Designing a multi-issues negotiation support system based on prospect theory

Considering a prospect-theory type marginal utility function, the S-shape value function is utilized to encode the preferences of negotiators. This article presents the framework of a purchase negotiation support system. Based on the proposed framework, a prototype system was developed to carry on multi-issue decision problems during the purchase negotiation process. To examine the feasibility of using the value function to represent players' preferences in the negotiation system, we examined the final agreements from 25 simulated negotiation scenarios using two different preference settings.