Fuzzy Negotiation Solutions of n-Person Cooperative Games by Knowledge Engineering in Bargaining

Erick González (), Rafael A. Espín () and Gustavo Mazcorro ()
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Erick González: Higher Institute of Technologies and Applied Sciences
Rafael A. Espín: Higher Technical Institute “José Antonio Echeverría”
Gustavo Mazcorro: Instituto Politécnico Nacional-UPIICSA, Té 950

Group Decision and Negotiation, 2012, vol. 21, issue 2, No 2, 133-152

Abstract: Abstract A model for negotiation is developed upon the basis of a previous model called Fuzzy Negotiation Solution by Knowledge Engineering. The new model, called Compensatory Negotiation Solution by Knowledge Engineering and FNSKE are based on the combination of knowledge of experts in negotiation, rather than on classical notions of rationality. The experts in negotiation present four propositions in a non-mathematical way and with a natural language, according to the theory of Knowledge Engineering. In the CNSKE model, knowledge is represented through logic predicates, and the calculations are made using the Compensatory Fuzzy Logic system. CFL is a system whose operators satisfy the axioms of Utility. The CFL operators, especially because of the compensation property, are more adequate than the norm and co-norm’s operators to model human decision-making, according to empirical results. The Good Deal Index in CNSKE is statistically estimated from the GDI in FNSKE. This is a quantitative index, which provides the solution concept. The fuzzy function f(C) represents the likelihood the players of a coalition C to reach an agreement into this coalition. Counterpart Convenience Indexes 1, 2 allow each player to select the best coalition for negotiation. The advantage of CNSKE over FNSKE is that the idempotency of conjunction and disjunction operators give every membership function -obtained from the predicates- the possibility to be interpreted by itself. Hence, the truth-values of the CNSKE membership functions can be semantically interpreted. In addition, CNSKE can be easily applied to solve real negotiation problems.

Keywords: Cooperative n-person games; Fuzzy logic; Bargaining; Negotiation; Knowledge engineering (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1007/s10726-011-9244-8

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