A hybrid conjoint measurement and bi-criteria model for a two group negotiation problem

A hybrid negotiation model is presented for use by a mediator in resolving a dispute between two groups having conflicting sets of goals and empirically tested using graduate students as decision makers in a marketing channel negotiation experiment.

Abstract

A hybrid negotiation model is presented for use by a mediator in resolving a dispute between two groups having conflicting sets of goals. A conjoint measurement technique is used to develop group members utility functions and preference structures. The members' utilities are then aggregated and used as input to construct a bi-criteria mixed integer linear programming negotiation model. Using an augmented-weighted Tchebycheff procedure, several efficient solutions are generated. These solutions are then used by a mediator as potential compromise contracts. The model is empirically tested using graduate students as decision makers in a marketing channel negotiation experiment. The results provide significant support for the proposed model.