hicss 36 on the e-negotiation of unmatched logrolling views

HICSS 36HICSS 36

On the e-Negotiation of On the e-Negotiation of Unmatched Logrolling ViewsUnmatched Logrolling Views

Presenter Presenter S.C. Cheung S.C. Cheung [email protected]@cs.ust.hk

Department of Computer ScienceDepartment of Computer ScienceHong Kong University of Science and TechnologyHong Kong University of Science and Technology

Co-authors Co-authors Patrick C.K. Hung Patrick C.K. Hung [email protected]@csiro.auDickson K.W. Chiu Dickson K.W. Chiu [email protected]@cse.cuhk.hk

mailto:[email protected]

22HICSS36 - sccHICSS36 - scc On the e-Negotiation of Unmatched Logrolling ViewsOn the e-Negotiation of Unmatched Logrolling Views

OutlineOutline

IntroductionIntroduction

Motivating ExampleMotivating Example

Offers MakingOffers Making

Offers MatchingOffers Matching

Tradeoff EvaluationTradeoff Evaluation

Offer AcceptanceOffer Acceptance

e-Negotiation Process Modele-Negotiation Process Model

Conclusion & Future WorkConclusion & Future Work


Contract Template & IssuesContract Template & IssuesSuccessful negotiation leads to a contract.Successful negotiation leads to a contract.Standard contract templates exist for common business Standard contract templates exist for common business interactions.interactions.

A contract template defines the scope of a contract and A contract template defines the scope of a contract and summarizes the issues to be negotiated.summarizes the issues to be negotiated.

… … This lease will start on <DATE> and last for <PERIOD> year(s). The This lease will start on <DATE> and last for <PERIOD> year(s). The property will be rented with/without* facilities. Tenant is required to pay property will be rented with/without* facilities. Tenant is required to pay landlord a monthly rent of <RENT>. The rent includes/excludes* the landlord a monthly rent of <RENT>. The rent includes/excludes* the management fee. …management fee. … Example of a lease contract templateExample of a lease contract template

Issues: DATE, PERIOD, RENT, facilities provision, management fee Issues: DATE, PERIOD, RENT, facilities provision, management fee inclusion, …inclusion, …


LogrollingLogrolling

Negotiation is an iterative process deciding Negotiation is an iterative process deciding acceptable values of these issues.acceptable values of these issues. In each iteration, a party performs tradeoff evaluation across In each iteration, a party performs tradeoff evaluation across

various issues and make offers/counter-offers.various issues and make offers/counter-offers. Tradeoff evaluation often requires logrolling – the exchange Tradeoff evaluation often requires logrolling – the exchange

of loss in some issues for gain in others.of loss in some issues for gain in others.

Problems:Problems: What if utility functions that precisely define tradeoff evaluation What if utility functions that precisely define tradeoff evaluation

are unavailable?are unavailable? What if each negotiation party adopts a different tradeoff What if each negotiation party adopts a different tradeoff

evaluation model, resulting in unmatched logrolling views?evaluation model, resulting in unmatched logrolling views? How to match unmatched logrolling views?How to match unmatched logrolling views? Can privacy of individual logrolling views be protected?Can privacy of individual logrolling views be protected?


Motivating Example - LeaseMotivating Example - LeasePeriod Facilities

FacilitiesAllowance

Start Date

Basic Rent

Period

Facilities

Facilities Allowance

Start Date

Basic Rent

Landlord

Tenant

Mgt Fee

Mgt FeeAllowance

Mgt Fee

Mgt FeeAllowance

Logrolling Sets

Rent

Rent

f: { Rent = Basic Rent + Facilities Allowance + Mgt Fee Allowance }

Logrolling View

of T

enant

Logrolling View

of Landlord


Logrolling View of LandlordLogrolling View of Landlord

The landlord’s primary concern is to let the flat The landlord’s primary concern is to let the flat as early as possible.as early as possible.Provision of facilities is negotiable subjected to a Provision of facilities is negotiable subjected to a longer lease and some increase in rent.longer lease and some increase in rent.The inclusion of estate management fee is The inclusion of estate management fee is negotiable subjected to some increase in rent.negotiable subjected to some increase in rent.

Period Facilities

FacilitiesAllowance

Start Date

Basic Rent

Landlord

Mgt Fee

Mgt FeeAllowance

Rent


Logrolling View of TenantLogrolling View of Tenant

The tenant’s primary concern is to have a The tenant’s primary concern is to have a shorter lease, leaving flexibility for potential job shorter lease, leaving flexibility for potential job relocation.relocation.

Willing to pay a higher rent if facilities and/or Willing to pay a higher rent if facilities and/or estate management fee are included. estate management fee are included.

Period

Facilities

Facilities Allowance

Start Date

Basic Rent

Tenant

Mgt Fee

Mgt FeeAllowance

Rent


How to Evaluate Tradeoffs?How to Evaluate Tradeoffs?

Start Date Basic Rent

1M 19K

2M 20K

3M 21K

Facilities Period Facilities Allowance

Excluded 1 yr 0

Included 2 yrs 2K

Mgt Fee Mgt Fee Allowance

Excluded 0

Included 1K

LandlordPeriod Basic Rent

1 yr 18K

2 yrs 17K

Start Date Facilities Facilities Allowance

1M Included 2K

2M Included 2K

2M Excluded 0

3M Excluded 0

Mgt Fee Mgt Fee Allowance

Excluded 0

Included 1K

Tenant

logrollingsets


Exchanging Offers in Unmatched ViewsExchanging Offers in Unmatched Views

Period Basic Rent 1 yr 18K 2 yrs 17K


1M Included 2K 2M Included 2K 2M Excluded 0 3M Excluded 0

Mgt Fee Mgt Fee Allowance Excluded 0 Included 1K

Start Date Basic Rent 1M 19K 2M 20K 3M 21K

Facilities Period Facilities Allowance Excluded 1 yr 0 Included 2 yrs 2K


Start Date Facilities Lease Period Mgt Fee Rent

1M Excluded 1 yr Excluded 19K

1M Excluded 1 yr Included 20K

1M Included 2 yrs Excluded 21K

1M Included 2 yrs Included 22K









Logrolling SetsOffer by means ofAggregated View

e-NegotiationSupport System (eNSS)

Negotiation Party

Negotiation Party

e-NegotiationSupport System (eNSS)

Start Date Facilities Period Mgt Fee Rentlandlord Renttenant Rentdiff=(Rentlandlord

- Renttenant)

1M Excluded 1 yr Excluded 19K N/A N/A

1M Excluded 1 yr Included 20K N/A N/A

1M Included 1 yr Excluded N/A 20K N/A

1M Included 1 yr Included N/A 21K N/A

1M Included 2 yrs Excluded 21K 19K 2K

1M Included 2 yrs Included 22K 20K 2K

2M Excluded 1 yr Excluded 20K 18K 2K

2M Excluded 1 yr Included 21K 19K 2K

2M Excluded 2 yrs Excluded N/A 17K N/A

2M Excluded 2 yrs Included N/A 18K N/A









3M Included 2 yrs Excluded 23K N/A N/A

3M Included 2 yrs Included 24K N/A N/A














Aggregated View Aggregated View

Logrolling Sets

Offer Matching Table

Logrolling Sets

Logrolling Sets

Tradeoff evaluationIn Logrolling View

Tradeoff evaluationIn Logrolling View


Construction of Aggregated ViewConstruction of Aggregated View

Given N logrolling sets LGiven N logrolling sets L11, L, L22, …, L, …, LNN

Aggregrated View = f(LAggregrated View = f(L11 x L x L22 x … x L x … x LNN))

Start Date Basic Rent 1M 19K

Facilities Period Facilities Allowance Excluded 1 yr 0

Mgt Fee Mgt Fee Allowance Excluded 0

3 entries in Logrolling sets Start Date Facilities Period Mgt Fee Rent


f: Rent = Basic Rent + Facilities Allowance + Mgt Fee Allowance

An entry in aggregated view

Cartesian Product















Aggregated View due to LandlordAggregated View due to Landlord

Start Date Basic Rent 1M 19K 2M 20K 3M 21K

Facilities Period Facilities Allowance Excluded 1 yr 0 Included 2 yrs 2K


Logrolling Sets of Landlord’s Offer

Aggregated View


Aggregated View due to TenantAggregated View due to TenantStart Date Facilities Period Mgt Fee Rent

1M Included 1 yr Excluded 20K

1M Included 1 yr Included 21K





2M Excluded 2 yrs Excluded 17K

2M Excluded 2 yrs Included 18K









Period Basic Rent 1 yr 18K 2 yrs 17K


1M Included 2K 2M Included 2K 2M Excluded 0 3M Excluded 0



Offer Matching TableOffer Matching TableStart Date Facilities Period Mgt Fee Rentlandlord Renttenant Rentdiff=(Rentlandlord

- Renttenant)

1M Excluded 1 yr Excluded 19K N/A N/A

1M Excluded 1 yr Included 20K N/A N/A

















3M Included 2 yrs Excluded 23K N/A N/A

3M Included 2 yrs Included 24K N/A N/A

Merging two aggregated

views

Start Date Facilities Period Mgt Fee Rent

















Start Date Facilities Period Mgt Fee Rent


















Tradeoff Evaluation by TenantTradeoff Evaluation by Tenant

Tradeoff evaluation is an Tradeoff evaluation is an iterative process.iterative process.

In each iteration, party picks In each iteration, party picks the most concerned logrolling the most concerned logrolling set which has not yet set which has not yet evaluated.evaluated.

Map entries in the offer Map entries in the offer matching table to the matching table to the logrolling set.logrolling set.

Period

Basic Rent

Period Basic Rent Min Difference 1 yr 18K 2K 2 yrs 17K 2K

Entries in the original logrolling setsupplied by Tenants

Minimum difference in each combination of template variablesin offer matching table

Most concerned logrolling set


Revision of Reservation PricesRevision of Reservation Prices

Revise reservation prices, if applicable.Revise reservation prices, if applicable.

Proceed to further tradeoff evaluation Proceed to further tradeoff evaluation based on an entry, which has or has not based on an entry, which has or has not been revised.been revised.

Period Basic Rent Min Difference 1 yr 18K 19K 2K 1K 2 yrs 17K 2K


Further Tradeoff EvaluationFurther Tradeoff Evaluation

Start Date Facilities Facilities Allowance Min Difference 1M Included 2K N/A 2M Included 2K N/A 2M Excluded 0 1K 3M Excluded 0 2K 1M Excluded N/A N/A 3M Included N/A N/A

Combinations not found in the original logrolling set

Combinations not found in counterparty’s offer

Possible options

Evaluation based on Period = 1 year and Basic Rent = 19K


Tradeoff Evaluation ScenarioTradeoff Evaluation Scenario

A scenario of tradeoff A scenario of tradeoff evaluation can be evaluation can be represented in a tree.represented in a tree.

A party evaluates A party evaluates his/her logrolling sets his/her logrolling sets in turn.in turn.


Tradeoff Evaluation ScenariosTradeoff Evaluation Scenarios

[M g t F e e = E xc lu d ed , M g t F ee A llo w an ce = 0 K ]

[M g t F e e = In clu d ed , M g t F ee A llo w an c e = 1 K ]

[S ta rt D a te = 1 M , Fa c ilit ies = Inc lu d ed , F a cilit ie s A llo w an c e = 2 K ] (cf. F ig u re 1 5 )

[P e riod = 1 yr, B a sic R e n t = 1 8K ] (cf. F ig u re 1 4 )

...

[P e rio d = 2 yr, B a s ic R e n t = 1 7 K ]

...

[S ta rt D a te = 2 M , F ac ilit ie s = In clu d e d , F a c ilitie s A llow a n ce = 2 K ]

...

[S ta rt D a te = 2 M , F ac ilit ie s = E xclu d e d , F a c ilitie s A llow a n c e = 0 K ]

...

A T rad e o ff E va lu a tio n S c en a rio (II)

Tim

e

A party may A party may arbitrarily change arbitrarily change its evaluation order its evaluation order of logrolling sets.of logrolling sets.A party evaluates A party evaluates tradeoff and tradeoff and revises its revises its reservation prices reservation prices based on their based on their individual logrolling individual logrolling views.views.


Candidate Acceptable OfferCandidate Acceptable OfferStart Date Facilities Period Mgt Fee Rent





Successful negotiation results in a set of Successful negotiation results in a set of acceptable offersacceptable offersSelection of each offer leads to a contract.Selection of each offer leads to a contract. … … The lease will start on June 20, 2002 and last for The lease will start on June 20, 2002 and last for

two years. The property will be rented with facilities. two years. The property will be rented with facilities. Tenant is required to pay landlord a monthly rent of Tenant is required to pay landlord a monthly rent of $20,000. The rent excludes the management fee. …$20,000. The rent excludes the management fee. …


Candidate Acceptable OfferCandidate Acceptable OfferStart Date Facilities Period Mgt Fee Rent





The first acceptable offer represents The first acceptable offer represents Landlord compromises the rent (21KLandlord compromises the rent (21K20K) but enjoys 20K) but enjoys

the gain (1M early start date & 2 yrs long lease).the gain (1M early start date & 2 yrs long lease). Tenants compromises the lease period (1yrTenants compromises the lease period (1yr2yrs) but 2yrs) but

enjoys the gain (comfortable rent).enjoys the gain (comfortable rent).

This is a win-win situation after a logrolling process.This is a win-win situation after a logrolling process.


Negotiation ProcessNegotiation Process

select e-Contracttemplate

identifylogrolling issues

define issues and criteria

make offers &counter offers

validateconsistency

introduceauxiliary variables &

specify relations

[all issues have been mapped]

[consistent]

[inconsistent]

creation ofe-Contract

[reach consensus on all reservation prices]

[quit]

map issues tovariables

organizelogrolling views


ConclusionConclusionWe have proposed a pragmatic approach to We have proposed a pragmatic approach to negotiation under unmatched logrolling views.negotiation under unmatched logrolling views.It does not require the use of utility functions and It does not require the use of utility functions and normative models.normative models.It does not require any exchanges of logrolling It does not require any exchanges of logrolling views between negotiation parties. This views between negotiation parties. This facilitates privacy of logrolling views, which facilitates privacy of logrolling views, which represents individual’s tradeoff evaluation represents individual’s tradeoff evaluation model.model.A prototype is being built based on the approach A prototype is being built based on the approach proposed.proposed.


Future WorkFuture Work

To investigate multi-lateral negotiations.To investigate multi-lateral negotiations.

To support changes of logrolling views during To support changes of logrolling views during negotiation.negotiation.

To apply the approach to other work [1,2,3,4,5]. To apply the approach to other work [1,2,3,4,5].

1. S.C. Cheung, Dickson K.W. Chiu and Sven Till, A Data-Driven Methodology to Extending Workflows to E-services over the Internet (HICSS-36), January 2003.

2. Dickson K.W. Chiu, S.C. Cheung and Sven Till, A Three Layer Architecture for E-Contract Enforcement in an E-Service Environment (HICSS-36), January 2003.

3. Dickson K.W. Chiu, Wesley C.W. Chan, Gary K.W. Lam, S.C. Cheung and Franklin T. Luk, An Event Driven Approach to Customer Relationship Management in e-Brokerage Industry (HICSS-36), January 2003.

4. Patrick C.K. Hung, A Primitive Study of Logrolling in e-Negotiation (HICSS-36), January 2003. 5. S.C. Cheung and Dickson K.W. Chiu, A Watermarking Infrastructure for Enterprise Document

Management (HICSS-36), January 2003.

Questions and AnswersQuestions and Answers

[email protected]@cs.ust.hk

[email protected]@csiro.au

[email protected]@cse.cuhk.hk




Meta-modelMeta-model

TemplateVariable

Party NegotiationProcess

Accepted Reservation Price

ReservationPrice

makes

1..*

1..*

holds

1..*

1..*

*

1..*

2..*

involves

Issue1

Contract

AuxiliaryVariable

relates toVariable

Accepted Offer

maps to

Offer

e-Contract Conceptual

Model

e-Negotiation Conceptual

Model

1

1..*

1

**

resolves 1..*Task 1

Logrolling Set

Logrolling View

maps to 11

hicss 36 on the e-negotiation of unmatched logrolling views

Documents

unmatched logrolling

higher rent

rent includesexcludes

monthly rent

management fee inclusion

facilities provision

provision of facilities

lease contract templateissues