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e-Learning: Negotiation Analysis Module

Learn basic negotiation analysis models and gain practical experience in analytical negotiation support through this interactive web-based learning module.

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e-Learning: Negotiation Analysis Module

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  1. An e-Learning module on Negotiation Analysiswww.negotiation.hut.fi Harri Ehtamo Raimo P Hämäläinen Ville Koskinen Systems Analysis Laboratory Helsinki University of Technology

  2. SAL e-learning resources in decision making Value Tree Analysis Group Decisions and Voting Negotiation Analysis Uncertainty & Risk

  3. Negotiation analysis learning module • Material on mathematical models of negotiation analysis • Modular structure • Focus on learning by doing • Use of interactive web-based negotiation support software, Joint Gains • Negotiating parties can be in different locations

  4. To whom 1. University students • Understand basic negotiation analysis models • Practical experience in analytical negotiation support 2. Real negotiators or their assistants • Familiarize with the mathematical modeling approach • Understanding and structuring of game settings • Role-playing in surrogate negotiations

  5. Need for negotiation support • Political and environmental decision making • Management of natural resources • Negotiations on discharge limits • International conflict resolution • Labor – management negotiations • etc. • E-commerce applications • Buyer – seller negotiations on price, delivery time, quantity, etc.

  6. E-negotiation sites • E-learning course at Concordia University (G. Kersten) • Electronic textbook, cases • Interactive negotiation assignments • Use of INSPIRE software • Focus on • economics • game theory • social psychology

  7. e-Learning resources for negotiations • “Yes! The On-Line Negotiator” Harvard Business School • Cases and related quizzes on principled negotiation • Game theory sites, e.g. by A. Roth http://www.economics.harvard.edu/~aroth/alroth.html • Interactive Java applets, electronic textbooks • Decision analysis • Decision analysis society http://decision-analysis.society.informs.org • e-Learning modules at SAL http://www.dm.hut.fi

  8. System architecture Client Web browser HUT SAL server Software:Web-HIRPE Prime Decisions Joint Gains Opinions Online (voting version) Self Assessment & Grading Quiz Star Q&A Tool set

  9. Learning Paths Introduction to game theory and negotiation Quizzes Videos Assignments Theory Cases Evaluation Module 2 Module 3 Value Tree Analysis Learning paths and modules Learning path: guided route through the learning material Learning module: represents 2-4 h of traditional lectures and exercises

  10. Evaluation • Theory • HTML • pages • Case • slide shows • video clips • Web software • Joint Gains • video clips • Assignments • online quizzes • software tasks • report templates • Evaluation • Opinions • Online Value Tree Analysis Learning Paths Quizzes Videos Assignments Cases Theory Modular structure Introduction to game theory and nego Module 2 Module 3

  11. Ways of use • Different e-learning resources on the web can be used to produce larger learning entities • Material can be linked • Embedding e-learning modules into traditional courses: e.g. on environmental decision making or international affairs, e-commerce

  12. Material • Basic concepts • Game theory • Mathematical models of negotiation analysis • Examples • Prisoners’ dilemma • Problem of commons • Buyer – seller negotiations • Joint Gains web software

  13. Introduction Multiple criteria decision making Game theory Axiomatic bargaining Negotiation analysis Jointly improving direction method Value Tree Analysis Theory • Main concepts in brief Systems Analysis Laboratory Helsinki University of Technology

  14. Value Tree Analysis Cases • Buyer – Seller Negotiations • definition of a negotiation problem • solving a negotiation problem interactively • use of the Joint Gains software • Problem of Commons • solving a negotiation problem by • value functions Theory Evaluation Assignments Intro MCDA Game Theory Axiomatic Bargaining

  15. Value Tree Analysis Assignments • Quizzes • 4-6 questions per theory section • the student is asked to • interpret graphs • Software assignments • negotiations with the Joint Gains • learning by doing

  16. Videos illustrating the use of Joint Gains: • Creating a negotiation case • Negotiating with Joint Gains • Viewing the results Value Tree Analysis Video clips

  17. Report templates for assignments • Detailed instructions • Available as MS Word document • and HTML

  18. Introduction to game theory and negotiation learning module

  19. The Jointly Improving Directions Method • Ehtamo, Verkama and Hämäläinen (1999, 2001) • The procedure generates step-by-step new jointly preferred points from an initial point • Interactive method for reaching Pareto points

  20. Joint Gains software • Implements the Jointly Improving Directions Method • 2 to N negotiating parties • 2 to M continuous decision variables • Linear inequality constraints on variables • Administrator can create cases online • Parties can be distributed on the web

  21. Joint Gains negotiation process • Identification of the most preferred directions • Determination of the compromise direction • Identification of the most preferred points in the compromise direction • Determination of the new intermediate point How to interactively identify parties’ most preferred • directions? • points on the compromise direction?

  22. Improving directions for a party Intermediate point Issue B A contour of party’s utility function Party’s most preferred direction Issue A most preferred direction is the gradient of the utility function

  23. Set of jointly improving directions Issue B Improving directions for party 2 Improving directions for party 1 Jointly improving directions Issue A

  24. Compromise direction The compromise direction bisects the angle between the parties’ most preferred directions Issue B Issue A

  25. Producing joint gains The method terminates at a Pareto point where the most preferred directions are opposite Issue B Issue A

  26. Process generates Pareto points Utility of party 2 Pareto frontier Utility of party 1

  27. WWW Browser SERVER Mediator software WWW Browser WWW Browser WWW Browser Joint Gains system architecture Case Administrator World Wide Web . . . Party 1 Party N Party 2

  28. Joint Gains case creation

  29. Joint Gains session creation

  30. Joint Gains negotiations Online chat

  31. Joint Gains negotiations Preference elicitation Viewing the results

  32. Experiences • Introduction to game theory and negotiation analysis learning module • One of 11 learning sessions in an advanced web course on mathematical modeling • Students worked unassisted in different universities in Finland in one or two person groups • 9 groups and 13 students

  33. Summary of student evaluations • Enjoyed the session even if the module requires advanced skills • Generally did not need any personal guidance • Difficulties in the role-playing task in the assignment • Assistance of an instructor would have helped

  34. Supporting real negotiations ? • Researchers or assistants can learn by role-playing in surrogate negotiations • Suitability of the Joint Gains approach for generating a set of Pareto points ? • Negotiators use the Joint Gains in facilitated / assisted sessions • Environmental policy problems • Lake-River regulation policy problem (Hämäläinen et al. 2001) • E-commerce • Is it of help to generate Pareto points ?

  35. SAL e-learning resources • www.dm.hut.fi • Decision making resources at Systems Analysis Laboratory • Links to student evaluations • www.mcda.hut.fi • e-Learning in Multiple Criteria Decision Analysis • www.negotiation.hut.fi • e-Learning in Negotiation Analysis • www.decisionarium.hut.fi • Decision support tools and resources at Systems Analysis Laboratory USE IS FREE !

  36. References Ehtamo, H. and R.P. Hämäläinen (2001). “Interactive Multiple-Criteria Methods for Reaching Pareto Optimal Agreements in Negotiations”. Group Decision and Negotiation, Vol. 10, 475-491. Ehtamo, H., E. Kettunen and R.P. Hämäläinen (2001). “Searching for Joint Gains in Multi-Party Negotiations”. European Journal of Operational Research, Vol. 130, No. 1, 54-69. Ehtamo, H., M. Verkama and R.P. Hämäläinen (1999). “How to Select Fair Improving Directions in a Negotiation Model over Continuous Issues”. IEEE Transactions on Systems Man and Cybernetics – Part C: Applications and Reviews, Vol. 29, 26-33. Hämäläinen, R.P. and J. Dietrich (2002). Introduction to Value Tree Analysis: e-Learning Module. Systems Analysis Laboratory, Helsinki University of Technology, http://www.mcda.hut.fi/value_tree/learning-modules/. Hämäläinen, R.P., E. Kettunen, M. Marttunen and H. Ehtamo (2001). “Evaluating a Framework for Multi-Stakeholder Decision Support in Water Resources Management”. Group Decision and Negotiation, Vol. 10, 331-353.

  37. Web sites Kersten, G. (2002). “Negotiations and e-Negotiations: Management and Support”. Concordia University. (referred 24.09.2003) http://mis.concordia.ca/projects/negocourse/nego_course/index.html Roth,A. (1995). “Game Theory and Experimental Economics Web Site”. Harvard University. (referred 24.09.2003) http://www.economics.harvard.edu/~aroth/alroth.html

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