, "The bargaining problem," Econometrica, vol. 18, pp. 155-162, 1950.
66. S. Paurobally, P. J. Turner, and N. R. Jennings, "Automating negotiation for m-services," IEEE Trans. Syst., Man, and Cybern. A, vol. 33, no. 6, pp. 709-724, Nov. 2003.
67. N. Penayiotou, S. Gayialis, and I. Tatsiopoulos, "An e-procurement system for governmental purchasing," Int. J. Prod. Econ., vol. 90, pp. 79-102, 2004.
68. M. Perry and A. Sohal, "Effect quick response practices in a supply chain partnership," Int. J. Oper. Prod. Manage., vol. 21, pp. 840-854, 2001.
69. A. Pidduck, "Issues in supplier partner selection," J. Enterprise Inf. Manage., vol. 19, pp. 262-276, 2006. (Pubitemid 43747987)
70. R. L. Pinkley,M. A. Neale, and R. J. Bennett, "The impact of alternatives to settlement in dyadic negotiation," Org. Behav. Hum. Decis. Process., vol. 57, pp. 97-116, 1994.
71. A. Pressey, N. Tzokas, and H. Winklhofer, "Strategic purchasing and evaluation of problem key supply relationships: What do key suppliers need to know?," J. Bus. Ind. Mark., vol. 22, pp. 282-294, 2007.
72. D. G. Pruitt, Negotiation Behavior.. New York: Academic Press, 1981.
73. M. Rader and G. Neumann, "Conflict and contract: The case of strikes," J. Pol. Econ., vol. 88, pp. 867-886, 1980.
74. A. Rai, X. Tang, P. Brown, andM. Keil, "Assimilation patterns in the use of electronic procurement innovations:Acluster analysis," Inf.Manage., vol. 43, pp. 336-349, 2006. (Pubitemid 43333005)
75. H. Raiffa, The Art and Science of Negotiation. Boston, MA: Harvard Univ. Press, 1982.
76. R. Ramanathan, "Data envelopment analysis for weight derivation and aggregation," Comput. Oper. Res., vol. 33, pp. 1289-1307, 2006.
77. A. Rapoport, I. Erve, and R. Zwick, "An experimental study of buyerseller negotiation with one-sided incomplete information and time discounting," Manag. Sci., vol. 41, no. 3, pp. 377-394, 1995.
78. I. Ritov, "Anchoring in simulated competitive market negotiation," Org. Behav. Hum. Decis. Process., vol. 67, pp. 16-25, 1996. (Pubitemid 126168099)
79. J. Z. Rubin and B. R. Brown, The Social Psychology of Bargaining and Negotiation.. New York: Academic Press, 1975.
80. T. L. Saaty, The Analytic Network Process. Pittsburgh, PA: RWSPubl., 2001.
81. M. Schoop and C. Quix, "DOC-COM: A framework for effective negotiation support in electronic marketplaces," Comput. Netw., vol. 37, no. 2, pp. 153-170, 2001. (Pubitemid 32750288)
82. J. Sebenius, "Negotiation analysis:Acharacterization and review," Manage. Sci., vol. 38, no. 1, pp. 18-38, 1992.
83. K. M. Sim and R. Chan, "A brokering protocol for agent-based ecommerce," IEEE Trans. Syst., Man, Cybern. C: Appl. Rev., vol. 30, no. 4, pp. 474-484, Nov. 2000.
84. H. A. Simon, "The organization of complex systems," in Hierarchy Theory, H. H. Pattee, Ed. New York: George Braziller, 1973.
85. A. Soares-Aguiar and A. Palma-dos-Reis, "Why do firms adopt eprocurement systems? Using logistic regression to empirically test a conceptual model," IEEE Trans. Eng. Manage., vol. 55, no. 1, pp. 120-133, Feb. 2008. (Pubitemid 351314644)
86. M. Strobel, "An XML schema representation for the communication design of electronic negotiations," Comput. Netw., vol. 39, pp. 661-680, 2002. (Pubitemid 34624064)
87. A. Stuhlmacher and M. Stevenson, "Using policy modeling to describe the negotiation exchange," Group Decis. Negotiation, vol. 6, pp. 317-337, 1997. (Pubitemid 127429548)
88. C. Subramaniam, "The effects of process characteristics on the value of B2B E-procurement," Inf. Technol. Manage., vol. 5, pp. 161-180, 2004.
89. T. Sueyoshi, J. Shang, and W. Chiang, "A decision support system for internal audit prioritization in a rental car company: A combined use of DEA and AHP," Eur. J. Oper. Res., vol. 199, pp. 219-231, 2009.
90. S. Talluri, "A buyer-seller game model for selection and negotiation of purchasing bids," Eur. J. Oper. Res., vol. 143, pp. 171-180, 2002.
91. S. Talluri, "The use of efficient marginal costs in purchasing decisions," J. Supply Chain Manage., vol. 38, pp. 4-10, 2002.
92. S. Talluri, R. Narasimhan, and S. Viswanathan, "Information technologies for procurement decisions: A decision support systems for multiattribute e-reverse auctions," Int. J. Prod. Res., vol. 45, pp. 2615-2628, 2007. (Pubitemid 46633804)
93. S. Talluri, S.Vickery, and S.Narayanan, "Optimizationmodels for buyersupplier negotiations," Int. J. Phys. Distrib. Logistics Manage., vol. 38, pp. 551-561, 2008.
94. J. Teich, P. Korhonen, H. Wallenius, and J. Wallenius, "Conducting dyadic multiple issue negotiation experiments: Methodological recommendations," Group Decis. Negotiation, vol. 9, pp. 347-354, 2000.
95. J. Thibaut and H. Kelley, The Social Psychology of Groups. NewYork: Wiley, 1959.
96. L. Thompson, "The influence of experience on negotiation performance," J. Exp. Soc. Psychol., vol. 26, pp. 528-544, 1990.
97. L. Thompson, "Information exchange in negotiation," J. Exp. Soc. Psychol., vol. 27, pp. 161-179, 1991.
98. L. Thompson and T. DeHarpaport, "Social judgment, feedback and interpersonal learning in negotiation," Org. Behav. Hum. Decis. Process., vol. 58, pp. 327-345, 1994.
99. L. Thompson and R. Hastie, "Social perception in negotiation," Org. Behav. Hum. Decis. Process., vol. 47, pp. 98-123, 1990.
100. L. Thompson and D. Hrebec, "Lose-lose agreements in interdependent decision making," Psychol. Bull., vol. 120, pp. 396-409, 1996.
101. T. Tripp and H. Sondak, "An evaluation of dependent variables in negotiation studies: Impasse rate and Pareto efficiency," Org. Behav. Hum. Decis. Process., vol. 51, pp. 273-295, 1992.
102. M. Tu, F. Griffel, M. Merz, and W. Lamersdorf, "A plug-in architecture providing dynamic negotiation capabilities for mobile agents," LNCS, vol. 1477, pp. 222-236, 1998. (Pubitemid 128134996)
103. D. V. Poucke and M. Bulens, "Predicting the outcome of a two-party price negotiation: Contributions of reservation price, aspiration price and opening offer," J. Econ. Psychol., vol. 23, pp. 67-76, 2002.
104. C.Weber, J. Current, and A. Desai, "Non-cooperative negotiation strategies for vendor selection," Eur. J. Oper. Res., vol. 108, pp. 208-223, 1998. (Pubitemid 128372600)
105. F. Wu, G. Zsidisin, and A. Ross, "Antecedents and outcomes and eprocurement adoption: An integrative model," IEEE Trans. Eng. Manage., vol. 54, no. 3, pp. 576-587, Aug. 2007. (Pubitemid 47261499)
106. J. Yeung, W. Selen, M. Zhang, and B. Huo, "The effects of trust and coercive power on supplier integration," Int. J. Prod. Econ., vol. 120, pp. 66-78, 2009.
107. Y. Yuan, J. Rose, and N. Archer, "A web-based negotiation support system," Electron. Mark., vol. 8, pp. 13-17, 1998.
108. F. Zachariassen, "Negotiation strategies in supply chain management," Int. J. Prod. Distrib. Logistics Manage., vol. 38, pp. 764-781, 2008.
109. D. Zeng and K. Sycara, "Bayesian learning in negotiation," Int. J. Hum.-Comput. Stud., vol. 48, pp. 125-141, 1998. (Pubitemid 128379458)