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An e-Learning module on Negotiation Analysis www.negotiation.hut.fi : 

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

SAL e-learning resources in decision making: 

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

Negotiation analysis learning module: 

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

To whom: 

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

Need for negotiation support: 

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.

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 E-negotiation sites

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 e-Learning resources for negotiations

System architecture: 

System architecture

Learning paths and modules: 

Learning paths and modules Learning path: guided route through the learning material Learning module: represents 2-4 h of traditional lectures and exercises

Modular structure: 

Modular structure Assignments Theory Videos Cases Quizzes Learning Paths Introduction to game theory and nego Module 3

Ways of use: 

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


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


Theory Main concepts in brief Systems Analysis Laboratory Helsinki University of Technology


Evaluation Cases Assignments Theory Intro MCDA Game Theory Axiomatic Bargaining


Assignments Software assignments negotiations with the Joint Gains learning by doing

Video clips: 

Video clips


Report templates for assignments

Introduction to game theory and negotiation learning module: 

Introduction to game theory and negotiation learning module

The Jointly Improving Directions Method: 

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

Joint Gains software: 

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

Joint Gains negotiation process: 

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?

Improving directions for a party: 

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

Set of jointly improving directions: 

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

Compromise direction: 

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

Producing joint gains: 

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

Process generates Pareto points: 

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

Joint Gains system architecture: 

Joint Gains system architecture Case Administrator Party N Party 2 Party 1 World Wide Web . . .

Joint Gains case creation: 

Joint Gains case creation

Joint Gains session creation: 

Joint Gains session creation

Joint Gains negotiations: 

Joint Gains negotiations

Joint Gains negotiations: 

Joint Gains negotiations


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

Summary of student evaluations: 

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

Supporting real negotiations ?: 

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 ?

SAL e-learning resources: 

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 !


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.

Web sites: 

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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