Information Systems - Special issue: The 15th international conference on advanced information systems engineering (CAiSE 2003)
Information Systems - Special issue: The 15th international conference on advanced information systems engineering (CAiSE 2003)
A stochastic negotiation approach to power restoration problems in a smart grid
PRIMA'11 Proceedings of the 14th international conference on Agents in Principle, Agents in Practice
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Traditional group negotiation has focused largely on human conduct with regard to large and generally isolated problems such as procurement and claim settlements. Once the negotiation is accomplished, the process usually attains closure and is quickly forgotten or the long-term impacts of the outcome are often ignored. In organizations, however, decisions involving gives and takes are also made on a continuous basis in that there is a ripple effect in thesequential nature of decision making. When lengthy periods are involved, the organizational contexts can change significantly. Hence, methods useful to a "one-shot" bargaining strategy may neither be applicable nor effective. Furthermore, when organizations face consequences of their own past decisions as well as that of external random events, it is hard to predict where the organization will be at a future time. In this research, we postulate that organizations evolve from one state to another following a probabilistic transition pattern than totally random. Considered this way, organizations can be modeled using sequential Markov chains having a tendency to achieve homeostasis. Understanding organizational behavior in this perspective can be greatly beneficial to negotiators by enabling them to accept short term losses in favor of the larger and better payoffs that are to come.