Searching for better negotiation agreement based on genetic algorithm

Ren-Jye Dzeng*, Yu Chun Lin

*Corresponding author for this work

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

Negotiation is commonly required in the procurement of construction materials to reach the final contractual agreement. In current practice, contractors negotiate with suppliers according to negotiators' experiences instead of extensive exploration of negotiable options and negotiators' preferences. Consequently, negotiators often reach suboptimal agreements, and leave money on the table. This research intends to help negotiators explore negotiable options by developing a computer system, named C-Negotiator, using the genetic algorithm. This article also describes experiments conducted to determine how much money was left on the table on typical realistic construction procurements. The result shows that C-Negotiator's negotiation improved the joint payoff of the contractor and supplier from 1.5 % to 9.8% compared with conventional human negotiation. The improvement may increase for more complex negotiation problems with more options and complicated preferences or for inexperienced negotiators.

Original languageEnglish
Pages (from-to)280-293
Number of pages14
JournalComputer-Aided Civil and Infrastructure Engineering
Volume20
Issue number4
DOIs
StatePublished - 1 Jul 2005

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