Negotiating Complex Contracts

Abstract:     
Work to date on computational models of negotiation has focused almost exclusively on defining contracts consisting of one or a few independent issues and tractable contract spaces. Many real-world contracts, by contrast, are much more complex, consisting of multiple inter-dependent issues and intractably large contract spaces. This paper describes a simulated annealing based approach appropriate for negotiating such complex contracts that achieves near-optimal social welfares for negotiations with binary issue dependencies.

Keywords: non-linear negotiation, interdependent issues

Working Paper Series