Generating Pareto-optimal boundary points in multiparty negotiations using constraint proposal method

In this paper a constraint proposal method is developed for computing Pareto-optimal solutions in multiparty negotiations over continuous issues. Constraint proposal methods have been previously studied in a case where the decision set is unconstrained. Here we extend the method to situations with a constrained decision set. In the method the computation of the Pareto-optimal solutions is decentralized so that the DMs do not have to know each others' value functions. During the procedure they have to indicate their optimal solutions on different sets of linear constraints. When the optimal solutions coincide, the common optimum is a candidate for a Pareto-optimal point. The constraint proposal method can be used to generate either one Pareto-optimal solution dominating the status quo solution or several Pareto-optimal solutions. In latter case a distributive negotiation among the efficient points can be carried out afterwards.