Preference adjustment and opportunities for agreement: Decision modeling to assess negotiating flexibility at UNCED

This paper develops a conceptual framework and applies it to analyze the dynamics of national interests in prenegotiation. The study's goals are to develop a systematic approach for analyzing prenegotiation processes and provide results that will have practical utility for negotiators. Specifically, the approach is applied to the prenegotiation process of the 1992 United Nations Conference on Environment and Development (UNCED), examining the financial resources issue, in particular. Decision analytic models were built to account for three key negotiation actors, and sensitivity analyses were performed to evaluate the incremental modifications to issue preferences required to achieve mutually acceptable compromises. Conclusions are drawn that indicate the extent of flexibility required of key negotiation actors to take advantage of the opportunities for agreement in the financial resources issue area. The conceptual framework and methodological approach explored in this paper can provide practical assistance as a planning tool for negotiators, helping them to diagnose the situation and plan strategies for future environmental and other multilateral negotiations. The approach can suggest specific opportunities for compromise and the degree and type of flexibility needed to achieve a convergence of interests on the issue.     

User Acceptance of Web-Based Negotiation Support Systems: The Role of Perceived Intention of the Negotiating Partner to Negotiate Online

With the rapid growth of web-based services and global trade, there is some commercial potential for web-based Negotiation Support Services (WNSS). This market potential, however, is somewhat untapped. While previous studies had examined WNSS adoption by individual decision makers, this situation is not fully realistic, as the conformity of all negotiating partners is required for web-based negotiation to happen. Therefore, this study extends the technology acceptance model for the context of e-negotiation through the inclusion of perceptions regarding the intention of the negotiating partner to use WNSS (i.e., perceived intentions). An empirical investigation, based on phone interviews with potential users, supports the research model. The perceived intention of the negotiating partner to agree to use WNSS was found to have significant positive effect on individuals’ acceptance of WNSS and its antecedents. Adding this construct into WNSS acceptance theory advances our understanding of WNSS adoption and provides important insights for scholars and practitioners.     

Boundaries in Bargaining: A Multidimensional View

Boundaries have positive and negative effects on international negotiation processes. This article states that the positive side of boundaries has often been neglected and that limitations are absolutely vital for effective international bargaining processes. Without restrictions, negotiation processes lose their significance as a tool in inter state and inter organisational policy making and conflict resolution. The article briefly analyses six boundaries that help international negotiation processes reach the stage of an internationally acceptable agreement: geography, systems, needs, resources, regulators, and time.     

Negotiation Support and E-negotiation Systems: An Overview

With negotiation being an often difficult process involving complex problems, computer-based support has been employed in its various phases and tasks. This article provides a historical overview of software used to support negotiations, aid negotiators, and automate one or more negotiation activities. First, it presents several system classifications, including implemented models, system architectures, and configurations of various systems interacting with human negotiators. Then, it focuses on NSSs (negotiation support systems) and related systems introduced in the early 1980s and on ENSs (e-negotiation systems), which are deployed on the web. These broad categories are discussed from four perspectives: real-life applications, systems used in research and training, research results, and research frameworks.     

Limits to Scale and Scope: The Failure of a Danish Slaughterhouse Merger in 1890/91

The seminal work of Alfred Chandler was based on observations relating to the so-called second industrial revolution. They concerned the development of the large modern manufacturing company and the paths of that development. This article attempts to apply the framework to a failed Danish slaughterhouse merger in 1890/91 between the established private slaughterhouses and the rising co-operative ones. The article deals with the question of the relevance of Chandler's concepts to the negotiation process and with that of the limits to the explanatory power of the framework. In order to answer these questions, the motives of both parties as well as the negotiation process are investigated in some depth. The analysis provides evidence that both sides made considerable use of arguments in line with Chandler's concepts and serving as a vehicle for creating mutual understanding of the economic rationale behind the merger. The article presents and discusses a number of factors and aspects that stalled the process and eventually caused the failure. These factors are all outside Chandler's universe, the corollary being that while ‘economic’ arguments unequivocally favoured the merger, ‘extra-economic’ factors were powerful enough to nullify the economic rationale. Technological and economic arguments were overpowered by political and social ones.     

The Effects of Financial Education on Financial Literacy and Savings Behavior: Evidence from a Controlled Field Experiment in Dutch Primary Schools

This article reports the results of a controlled field experiment designed to estimate the short‐term effects of a 45‐minute financial education program on the financial literacy and savings behavior of children in Dutch primary schools. Among fifth and sixth graders, the program led to a pre‐ to posttest improvement in financial literacy on almost one of eight questions, with about one‐third of the increase in correctness attributable to the program. It also raised the probability of willingness to save by 4 percentage points. Nonetheless, whereas the program appears effective in respect to questions that explicitly address program content, its significant effects on financial literacy seem primarily driven by the results for girls, although we cannot reject homogeneous treatment effects with respect to gender.     

Rejection of Empathy in Negotiation

Trust is a crucial quality in the development of individuals and societies and empathy plays a key role in the formation of trust. Trust and empathy have growing importance in studies of negotiation. However, empathy can be rejected which complicates its role in negotiation. This paper presents a linguistic analysis of empathy by focusing on rejection of empathy in negotiation. Some of the rejections are due to failed recognition of the rejector’s needs and desires whereas others have mainly strategic functions gaining momentum in the negotiation. In both cases, rejection of empathy is a phase in the negotiation not a breakdown.     

Market Model-Based Channel Selection in B2B E-Commerce: Exploring a Buyer's Adoption Decisions

Companies that seek to exploit the cost advantages of business-to-business (B2B) e-Commerce face a variety of strategic options. By analyzing the demand and cost functions for sellers, intermediaries, and buyers, this research develops an economic framework that clarifies the relative advantages of four common B2B e-Commerce channels: private exchange, web-based procurement, public aggregation, and public exchange. This research focuses on addressing two important questions: (1) How does a buyer select a suitable B2B e-Commerce channel (or an e-Marketplace structure) given a variety of market conditions, different levels of product substitution, and a range of purchasing patterns? (2) How does a buyer successfully manage a B2B e-Commerce channel for gaining the highest transaction-level buyer surplus? The analytic and numeric results of our study show that a company's product offerings, the market conditions it faces, and the purchase patterns it implements are all important determinants in the selection of B2B e-Commerce setting. For custom products, private networks (such as the private exchange or web-based procurement models) are more attractive than the public aggregation or exchange models. However, taking market conditions and purchasing behavior into consideration, the web-based procurement model is more suitable for spot purchasing, while the public exchange model is more suitable for systematic purchasing and fragmented markets. On the other hand, the aggregation model is preferable in concentrated markets while the exchange model is more suitable in fragmented markets. These results provide important implications for industrial development of B2B e-Commerce.     

Comparison of codes of conduct for multinational corporations

The conflict between increasing technical and economic integration and a resistance to political integration has led to tension between multinational enterprises (MNEs) and nation states. One result has been a growth in pressures to regulate MNEs, often through codes of conduct. This article compares five codes of conduct prepared by groups ranging from the OECD to the non-aligned countries.While substantial areas of agreement are found, important disagreements over the objectives and provisions of a code of conduct do emerge on a North-South or rich-poor axis. The most important disagreements involve resolution of investor-host government disutes and questions of national treatment of investors.Although the major disagreements between rich and poor countries will be difficult to resolve, the article posits that the process of code development per se is valuable as a means of facilitating the transmutation of symbolic into concrete differences. The development of a reasonably explicit code for regulation of MNEs requires that the parties concentrate on relatively narrow issues areas and permissible behavior rather than symbolism and ideology. While important, and perhaps even interactable problems remain, it is suggested that the process of code development is important, as the relatively concrete differences that result are at least potentially subject to resolution through rational negotiation. Symbolic differences obviously are not.The article also suggests a minimal scope of issue areas to be covered if a code is to be an effective instrument.     

Communication Quality in Business Negotiations

The quality of a business negotiation process is usually assessed by its economic outcome, e.g. in terms of Pareto efficiency or distance to Nash equilibrium. We argue that this assessment method is insufficient in that it fails to provide a comprehensive analysis of business negotiations. Negotiators engage in highly complex communication tasks, and these communication processes should be analysed along with the outcome in the overall evaluation of a business negotiation. To this end, we will introduce Communication Quality as a new construct for analyzing the negotiation process. Furthermore, it will be argued that Communication Quality itself can affect economic negotiation outcomes both short- and long-term. We will present relevant aspects of Communication Quality, outline a scheme for its operationalisation and measurement, and discuss its probable impacts on business negotiations.     

Data-based negotiator allocation management

Negotiation abilities are difficult to assess, and negotiation outcomes are difficult to predict. This leads to possible deficiencies in resource allocation for negotiation tasks. In this article, we discuss the merits of a data-based approach for the allocation of negotiators to negotiation tasks. We provide a framework for negotiation allocation management that includes a method for assessing negotiator strength. The negotiator strength measure compares observable negotiation outcomes relative to similar outcomes in similar situations. We provide examples for using our framework and show evidence for its appeal when using industry data. We discuss implications for managers and provide key takeaways.     

Cultural Differentiation of Negotiating Agents

Negotiations proceed differently across cultures. For realistic modeling of agents in multicultural negotiations, the agents must display culturally differentiated behavior. This paper presents an agent-based simulation model that tackles these challenges, based on Hofstede’s model of national cultures. The context is a trade network for goods with a hidden quality attribute. The negotiation model is based on the ABMP negotiation architecture and applies a utility function that includes market value, quality preference and risk attitude. The five dimensions of Hofstede’s model are the basis for the modification of ABMP parameters and weight factors in the utility function. The agents can observe each other’s group membership and status. This information is used, along with the indices of Hofstede’s dimensions, to differentiate behavior in different cultural settings. The paper presents results of test runs that verify the implementation of the model. The model helps to explain behaviors of actors in international trade networks. It proves that Hofstede’s dimensions can be used to generate culturally differentiated agents. Further validations of the model with case studies from literature and experiments have yet to be conducted. Extensions can make this model a useful tool for training traders who engage in cross-cultural negotiation and for implementation in negotiation support systems.     

Business-to-Business Negotiations: The Role of Relativism,Deceit, and Opportunism

Purpose: Studies examining the impact of relativism and deceitful tendencies on unethical negotiation tactics have yielded inconsistent results; some studies report a positive relationship, some negative, while some others report a nonexistent relationship between these constructs. These inconsistencies suggest that there may be intervening variables mediating the effects of these factors on unethical negotiation tactics. We propose that opportunism plays an important role in determining the effects of these two antecedents on business managers' perceptions of unethical negotiation tactics.

Method: An Internet-based survey was administered to a sample of managers at U.S. firms engaged in business-to-business marketing. Structural equation modeling techniques were used to evaluate the mediating role of opportunism between deceitful tendencies and relativism on questionable negotiation tactics.

Findings: The analysis supports the hypothesized role of opportunism as a mediating variable. Opportunism was found to play a significant role in mediating the relationships of both relativism and deceitful tendencies on attitudes toward unethical negotiation tactics.

Contribution: In addition to the theoretical contributions suggested here, this article includes suggestions for minimizing the likelihood that a negotiation partner's relativism and deceitful tendencies will negatively impact business negotiation.     

E-Alliance: A Negotiation Infrastructure for Virtual Alliances

In this paper we provide an overview of E-Alliance, a software infrastructure we are developing to support negotiation activities in concurrent inter-organisational alliances. Our baseline is to offer a collaboration framework which fully preserves the autonomy of organisations grouped in an alliance, while enabling concurrency of their activities, flexibility of their negotiations and dynamic evolution of their environment. We propose to support negotiation between the partners within such alliances by combining different technologies, such as software engineering techniques, middleware-level coordination facilities and multiagent systems support. We present our approach in the context of a sample scenario of an alliance where partners are printshops capable of (out/in) sourcing print jobs among them to better accomplish their customers' requests.     

I Expected More from You: The Influence of Close Relationships and Perspective Taking on Negotiation Offers

Three experimental studies show that interpersonal relationships influence the expectations of negotiators at the negotiation table. That is, negotiators expect more generous negotiation offers from close others (Study 1), and when expectations are not met, negative emotions arise, resulting in negative economic and relational outcomes (Study 2). Finally, a boundary condition for the effect of interpersonal relationships on negotiation expectations is shown: perspective taking leads the parties to expect less from friends than from acquaintances (Study 3). The findings suggest that perspective taking helps negotiators reach agreement in relationships. The article concludes with implications for practice and future research directions.     

Adoption of Web-Based Applications in the Financial Sector: The Case of Online Insurance

ABSTRACT

Implementation of new technologies is a never-ending process that attempts to secure the best available tools to accomplish organizational goals. Previous studies on technology implementation discuss the technology adoption process and the multiple factors that are important for making this process successful. This study focuses on the adoption of web-based applications in the insurance industry. An in-depth investigation of relevant literature on the technology adoption process and data collected from insurance companies helped us identify the success factors for online insurance. Relevant factors include infrastructure flexibility, website availability, the degree of business integration, and company age.     

Qualitative representations of negotiations: Tutorial on a rule-based approach

This article introduces a logic-based approach for structuring and representing negotiation problems and for supporting negotiators. It is argued that rule-based formalism allows for integrating decision-making aspects unique and specific to negotiations with general reasoning mechanisms based on rationality postulates. The discussion of the rule-based systems and its application to negotiation modeling and support is preceded by an outline of qualitative and quantitative approaches to problem representation and reasoning, and an overview of predicate calculus. The advantages and disadvantages of rule-based systems and their ability to capture complex negotiation decision processes and reasoning are also given.     

Context-Sensitive Semantic Synchronization Enablement in Electronic Negotiations

When integrating electronic negotiations into real-world business processes, an important problem arising is the magnitude of e-business standards in use. In order to support electronic negotiations when negotiation partners use and need to integrate terms named and formatted according to different document standards, taxonomies or similar standards, references between those standards are needed. In this paper, we present a framework for a negotiation support meta-tool which is designed to maintain and dynamically evolve a collection of such references. To deal with semantic ambiguities in different contexts, it provides users with context-sensitive references. The framework uses technologies from ontological engineering and machine learning, its services can be integrated into existing negotiation applications via web services. Furthermore, it allows parameterzation for the actual domain of use.