Dynamic Plots in Virtual Negotiations

Abstract

Advanced information and communications technology provides the basis for continuous monitoring of, and rapid data exchange about, crucial operations. Of special interest are those conflict situations where organizations continuously readjust mutually affecting decisions, considering the competitors' choices, but without communicating verbally. An example refers to trucking companies who base their decisions, which trucks to assign to different routes, on the competitors' assignments. To support the decision process for these types of virtual negotiation settings, a new dynamic plot approach is proposed. Dynamic plots can be used to visualize the decision topology of all parties and the impact of making a decision on all parties. Of special interest in this paper are dynamic plots with an individual stability equilibrium, where competitors do not revise their decisions unless a change in the market occurs. Dynamic plots for 2 × 2 conflict situations are discussed first, followed by a discussion of 3 × 3 conflict situations. The paper closes with a discussion of a computer implementation and empirical evidence of virtual negotiations with dynamic plots. The results of these virtual negotiations suggest that dynamic plots stimulate virtual negotiations and support efficiency, equity, and system optimum for these types of real-time negotiations.