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Method and system for dynamic assignment of counterparties in Negotiations

IP.com Disclosure Number: IPCOM000015899D
Original Publication Date: 2002-Jul-20
Included in the Prior Art Database: 2003-Jun-21
Document File: 7 page(s) / 95K

Publishing Venue

IBM

Abstract

The invention solves the problem of dynamic online assignment of potential counterparties for further negotiations between multiple buyers and sellers on multiple negotiable attributes. Problem Solved Two-party (private one-on-one) negotiations constitute a popular mechanism for concluding agreements between counterparties, typically buyers and sellers. When any buyer/seller enters a marketplace, it has to make a choice on the set of parties to shortlist for further negotiations. However, it might not have the capacity or the desire to negotiate with a very large number of counterparties. Further, while party would like to negotiate with the counterparties offering the best deals, at the same time, they would understand the need to be realistic, given the preferences of the counterparties and competition from other parties. Thus, the question of shortlisting for the party, a manageable number of realistic counterparties attains paramount importance. The preferences and requirements of the parties might change over time. Further, new parties looking for potential negotiation partners might enter the marketplace, and negotiating parties might become free to negotiate with others on termination of some of their negotiations.

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Method and system for dynamic assignment of counterparties in Negotiations

The invention solves the problem of dynamic online assignment of potential counterparties for further negotiations between multiple buyers and sellers on multiple negotiable attributes.

Problem Solved

Two-party (private one-on-one) negotiations constitute a popular mechanism for concluding agreements between counterparties, typically buyers and sellers. When any buyer/seller enters a marketplace, it has to make a choice on the set of parties to shortlist for further negotiations. However, it might not have the capacity or the desire to negotiate with a very large number of counterparties. Further, while party would like to negotiate with the counterparties offering the best deals, at the same time, they would understand the need to be realistic, given the preferences of the counterparties and competition from other parties. Thus, the question of shortlisting for the party, a manageable number of realistic counterparties attains paramount importance.

The preferences and requirements of the parties might change over time. Further, new parties looking for potential negotiation partners might enter the marketplace, and negotiating parties might become free to negotiate with others on termination of some of their negotiations.

Invention Overview and Advantages

The invention discloses a method which provides the parties with potential matches for negotiating further. The method can handle situations where the agent preferences are on multiple attributes related to the counterparties and their offers. It is also applicable even in a dynamic situation where the preferences and/or requirements of different parties change over time, and as parties enter or leave the marketplace. This is achieved by effecting a partial rematching of the parties with a minimal disruption of the existing sets of matches.

The method attempts to provide a realistic set of potential counterparties to parties, thereby increasing chances of successful agreements, while at the same time reducing the time and effort incurred in search and negotiation. It even allows parties to choose how many counterparties they wish to simultaneously negotiate with at any time. Further, instead of suggesting a final solution, it leaves room for the parties to negotiate further on their own and reach mutually acceptable closures.

Description

The present invention provides a method and a computer implementable system which allows buyers and sellers to identify potential counterparties for negotiating further where the negotiations may be on multiple attributes. Each party may be willing to negotiate with only a limited number of counterparties. At any point of time, a party can indicate to the online intermediary its willingness or otherwise to receive fresh proposal from then on. It can optionally

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also specify threshold conditions for one or more attributes (or for the overall utility of an offer...