Reducing Cognitive Effort in Scoring Negotiation Space Using the Fuzzy Clustering Model |
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Authors: | Marzena Filipowicz-Chomko,Rafał Mierzwiak,Marcin Nowak,Ewa Roszkowska,Tomasz Wachowicz |
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Affiliation: | 1.Faculty of Computer Science, Bialystok University of Technology, Ul. Wiejska 45A, 15-351 Białystok, Poland;2.Faculty of Engineering Management, Poznan University of Technology, Ul. Rychlewskiego 2, 60-965 Poznan, Poland;3.Faculty of Economic and Finance, University of Białystok, Ul. Warszawska 63, 15-062 Bialystok, Poland;4.Department of Operations Research, University of Economics in Katowice, Ul. 1 Maja 50, 40-287 Katowice, Poland; |
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Abstract: | Negotiation scoring systems are fundamental tools used in negotiation support to facilitate parties searching for negotiation agreement and analyzing its efficiency and fairness. Such a scoring system is obtained in prenegotiation by implementing selected multiple criteria decision-aiding methods to elicit the negotiator’s preferences precisely and ensure that the support is reliable. However, the methods classically used in the preference elicitation require much cognitive effort from the negotiators, and hence, do not prevent them from using heuristics and making simple errors that result in inaccurate scoring systems. This paper aims to develop an alternative tool that allows scoring the negotiation offers by implementing a sorting approach and the reference set of limiting profiles defined individually by the negotiators in the form of complete packages. These limiting profiles are evaluated holistically and verbally by the negotiator. Then the fuzzy decision model is built that uses the notion of increasing the preference granularity by introducing a series of limiting sub-profiles for corresponding sub-categories of offers. This process is performed automatically by the support algorithm and does not require any additional preferential information from the negotiator. A new method of generating reference fuzzy scores to allow a detailed assignment of any negotiation offer from feasible negotiation space to clusters and sub-clusters is proposed. Finally, the efficient frontier and Nash’s fair division are used to identify the recommended packages for negotiation in the bargaining phase. This new approach allows negotiators to obtain economically efficient, fair, balanced, and reciprocated agreements while minimizing information needs and effort. |
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Keywords: | decision making, negotiation support, preferences, negotiators’ cognitive profiles, efficient contracts |
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