Quickly locating efficient, equitable deals in automated negotiations under two‐sided information uncertainty

This paper develops an automated negotiation procedure inclusive of mechanism design and agent design for bilateral multi‐issue negotiations under two‐sided information uncertainty. The proposed negotiation mechanism comprises a protocol called MUP (Monotonic Utility‐granting Protocol) and a matching strategy called WYDIWYG (What You Display Influences What You Get). The proposed preference elicitation procedure makes the agents faithful surrogates of the user they represent while the proposed Frontier Tracking Proposal Construction Algorithm (FTPCA) makes them learn the opponent's flexibility in negotiation and respond appropriately. The mechanism design and the agent design together help in locating efficient and equitable deals quickly. The efficiency, stability, simplicity, distribution symmetry and incentive compatibility of the proposed procedure are demonstrated through negotiation simulation experiments.