A multiagent model of negotiation processes between multiple actors in urban developments: a framework for and results of numerical experiments

We propose a multiagent model in which developers and suppliers negotiate and generate proposals for developing a site, given multiple candidate locations in an urban area. In the model, the developer takes the initiative and coordinates the negotiation process with the aim of obtaining commitments from suppliers to open an outlet at a location. In this process, suppliers indicate their preferences and make yes - no decisions to participate in a proposal. We formulate and investigate two alternative negotiation protocols and various possible decision strategies for the developer and supplier agents. The model is applied to a hypothetical study area to investigate long-term dynamics as a function of the choice of protocol and strategies. We show that the model is capable of reproducing the typical hierarchical structure of real retail systems. Furthermore, it appears that the choice of protocol and strategy has an impact on the degree of spatial clustering of outlets as well as on the performance of each individual supplier. The choice of strategy is particularly critical for relatively weak suppliers. We conclude that the multiagent model is useful for planners, developers, and suppliers to explore the impacts their choices have on outcomes, and we identify promising avenues of future research.