Generating Pareto Solutions in a Two-Party Setting: Constraint Proposal Methods

Harri Ehtamo, Raimo P. Hämäläinen, Pirja Heiskanen, Jeffrey Teich, Markku Verkama and Stanley Zionts
Additional contact information
Harri Ehtamo: Systems Analysis Laboratory, Helsinki University of Technology, POB 1100, 02015 HUT, Finland
Raimo P. Hämäläinen: Systems Analysis Laboratory, Helsinki University of Technology, POB 1100, 02015 HUT, Finland
Pirja Heiskanen: Systems Analysis Laboratory, Helsinki University of Technology, POB 1100, 02015 HUT, Finland
Jeffrey Teich: New Mexico State University, Las Cruces, New Mexico 88001
Markku Verkama: Systems Analysis Laboratory, Helsinki University of Technology, POB 1100, 02015 HUT, Finland
Stanley Zionts: State University of New York at Buffalo, Buffalo, New York 14260

Management Science, 1999, vol. 45, issue 12, 1697-1709

Abstract: This paper presents a class of methods, called constraint proposal methods, for generating Pareto-optimal solutions in two-party negotiations. In these methods joint tangents of the decision makers' value functions are searched by adjusting an artificial plane constraint. The problem of generating Pareto-optimal solutions decomposes into ordinary multiple criteria decision-making problems for the individual decision makers and into a coordination problem for an assisting mediator. Depending on the numerical iteration scheme used to solve the coordination problem, different constraint proposal methods are obtained. We analyze and illustrate the behaviour of some iteration schemes by numerical examples using both precise and imprecise answers from decision makers. An example of a method belonging to the class under study is the RAMONA method, that has been previously described from a practical point of view. We present the underlying theory for it by describing it as a constraint proposal method, and include some applications.

Keywords: negotiation analysis; Pareto optimality; joint problem solving; multiple criteria (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.45.12.1697 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:45:y:1999:i:12:p:1697-1709

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().