Adaptive negotiation agents for e-business

  • Authors:
  • Raymond Y. K. Lau

  • Affiliations:
  • City University of Hong Kong, Hong Kong SAR, China

  • Venue:
  • ICEC '05 Proceedings of the 7th international conference on Electronic commerce
  • Year:
  • 2005

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Abstract

Negotiation has been identified as one of the key steps in Business-to-Business (B2B) transaction models. However, developing effective and efficient negotiation mechanisms for e-Business is quite challenging since negotiations in such a context are characterized by combinatorial complex negotiation spaces, tough deadlines, incomplete information about the opponents, and volatile negotiator preferences. Classical negotiation models are not able to offer a satisfactory solution to address all these issues. This paper illustrates our adaptive negotiation agents which are underpinned by a robust evolutionary learning mechanism to deal with complex and dynamic negotiation situations often encountered in e-Business applications. Our experimental results show that the proposed evolutionary negotiation agents outperform a theoretically optimal negotiation mechanism which guarantees Pareto optimal. Our research work opens the door to the development of practical negotiation systems for e-Business.