The Internet is quickly changing the way
business-to-consumer
and business-to-business commerce is conducted in the world. The
Electronic Revolution has also spawned a trend of price wars and, in
some
instances, chaos because of the zero-sum nature of the electronic
channel.
The technology has created an opportunity to get beyond the lose-lose
nature of single issue price wars by determining sellers? and buyers?
preferences across multiple issues and encouraging negotiations, thereby
creating possible joint gains for all parties. We develop simple
multiple
issue algorithms and heuristics that could be used in electronic
auctions
and electronic markets, to match businesses to businesses and consumers
based on dovetailing underlying interests and preferences. We provide
arguments that such dovetailed matches should help stabilize markets and
Bibliographical notes: Dr. Jeffrey Teich is an Associate Professor at
the
New Mexico State University. His research interests and publications
are
in the areas of negotiation modeling and decision support. In
addition,
he has served as Visiting Professor at the Helsinki School of Economics
teaching in its international programs.