Negotiating over bundles and prices using aggregate knowledge

D.J.A. Somefun, T.B. Klos, J.A. Poutré, la

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

3 Citations (Scopus)

Abstract

Combining two or more items and selling them as one good, a practice called bundling, can be a very effective strategy for reducing the costs of producing, marketing, and selling goods. In this paper, we consider a form of multi-issue negotiation where a shop negotiates both the contents and the price of bundles of goods with his customers. We present some key insights about, as well as a technique for, locating mutually beneficial alternatives to the bundle currently under negotiation. When the current negotiations progress slows down, the shop may suggest the most promising of those alternatives and, depending on the customers response, continue negotiating about the alternative bundle, or propose another alternative. Extensive computer simulations show that our approach increases the speed with which deals are reached, as well as the number and quality of the deals reached, as compared to a benchmark, and that these results are robust to variations in the negotiation strategies employed by the customers.
Original languageEnglish
Title of host publicationProceedings of the 5th International Conference on Electronic Commerce and Web Technologies (EC-Web)
EditorsK. Bauknecht, M. Bichler, B. Pröll
Place of PublicationBerlin
PublisherSpringer
Pages218-227
DOIs
Publication statusPublished - 2004

Publication series

NameLecture Notes in Computer Science
Volume3182
ISSN (Print)0302-9743

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