An e-Learning module on Negotiation Analysis www.negotiation.hut.fi

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An e-Learning module on Negotiation Analysis
www.negotiation.hut.fi

• Harri Ehtamo
• Raimo P Hämäläinen
• Ville Koskinen
• Systems Analysis Laboratory
• Helsinki University of Technology

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SAL e-learning resources in decision making
Value Tree Analysis
Group Decisions and Voting
Uncertainty Risk
Negotiation Analysis
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Negotiation analysis learning module

• Material on mathematical models of negotiation
  analysis
• Modular structure
• Focus on learning by doing
• Use of interactive web-based negotiation support
  software, Joint Gains
• Negotiating parties can be in different locations

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To whom

• 1. University students
• Understand basic negotiation analysis models
• Practical experience in analytical negotiation
  support
• 2. Real negotiators or their assistants
• Familiarize with the mathematical modeling
  approach
• Understanding and structuring of game settings
• Role-playing in surrogate negotiations

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Need for negotiation support

• Political and environmental decision making
• Management of natural resources
• Negotiations on discharge limits
• International conflict resolution
• Labor management negotiations
• etc.
• E-commerce applications
• Buyer seller negotiations on price, delivery
  time, quantity, etc.

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E-negotiation sites

• E-learning course at Concordia University
• (G. Kersten)
• Electronic textbook, cases
• Interactive negotiation assignments
• Use of INSPIRE software
• Focus on
• economics
• game theory
• social psychology

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e-Learning resources for negotiations

• Yes! The On-Line Negotiator
• Harvard Business School
• Cases and related quizzes on principled
  negotiation
• Game theory sites, e.g. by A. Roth
• http//www.economics.harvard.edu/aroth/alroth.ht
  ml
• Interactive Java applets, electronic textbooks
• Decision analysis
• Decision analysis society
• http//decision-analysis.society.informs.org
• e-Learning modules at SAL http//www.dm.hut.fi

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System architecture
Client Web browser
HUT SAL server SoftwareWeb-HIRPE Prime
Decisions Joint Gains Opinions Online (voting
version)
Self Assessment Grading Quiz Star QA Tool
set
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Learning paths and modules
Learning path guided route through the learning
material Learning module represents 2-4 h of
traditional lectures and exercises
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Modular structure
Learning Paths
Assignments
Videos
Quizzes
Theory
Cases
Introduction to game theory and nego
Module 2
Module 3
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Ways of use

• Different e-learning resources on the web can be
  used to produce larger learning entities
• Material can be linked
• Embedding e-learning modules into traditional
  courses e.g. on environmental decision making or
  international affairs, e-commerce

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Material

• Basic concepts
• Game theory
• Mathematical models of negotiation analysis
• Examples
• Prisoners dilemma
• Problem of commons
• Buyer seller negotiations
• Joint Gains web software

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Theory

• Main concepts in brief

Systems Analysis Laboratory Helsinki University
of Technology
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Cases

• Buyer Seller Negotiations
• definition of a negotiation problem
• solving a negotiation problem interactively
• use of the Joint Gains software
• Problem of Commons
• solving a negotiation problem by
• value functions

Theory
Evaluation
Assignments
Intro
MCDA
Game Theory
Axiomatic Bargaining
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Assignments

• Quizzes
• 4-6 questions per theory section
• the student is asked to
• interpret graphs

• Software assignments
• negotiations with the Joint Gains
• learning by doing

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Video clips
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Report templates for assignments

• Detailed instructions
• Available as MS Word document
• and HTML

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Introduction to game theory and negotiation
learning module
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The Jointly Improving Directions Method

• Ehtamo, Verkama and Hämäläinen (1999, 2001)
• The procedure generates step-by-step new jointly
  preferred points from an initial point
• Interactive method for reaching Pareto points

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Joint Gains software

• Implements the Jointly Improving Directions
  Method
• 2 to N negotiating parties
• 2 to M continuous decision variables
• Linear inequality constraints on variables
• Administrator can create cases online
• Parties can be distributed on the web

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Joint Gains negotiation process

1. Identification of the most preferred directions
2. Determination of the compromise direction
3. Identification of the most preferred points in
   the compromise direction
4. Determination of the new intermediate point

• How to interactively identify parties most
  preferred
• directions?
• points on the compromise direction?

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Improving directions for a party
Intermediate point
Issue B
A contour of partys utility function
Partys most preferred direction
Issue A
most preferred direction is the gradient of the
utility function
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Set of jointly improving directions
Issue B
Improving directions for party 2
Improving directions for party 1
Jointly improving directions
Issue A
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Compromise direction
The compromise direction bisects the angle
between the parties most preferred directions
Issue B
Issue A
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Producing joint gains
The method terminates at a Pareto point where the
most preferred directions are opposite
Issue B
Issue A
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Process generates Pareto points
Utility of party 2
Pareto frontier
Utility of party 1
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Joint Gains system architecture
Case Administrator
World Wide Web
. . .
Party N
Party 2
Party 1
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Joint Gains case creation
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Joint Gains session creation
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Joint Gains negotiations
Online chat
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Joint Gains negotiations
Preference elicitation
Viewing the results
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Experiences

• Introduction to game theory and negotiation
  analysis learning module
• One of 11 learning sessions in an advanced web
  course on mathematical modeling
• Students worked unassisted in different
  universities in Finland in one or two person
  groups
• 9 groups and 13 students

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Summary of student evaluations

• Enjoyed the session even if the module requires
  advanced skills
• Generally did not need any personal guidance
• Difficulties in the role-playing task in the
  assignment
• Assistance of an instructor would have helped

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Supporting real negotiations ?

• Researchers or assistants can learn by
  role-playing in surrogate negotiations
• Suitability of the Joint Gains approach for
  generating a set of Pareto points ?
• Negotiators use the Joint Gains in facilitated /
  assisted sessions
• Environmental policy problems
• Lake-River regulation policy problem (Hämäläinen
  et al. 2001)
• E-commerce
• Is it of help to generate Pareto points ?

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SAL e-learning resources

• www.dm.hut.fi
• Decision making resources at Systems Analysis
  Laboratory
• Links to student evaluations
• www.mcda.hut.fi
• e-Learning in Multiple Criteria Decision Analysis
• www.negotiation.hut.fi
• e-Learning in Negotiation Analysis
• www.decisionarium.hut.fi
• Decision support tools and resources at Systems
  Analysis Laboratory
• USE IS FREE !

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References

• Ehtamo, H. and R.P. Hämäläinen (2001).
  Interactive Multiple-Criteria Methods for
  Reaching Pareto Optimal Agreements in
  Negotiations. Group Decision and Negotiation,
  Vol. 10, 475-491.
• Ehtamo, H., E. Kettunen and R.P. Hämäläinen
  (2001). Searching for Joint Gains in Multi-Party
  Negotiations. European Journal of Operational
  Research, Vol. 130, No. 1, 54-69.
• Ehtamo, H., M. Verkama and R.P. Hämäläinen
  (1999). How to Select Fair Improving Directions
  in a Negotiation Model over Continuous Issues.
  IEEE Transactions on Systems Man and Cybernetics
  Part C Applications and Reviews, Vol. 29,
  26-33.
• Hämäläinen, R.P. and J. Dietrich (2002).
  Introduction to Value Tree Analysis e-Learning
  Module. Systems Analysis Laboratory, Helsinki
  University of Technology, http//www.mcda.hut.fi/v
  alue_tree/learning-modules/.
• Hämäläinen, R.P., E. Kettunen, M. Marttunen and
  H. Ehtamo (2001). Evaluating a Framework for
  Multi-Stakeholder Decision Support in Water
  Resources Management. Group Decision and
  Negotiation, Vol. 10, 331-353.

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Web sites

• Kersten, G. (2002). Negotiations and
  e-Negotiations Management and Support.
  Concordia University. (referred 24.09.2003)
  http//mis.concordia.ca/projects/negocourse/nego_c
  ourse/index.html
• Roth,A. (1995). Game Theory and Experimental
  Economics Web Site. Harvard University.
  (referred 24.09.2003) http//www.economics.harvard
  .edu/aroth/alroth.html