Negotiations with incomplete information

In recent years, bargaining and negotiations have become areas of growing interest to researchers in business, management, and international trade. Decision-makers in negotiations often do not have complete information about the situation and, therefore, may misunderstand the true intention of their opponents. In this paper, the negotiations on an international economic zone development project are modeled as hypergames, and analyzed by various solution concepts to study the role of misperception in negotiation interactions. Multiple levels of hypergame and sensitivity analysis are explored to find the best strategy that may help the parties to overcome their mistrust and reach the best cooperative solution.