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Generating Pareto‐optimal boundary points in multiparty negotiations using constraint proposal method

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  • Pirja Heiskanen

Abstract

In this paper a constraint proposal method is developed for computing Pareto‐optimal solutions in multiparty negotiations over continuous issues. Constraint proposal methods have been previously studied in a case where the decision set is unconstrained. Here we extend the method to situations with a constrained decision set. In the method the computation of the Pareto‐optimal solutions is decentralized so that the DMs do not have to know each others' value functions. During the procedure they have to indicate their optimal solutions on different sets of linear constraints. When the optimal solutions coincide, the common optimum is a candidate for a Pareto‐optimal point. The constraint proposal method can be used to generate either one Pareto‐optimal solution dominating the status quo solution or several Pareto‐optimal solutions. In latter case a distributive negotiation among the efficient points can be carried out afterwards. © 2001 John Wiley & Sons, Inc. Naval Research Logistics 48: 210–225, 2001

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  • Pirja Heiskanen, 2001. "Generating Pareto‐optimal boundary points in multiparty negotiations using constraint proposal method," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(3), pages 210-225, April.
    • Handle: RePEc:wly:navres:v:48:y:2001:i:3:p:210-225
    DOI: 10.1002/nav.3
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    1. Heiskanen, Pirja, 1999. "Decentralized method for computing Pareto solutions in multiparty negotiations," European Journal of Operational Research, Elsevier, vol. 117(3), pages 578-590, September.
    2. Teich, Jeffrey E. & Wallenius, Hannele & Kuula, Markku & Zionts, Stanley, 1995. "A decision support approach for negotiation with an application to agricultural income policy negotiations," European Journal of Operational Research, Elsevier, vol. 81(1), pages 76-87, February.
    3. Heiskanen, Pirja & Ehtamo, Harri & Hamalainen, Raimo P., 2001. "Constraint proposal method for computing Pareto solutions in multi-party negotiations," European Journal of Operational Research, Elsevier, vol. 133(1), pages 44-61, August.
    4. Harri Ehtamo & Raimo P. Hämäläinen & Pirja Heiskanen & Jeffrey Teich & Markku Verkama & Stanley Zionts, 1999. "Generating Pareto Solutions in a Two-Party Setting: Constraint Proposal Methods," Management Science, INFORMS, vol. 45(12), pages 1697-1709, December.
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