A strategic decision model for multi-attribute bilateral negotiation with alternating offers

Abstract

A strategic decision model for bilateral, alternating offers, multi-attribute negotiations under incomplete information is presented. The strategy computes offers and offer acceptance to approximately optimize expected utility using depth-limited combinatorial search and Bayesian updating. Optimization is performed with respect to a model of the opponents' presumed strategic behavior and a probability distribution on the opponent's utility function. Probability distribution is updated based on observed offers and responses.