An Improved Simultaneous-Revelation Resolution Procedure that Induces Truthfulness

DOI: 10.4236/jssm.2009.22012   PDF   HTML     3,377 Downloads   6,266 Views   Citations


Alternating-offer bargaining protocol is the most predominant way for solving bilateral bargaining problem in daily life. However, alternating-offer consumed more time and caused a lower efficiency in some cases. One proposed solution is called simultaneous-revelation resolution by which both parties reveal their reservation prices at the same time. But most simultaneous-revelation resolution procedures are inefficient because they encourage exaggerations. But it is fast and uncomplicated, this resolution procedure still has merit—especially if the parties can refrain from undue exaggera-tion. The paper designs a truthful mechanism for simultaneous-offer bargaining negotiation. In this mechanism, a rule manipulator can induce buyer and seller both to reveal their real prices by introducing suitable adjustment functions. And we show the honest revelations are in Nash equilibrium.

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L. Zhang, C. Wu, Z. Wang and Z. Li, "An Improved Simultaneous-Revelation Resolution Procedure that Induces Truthfulness," Journal of Service Science and Management, Vol. 2 No. 2, 2009, pp. 92-95. doi: 10.4236/jssm.2009.22012.

Conflicts of Interest

The authors declare no conflicts of interest.


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