|Publication number||US20080147534 A1|
|Application number||US 11/982,344|
|Publication date||Jun 19, 2008|
|Filing date||Oct 31, 2007|
|Priority date||Jul 12, 1999|
|Also published as||US7296001, US20080027879|
|Publication number||11982344, 982344, US 2008/0147534 A1, US 2008/147534 A1, US 20080147534 A1, US 20080147534A1, US 2008147534 A1, US 2008147534A1, US-A1-20080147534, US-A1-2008147534, US2008/0147534A1, US2008/147534A1, US20080147534 A1, US20080147534A1, US2008147534 A1, US2008147534A1|
|Inventors||Eithan Y. Ephrati, Yoav Shoham, Michael P. Wellman|
|Original Assignee||Ariba, Inc.|
|Export Citation||BiBTeX, EndNote, RefMan|
|Referenced by (17), Classifications (8)|
|External Links: USPTO, USPTO Assignment, Espacenet|
This application claims priority to U.S. Provisional Patent Application No. 60/143,291, filed on Jul. 12, 1999, which is incorporated herein by reference in its entirety.
1. Field of the Invention
The present invention relates generally to a system and method for managing a negotiation. More specifically, a system and method for structured bilateral and multi-lateral negotiations are disclosed.
2. Description of Related Art
The explosive field of online electronic commerce has resulted in a number of online commerce mechanisms. Some of the online electronic commerce mechanisms simply mirror off-line commerce mechanisms while others are unique to the new electronic commerce medium. Generally, a key component of a commerce mechanism is the determination of whether a trade is to take place and, if the trade is to take place, the determination of the terms of the trade, e.g., the goods, services, and/or payments involved.
One example of a commerce mechanism is a take-it-or-leave-it, fixed-terms mechanism. An off-line merchant, such as a local supermarket, is an example of such a mechanism. In particular, the supermarket displays a price and the shopper has the option of purchasing the product at the displayed price or not purchase the product at all. Similarly, an online merchant may display a list of offered products and/or services and the associated prices and/or other attributes, such as delivery method and time. An online electronic shopper may accept the terms by purchasing some of the offered products and/or services via the Internet browser interface or not purchase any of the listed products or services at all.
Another example of a commerce mechanism is an auction. In an auction, the terms of the deal are typically determined through a competitive process in which multiple parties may participate. Generally, the terms of the deal include a price and quantity of the product. A single-sided auction, both online and off-line, is an example of an auction. In a single-sided auction, either a single seller offers one or more products and/or services for sale to one or more competing buyers, or a single buyer offers to purchase one or more products and/or services from one or more competing sellers. Off-line auction commerce mechanism is well known while online auction commerce mechanism is currently an exploding field.
Yet another example of a commerce mechanism is a bilateral negotiation. In a bilateral negotiation, a buyer and a seller trade offers and counter-offers back and forth until either a deal is struck or the bilateral negotiation is somehow terminated. A residential real estate buyer and a residential real estate seller trading offers and counter-offers back and forth is an example of a bilateral negotiation. Examples of bilateral negotiation mechanisms also exist in the online electronic medium. Typical online electronic bilateral negotiation mechanisms generally comprise a structured way of making an initial offer followed by an unstructured bilateral negotiation process between the two parties. In these online bilateral negotiation mechanisms, the electronic medium merely serves as a communication tool, similar to a telephone, facsimile machine, or electronic mail, as well as a vehicle for posting the outcome of the negotiation, if desired.
The negotiation system of Altra Energy Technologies, Inc. (www.altranet.com) provides an example of an online bilateral negotiation for the energy industry. In Altra's online bilateral negotiation system, the negotiating parties can trade in an anonymous automated exchange. In addition, the negotiating parties have the option of selecting a listed offer and entering an informal negotiation process “under the radar screen.” During the negotiation process, the offer is marked as being under negotiation and, upon successful conclusion of the negotiation process, the terms of the negotiated deal are posted.
The negotiation system of CheMatch system (www.chematch.com) provides example of an online bilateral negotiation for the petrochemical industry. Similar to the Altra negotiation system, the negotiating parties post structured offers in the CheMatch system. In particular, the posted offers specify the various attributes of the product for sale, such as price, quantity, purity level, location, delivery time, etc. The negotiation process involves the sending back and forth of English text messages. The fact that an offer is under negotiation is generally signaled to all the market participants. However, unlike the Altra negotiation system, the final terms of the deal between two parties, if a deal is struck, are not released to the other market participants.
The online bilateral negotiation has the advantage being open-ended to allow the negotiating parties to express any comments or offers in natural language, closely resembling the process in the off-line bilateral negotiation process. However, there are many disadvantages to the conventional online bilateral negotiation process. For example, in the conventional online bilateral negotiation process, the negotiating parties are not given assistance in reaching a successful conclusion. In addition, there are no guarantees on the length of the negotiation and there is no coherent notion of the what the current state of the negotiation is that the negotiating party could take in at a glance. Another disadvantage to the conventional online bilateral negotiation process is that there is generally no meaningful way to recover the state of negotiation if the system crashes, i.e. the conventional online bilateral negotiation process does not provide for recoverability. Further, there generally is no coherent notion of what commitments to which any negotiating party can be held prior to the conclusion of the negotiation.
Some negotiation systems overcome some of these disadvantages. See, for example, www.interneg.org. As an example, each offer is typically precisely defined as values for certain attributes, such as price and warranty type. The state of the negotiation at any given point in time is thus generally clear to the negotiators. In such negotiation systems, an informal, natural-language note can augment the structured offer and it is up to the negotiation parties to decide to what extent to rely on the formal versus the informal components of the available information.
Nonetheless, the emphasis in the conventional negotiation systems is the bilateral negotiation. Any multilateral considerations are typically merely secondary. For example, the conventional negotiation system may simply collect backup offers until the current negotiation terminates and thus does not render the negotiation system a true multilateral negotiation system. Thus, what is needed is an electronic negotiation system that manages bilateral and multilateral negotiations within the context of an overall multilateral negotiation environment.
A system and method for managing multilateral negotiations are disclosed. The system and method provide for structured and managed multilateral negotiations. Several inventive embodiments of the present invention are described below.
It should be appreciated that the present invention can be implemented in numerous ways, including as a process, an apparatus, a system, a device, a method, or a computer readable medium such as a computer readable storage medium or a computer network wherein program instructions are sent over optical or electronic communication lines. Several inventive embodiments of the present invention are described below.
The method for managing multilateral negotiations generally includes sending a negotiation initiating offer object to a first negotiating party for specifying rules of the negotiation and for forming a negotiation initiating offer including specification of at least one attribute. The method also includes receiving the negotiation initiating offer from the first negotiating party, sending a counter offer object to a second negotiating party for forming a counter offer to the first negotiating party, receiving the counter offer from the second negotiating party, validating the counter offer if the counter offer complies with the rules of the negotiation, and sending the validated counter offer to the first negotiation party to engage the negotiation parties in an active negotiation. The counter offer object is adapted for specification of at least one additional attribute.
A negotiation facilitator system for managing an electronic negotiation and a computer program product for implementing the methods for managing a multilateral negotiation are also disclosed.
These and other features and advantages of the present invention will be presented in more detail in the following detailed description and the accompanying figures which illustrate by way of example the principles of the present invention.
The present invention will be readily understood by the following detailed description in conjunction with the accompanying drawings, wherein like reference numerals designate like structural elements, and in which:
A system and method for managing multilateral negotiations are disclosed. The following description is presented to enable any person skilled in the art to make and use the invention. Descriptions of specific embodiments and applications are provided only as examples and various modifications will be readily apparent to those skilled in the art. The general principles defined herein may be applied to other embodiments and applications without departing from the spirit and scope of the invention. Thus, the present invention is to be accorded the widest scope encompassing numerous alternatives, modifications and equivalents consistent with the principles and features disclosed herein. For purpose of clarity, details relating to technical material that is known in the technical fields related to the invention have not been described in detail so as not to unnecessarily obscure the present invention.
The buyers 102 may submit multi-attribute offers to the negotiation facilitator system 110 via the network 112. Similarly, the sellers 104 may submit multi-attribute offers to the negotiation facilitator system 110 via the network 112. A multi-attribute offer is one in which the party submitting the bid may specify a plurality attributes of the goods or products subject to negotiation. Although any combination of goods and/or services may be the subject of the negotiation, the examples given herein assume that only goods are the subject of negotiation merely for purposes of clarity. The plurality of attributes specified preferably includes a price as well as other attributes of the goods.
The attributes specified optionally include various quality characteristics of the goods, the time and location of delivery, the quantity, and/or a nominal or baseline price. For example, in the case of a semiconductor chip, quality characteristics such as feature size, speed, power consumption, operating temperature, expected life, warranty, and/or other quality characteristics may be specified by the buyer and/or the seller.
The negotiation facilitator system 110 manages the overall ongoing multilateral negotiations among the sellers and the buyers. At any point in time, the multilateral negotiations managed by the negotiation facilitator system 110 may include one or more bilateral negotiations and/or one or more multilateral negotiations. A bilateral negotiation is a one-to-one negotiation between one buyer and one seller. A multilateral negotiation can be one-to many, i.e., one buyer and multiple sellers or one seller and multiple buyers, or many-to-many, i.e., multiple buyers and multiple sellers. A multilateral negotiation generally includes one or more one-to-one and/or one-to many negotiations each involving the same or similar goods.
The negotiation facilitator system 110 receives the multi-attribute offers from the buyers 102 and sellers 104, facilitates the negotiation among the buyers 102 and sellers 104, and selectively discloses information regarding the negotiation to the buyers and sellers, depending upon their respective status in the negotiation. The various statuses of buyers and sellers will be explained and will become apparent in light of subsequent discussion. The functions and methodologies for the negotiation facilitator system 110 will also be described in more detail.
As shown in
The negotiation initiating object 200 optionally allows the negotiation initiator to select the type or category of goods that is the subject of the offer. Using the selected type of goods, the negotiation facilitator system preferably allows the negotiation initiator to specify or select certain attributes associated with the goods being offered for sale or purchase. The negotiation facilitator system may also automatically include certain attributes, such as quantity or price, and/or require the selection of one or more attributes from each set of attributes. Typical attributes include quantity, price, delivery date, delivery location, and/or quality, such as level of contaminants in parts per million, and/or speed. The attributes are generally selected from a library or database of attributes associated with each type of goods as provided by the negotiation facilitator system.
The negotiation facilitator system may select a set of common attributes for the type of goods by default and/or require inclusion of certain attributes in the negotiation, such as the price and quantity. For each attribute, a domain of acceptable values for the attribute may be defined and provided by the negotiation facilitator system. For example, the domain of values for the zip code of the manufacturing and/or the delivery location attribute may be all five and/or nine digit numbers or all valid zip codes in the U.S. and/or other countries. As another example, the domain of values for the price is optionally all values expressed in dollars and cents and/or other suitable currencies. As yet another example, the domain of values for a size may be non-numerical such as extra small, small, medium, large, and extra large. The negotiation initiator generally specifies a value for each of the attributes selected for the negotiation.
In addition to the subset of the negotiation initiating object 200, the negotiation offer object 300 may also specify additional new attributes not specified by the negotiation initiating offer or another previous offer, such as a counter offer. Thus, throughout the negotiation, the number of attributes specified in an offer can increase. Each new attribute is preferably selected from the database or library of attributes of the negotiation facilitator system by the negotiation party submitting the new offer.
Further, the negotiation offer object 300 may also include whether the offer is directed or undirected. If the offer is undirected, a list of parties eligible or non-eligible to respond to this offer may be selected. This is typically a subset of the parties eligible to participate in the negotiation as specified by the negotiation initiator in the negotiation initiating object. Alternatively, if the offer is directed, the target offer identification is to be provided by the offering party and, as is evident, only the target party is eligible to respond to this offer. In some cases where there is only one possible target offer, the target offer identification need not be provided by the offering party and/or is already provided by the negotiation facilitator system.
For each offer object 300 submitted, the negotiation facilitator system must first validate the offer prior to disclosing the offer to other parties. An offer is valid if it is determined that the offer complies with or satisfies all the relevant rules of the negotiation. If the negotiation facilitator system validates the offer, the offer may automatically be admitted into an active negotiation or the offer may be disclosed to the offeree and the offeree determines whether to enter into an active negotiation with the offeror, depending upon the rules specified by the negotiation initiator. Generally, if the negotiation facilitator system does not validate the offer, the negotiation facilitator system sends an offer invalid message to the offeror and the invalid offer is not disclosed to other parties.
Types of Negotiations
As shown in
In the bilateral negotiation 140, the buyer 102 or the seller 104 submits or posts a negotiation initiating offer. For purposes of discussion and clarity only, it is assumed that the buyer 102 is the negotiation initiator. Information regarding the offer is generally available to the sellers eligible to participate in the negotiation to enable the sellers to counter offer or otherwise respond to the negotiation initiating offer. A seller eligible to participate in this negotiation may respond with an acceptance of the offer or a counter offer to the initial offer. An acceptance in a one-on-one bilateral negotiation would typically result in a deal and thus terminate the negotiation.
With a counter offer, the negotiation facilitator system examines the counter offer to determine whether the counter offer satisfies the rules of the bilateral negotiation. If the counter offer satisfies the rules of the bilateral negotiation, the buyer may outright reject the counter offer. A rejection of a counter offer has the effect of the counter offer having never been made. Alternatively, the buyer 102 may admit the counter offer into the negotiation such that the negotiation and the active link 120 are established between the two parties. Upon admitting a counter offer, a bilateral negotiation is established and no other sellers may participate in the bilateral negotiation. Typically, no other sellers may submit offers to either the buyer 102 or the seller 104 involved in an active one-on-one bilateral negotiation. Alternatively, other sellers and/or buyers may submit backup offers that is optionally not disclosed to the actively negotiating parties 102, 104 of the bilateral negotiation 140 but are stored by the negotiation facilitator system, such as in a buffer.
Once a counter offer is established, the buyer 102 may submit a counter offer to the counter offer of the seller 104. Once a bilateral negotiation is established, the offeree of each counter offer may accept, counter offer, or reject the counter offer. A rejection of a counter offer has the effect of the counter offer having never been made. A rejection returns the negotiation to the state prior to that counter offer being made and is in essence a request for another counter offer. In addition, an acceptance generally forms a deal and terminates the negotiation. Thus, the buyer and seller may accept, counter offer, or reject the counter offer from the other as well as retract its own counter offer prior to the other party responding thereto.
In addition, prior to the other party responding to a counteroffer of one party, that party can optionally retract its latest offer. A retraction of the party's latest offer may be made if the other party to the negotiation has not responded to the offer being retracted. A retraction of a counter offer has the effect that the retracted counter offer was never made and the state of the negotiation returns to prior to the counter offer was made.
The negotiation may terminate upon expiration of the negotiation or upon the failure of one party to make a counter offer within a specified period of time for a counter offer to be made. Furthermore, at any time during the negotiation, either party may also break off the negotiation to terminate the negotiation. Although not preferred, the negotiation facilitator system may alternatively allow the party who did not break off the negotiation to continue with the negotiation as the new negotiation initiator, either with the initial offer or counter offer or the most recent offer of that party open for response. Thus, another bilateral negotiation may be established with the same rules of the original bilateral negotiation.
As there are only two parties in active bilateral negotiation, all information, except the identities of the parties, if desired, are optionally disclosed to the two parties. Typically little or no information is disclosed to those outside of the negotiation. If any information is disclosed to those outside of the negotiation, such information may include all or a portion of the negotiation initiating offer submitted by the buyer 102, and/or the identities of the parties 102, 104 to the negotiation, for example.
The one-to-many multilateral negotiation 150 shown includes one buyer 102 and three sellers 106. As noted above, a one-to-many multilateral negotiation may alternatively include one seller and two or more buyers. However, for purposes of clarity, it is assumed in the examples described herein that the buyer is the negotiation initiation party of the one-to-many multilateral negotiation.
The one-to-many multilateral negotiation 150 may be a switchable bilateral 20 negotiation, as shown in
In the switchable bilateral negotiation, certain rules may be implemented regarding competing offers from inactive sellers. For example, a competing offer may be required to be better than the most recent counter offer of the active seller 106 or may be required to exceed the most recent counter offer of the active seller 106 by a predetermined amount, e.g. 10%, as measured by some objective criteria such as a scoring function.
If the negotiation facilitator system determines that the rules relevant to competing offers are not met, the negotiation facilitator system may send an offer invalid or offer rejected message to the offeror and the offer is optionally never disclosed to other parties. Alternatively, if the negotiation facilitator system determines that the rules relevant to completing offers are met, the active link may automatically be switched to between the buyer 102 and the new active seller. In other words, the seller 106 would be dropped from the active negotiation with a drop message to the seller 106 and the buyer 102 and there would no longer be an active link between the buyer 102 and the seller 106. Seller 106 becomes an inactive seller who can now submit competing offers. The buyer 102 begins active negotiation with the seller 108 that submitted the qualifying competing offer. Alternatively, the active link may be switched by the buyer 102 such that the qualifying competing offer is disclosed to the buyer 102 for consideration of whether to switch the active link by dropping the seller 106, rather than automatically dropping seller 106 for the seller 108 with the qualifying competing offer.
The switchable bilateral negotiation may terminate upon a break off of the negotiation by the buyer, but not by the active seller. In addition, the switchable bilateral negotiation may also terminate upon expiration of the negotiation, upon failure of one party to make a counter offer within a specified period of time for a counter offer to be made, or upon the formation of a deal, e.g. upon an acceptance of the negotiation.
Alternatively, the one-to-many multilateral negotiation 150 may be a concurrent bilateral negotiation. As the name suggests, a concurrent bilateral negotiation is simply one or more bilateral negotiations taking place concurrently. Accordingly, a concurrent bilateral negotiation may have more than one active negotiation link between the one buyer and one or more of the sellers. Thus, there is no switching of the active link and no rules regarding the automatic or manual switching of the active link.
Each seller in a concurrent bilateral negotiation may submit a counter offer to the buyer 102, assuming the counter offer satisfies all relevant rules. Once the negotiation facilitator system validates the offer, an active negotiation may be automatically established between the buyer and the offer-submitting seller or the buyer may have the option to manually choose to enter into active negotiation with the seller by responding with a counter offer.
The concurrent bilateral negotiation may terminate upon a break off of all the concurrent negotiations by the buyer, upon expiration of the negotiation, or upon the formation of a deal, e.g. upon an acceptance of the offer by the buyer. The formation of a deal is typically more complex than in the case of the switchable bilateral negotiation. Although the buyer is involved in more than one bilateral negotiations concurrently, presumably the buyer only desires to enter into one deal with one of the sellers. As is evident, by being involved in more than one bilateral negotiations concurrently, the buyer will have more than one offer outstanding, with some offers more favorable to the buyer than other offers. In the case where the buyer submits an acceptance to a seller's counter offer, a break off message is sent to all other sellers and a deal is made with the terms of the seller's counter offer.
However, the case where a seller submits an acceptance to the buyer's offer to that seller may be more complex. For example, where Seller A submits an acceptance to the buyer's offer to Seller A, the negotiation facilitator system may require a deal to be made with the terms of the buyer's offer to Seller A. More preferably, the negotiation facilitator system may send a request for final offer message to all the sellers such that each seller, including Seller A, can submit one final offer, if desired. The negotiation facilitator system preferably requires each of the seller's final offer to be an improvement, such as by 10%, over the most current offer from that seller in order for that final offer to be validated by the negotiation facilitator system. The deal is preferably selected from the final offers submitted by each of the sellers.
Of course, other deal striking schemes may be implemented. For example, upon an accept message from Seller A, the negotiation facilitator system may allow negotiation by all the parties for a predetermined amount of time, e.g., 20 minutes, the deal being the best offer selected from the outstanding offers at the expiration of the final time period. In each case, all subsequent offers by each seller must be better than the most current offer of that seller in order for that subsequent offer to be validated by the negotiation facilitator system.
In the example shown in
In the example of the many-to-many multilateral negotiation 160 shown in
The many-to-many multilateral negotiation 160 further includes a concurrent bilateral negotiation between Buyer B on the one hand and Sellers A and B on the other hand. Although no active link is established between Buyer B and Seller C, Seller C may submit a qualifying offer to Buyer B such that an active negotiation link would be established between Seller C and Buyer B. It is noted that only active links are established between a buyer and a seller in any given concurrent bilateral negotiations.
Although the above described bilateral negotiations has assumed all active links as in the case of concurrent bilateral negotiation or a single active link as in the case of switchable bilateral negotiation, it is to be understood that a hybrid bilateral negotiation may be established as a stand alone bilateral negotiation or as part of a many-to-many multilateral negotiation. A hybrid bilateral negotiation may include more than one active links as well as one or more inactive links. In other words, a hybrid bilateral negotiation is a combination of the switchable bilateral and the concurrent bilateral negotiations. For example, the hybrid bilateral negotiation has deal forming rules similar to those of the concurrent bilateral negotiation and formation of an active link rules similar to those of the switchable bilateral negotiation.
In addition, in the many-to-many multilateral negotiation 160, an additional rule preferably specifies whether a given party may serve as the active negotiation party in one or more active negotiations. For example, a given buyer may be in a bilateral negotiation with one of the sellers and also in a switchable bilateral negotiation with two or more of the other sellers. Each of the two negotiations would be independent of each other during the negotiation process. Of course, the two negotiations would no longer be independent of each other when an acceptance is submitted or during a deal forming process, for example.
In the many-to-many multilateral negotiation 160, a party may submit an offer that is directed or undirected. As discussed above, a directed offer generally must also include the target party's identification while an undirected offer may also specify parties eligible to respond to the offer. Once a directed offer is validated in a switchable bilateral negotiation, a link, whether active or inactive, is established between the two parties, if a link did not previously exist. In a concurrent bilateral negotiation, the link would be an active negotiation link between the two parties. For an undirected offer, the negotiation facilitator system may determine to which targets the undirected offer would be valid, and, in essence, the undirected offer then becomes similar to a directed offer directed to those targets.
The information disclosed to the parties involved in the many-to-many multilateral negotiation 160 optionally follows the disclosure rules as described above for the switchable and concurrent bilateral negotiations. For example, the disclosure of information within the switchable bilateral negotiation between Buyer A and Sellers A, B and C is similar to that described above for switchable bilateral negotiations.
For each negotiation, whether bilateral, one-to-many multilateral, or many-to-many multilateral, the negotiation facilitator system 110 sets up and maintains a negotiation state machine as shown in the global state diagram 400 of
Once a negotiation initiating offer is made by either a buyer or a seller and validated by the negotiation facilitator system, the negotiation is in an offer outstanding state 406. The negotiation may remain in the offer outstanding state even where a validated response to the negotiation initiating offer has been made. In such a case, the negotiation is in a buffered offer outstanding state as shown by the dashed line 408. The buffered offer outstanding state 408 may occur if, for example, the negotiation facilitator system requires the negotiation initiating offer to be posted for a predetermined period of time prior to admittance of responses such as counteroffers or acceptances.
Upon admittance of a validated response, such as a counteroffer or acceptance, the negotiation is in an active negotiation state 410. Additional responses 412 such as additional counteroffers and rejections and retractions of offers, etc., maintains the negotiation in the active negotiation state 410.
Upon receipt of an acceptance validated by the negotiation facilitator system, the next state of the negotiation depends upon whether the negotiation rules provides for a post-acceptance state shown in state 414. If so, the negotiation is then in the final post-acceptance state 416. The final post-acceptance state 416 may include a call by negotiation facilitator system for a single final offer from each of the negotiating parties within a predetermined period of time or a call by the negotiation facilitator system for all subsequent offers within a predetermined period of time such that each negotiating party may submit as many post-acceptance offers as desired within the time limitations.
Upon termination of the post-acceptance state 416, a deal state 418 is the final state of the negotiation. Alternatively, if the negotiation rules does not provide for a post-acceptance state, such as typically is the case with a bilateral negotiation between two parties, the negotiation proceeds directly to the deal state 418. The deal is made based upon the rules of the negotiation as applied by the negotiation facilitator system.
Alternatively, the negotiation may reach a negotiation break off or termination state 420 when the negotiation breaks off or when the parties fail to strike a deal within some predetermined time limit, for example.
As shown, when the negotiation is in any of the active negotiation states 410A, 410B, 410C between Buyer A and Sellers A, B, and C, respectively, the negotiation can remain in that active negotiation state or transition to one of the other negotiation states. In the latter case, the negotiation state essentially switches from one active negotiation state to another active negotiation state.
Various rules that govern the negotiation are optionally specified by the negotiation initiator and/or set to default values or states by the negotiation facilitator system. The rules define the type of negotiation, i.e., one-to-one bilateral, one-to-many switchable bilateral, one-to-many concurrent bilateral, and many-to-many multilateral negotiation.
The rules are generally static and/or dynamic. The negotiation facilitator system can determine whether the offer satisfies the static rules by examining the offer in isolation, without reference to the history of the negotiation or the current state of the negotiation. On the other hand, to determine whether the offer satisfies the dynamic rules, the negotiation facilitator system must examine the offer in view of the history of the negotiation and/or the current state of the negotiation.
Examples of static rules include rules relating to which parties are eligible to participate in the negotiation, rules relating to which zip codes of the delivery location are allowable, rules relating to the negotiability of the attributes, and rules relating to the format of the input for a given attribute, e.g., dollars and cents for price. Examples of dynamic rules include rules ensuring that the offer is an improvement over or better than the current outstanding offer, rules limiting the number of offers submitted by each buyer or seller, and rules that each offer must be made within a predetermined period of time since the last offer.
The negotiation initiator may specify the negotiability of the attribute value, i.e., whether the value specified for each of the selected attributes is fixed and non-negotiable or negotiable. Thus, another party cannot submit an offer with a different value for an attribute that is fixed and non-negotiable. In addition, the negotiation initiator may specify acceptable ranges of values of the selected attributes from the domain associated with the attribute such that another party cannot submit an offer with a value outside of the acceptable range associated with that attribute. For example, the negotiation initiator may specify that the zip code of the manufacturing and/or the delivery location attribute is some subset of the domain of all U.S. zip codes, e.g., zip codes corresponding to the Southwest region of the U.S. The fixed and non-negotiable attribute rule and the acceptable range rule are additional examples of static rules.
The negotiation initiator preferably specifies the expiration date and time of the negotiation. The time limitation rules are typically dynamic rules. If no convergence or settlement of the negotiation is reached by the expiration of the negotiation such as in the form of a break off of negotiation or an acceptance of the terms of an offer, the negotiation is deemed terminated. The negotiation initiator may optionally specify the expiration date and time of the offer itself. Thus, if there is no response to the initial offer, such as in the form of an acceptance of the initial offer or a counter offer to the initial offer, by the expiration of the offer, the initial offer is deemed withdrawn and the negotiation terminated.
Although not preferred, the negotiation initiator may choose not to specify an expiration of the offer or the negotiation such that the initial offer remains outstanding until a counter offer is received by the negotiation initiator, until break off of negotiations, or until the initial offer is withdrawn.
The negotiation initiator may also select parties eligible or non-eligible to participate in the negotiation. This is another example of a static rule. The negotiation facilitator system preferably defaults to allow all parties to participate in the negotiation.
Further, the negotiation initiator may optionally specify disclosure rules, such as disclosure of the identities of offer submitting parties, and if disclosed, which parties are privy to the identities of the offer submitting parties. For example, the negotiation initiator may specify that all parties are to remain anonymous. In addition, the disclosure rules may include rules governing the disclosure, whether none, portions, or all, of the details of the offers, depending upon whether the offer is the current active offer or a backup offer, for example. The disclosure rules may further include rules governing the disclosure of the details of the deal made through the negotiation. Although some disclosure rules may be dynamic rules, the disclosure rules are generally static rules.
Typically, the disclosure rules allow the disclosure of the information contained in the free text box, as the intent of the free text box is to convey all additional information to others. Thus, although the negotiation facilitator system discloses information according to the well defined disclosure rules, each party may disclose the same and/or various other information in the free text box. However, such information may not be deemed as credible by the receiving party. Thus, the disclosure rules are important in that the negotiation facilitator system may serve as a facilitator and/or source of information with greater credibility.
The negotiation initiator may also define rules relating to offers. For example, a rule may specify whether and when offers are to be submitted to the party to which the offer is targeted for consideration when the target is already in active negotiation with another party. As another example, a rule may require each offer to improve upon the existing current offer by a certain amount, e.g., 10% as measured by some objective criteria such as a scoring function, before the offer is to be even disclosed to the target of the offer for consideration. A scoring function typically involves the weighting of the attributes as defined by the negotiation facilitator system and/or by the negotiation initiator. A rule may also limit the number of offers submitted by each party and/or the number of offers submitted to the negotiation initiator. Rules relating to offers generally define the type of negotiation, i.e. one-to-one bilateral, one-to-many switchable bilateral, one-to-many concurrent bilateral, and many-to-many multilateral negotiation. As is evident, such offer rules may include static and/or dynamic rules.
The negotiation initiator may also define rules relating to other aspects of the negotiation such as deal striking rules. For example, whether an acceptance by a negotiating party directly results in a deal being made with that negotiating party or merely that all negotiation participating parties have one last chance to submit a final offer. As is evident, such deal striking rules may include static and/or dynamic rules.
At step 706, the negotiation state machine is created for maintaining a current state of the negotiation and a history of the negotiation, if desired. The negotiation state machine is updated throughout the negotiation. At step 708, the negotiation facilitator system begins receiving responses such as counter offers.
Alternatively, if the offer is complete, then the negotiation facilitator system proceeds to step 808 to determine whether the offer is valid or qualifying. This determination typically involves ensuring that the offer satisfies all rules, both static and dynamic, specified for the negotiation. If the negotiation facilitator system determines that the offer is valid, then the negotiation facilitator system sends a message to the offeror that the offer is valid and discloses the terms of the offer to the offeree(s) at step 810. On the other hand, if the negotiation facilitator system determines that the offer is 10 not valid, then the negotiation facilitator system sends a message to the offeror, and optionally the offeree, that the offer is rejected at step 812. Preferably, the details of the invalid offer are not disclosed to the offeree. The process 800 then ends. The process 800 may be repeated where the offeror may revise the original offer or submit another offer.
At step 906, the negotiation facilitator system selectively discloses aspects of the admitted offer, such as identities and/or details of the offer, to parties of the negotiation and/or parties outside of the negotiation according to disclosure rules. In particular, the negotiation facilitator system discloses all aspects of the admitted offer, except for the identify of the offeror, if desired, to the offeree(s), i.e., target(s) of the offer. The negotiation facilitator system may disclose some, all, or none of the details relating to the offer to anyone outside of the active negotiation.
At step 908, the negotiation facilitator system sends a counter offer, accept, reject, retract, or break off object to the parties as required or requested. For example, if a seller is the party who submitted a valid counter offer, the buyer may counter offer, accept or reject the offer, or break off the negotiation. In addition, the seller may break off the negotiation or retract the seller's counter offer before the buyer takes action with the buyer's counter offer, acceptance, rejection, or break off.
The above described method and process are preferably implemented in a computer program product having computer codes that perform the various steps of the method and process. The computer codes are preferably stored in a computer readable medium, such as CD-ROM, zip disk, floppy disk, tape, flash memory, system memory, hard drive, and data signal embodied in a carrier wave, such as over a network.
The system bus architecture of computer system 1201 is represented by arrows 1269. However, these arrows are illustrative of any interconnection scheme serving to link the subsystems. For example, a local bus could be utilized to connect the central processor to the system memory and display adapter. Computer system 1201 shown in
While the preferred embodiments of the present invention are described and illustrated herein, it will be appreciated that they are merely illustrative and that modifications can be made to these embodiments without departing from the spirit and scope of the invention. Thus, the invention is intended to be defined only in terms of the following claims.
|Citing Patent||Filing date||Publication date||Applicant||Title|
|US7860780 *||Jan 31, 2007||Dec 28, 2010||Icap Services North America Llc||System and method for processing trading orders to provide “negotiate in the middle” capability|
|US8140406 *||Jan 18, 2007||Mar 20, 2012||Jerome Myers||Personal data submission with options to purchase or hold item at user selected price|
|US8219584||Dec 15, 2005||Jul 10, 2012||At&T Intellectual Property I, L.P.||User access to item information|
|US8392317||Nov 9, 2010||Mar 5, 2013||Ariba, Inc.||Facilitating electronic auction of prepayment of an invoice|
|US8567672 *||Oct 3, 2011||Oct 29, 2013||Ewinwin, Inc.||Location based discounts|
|US8590785 *||Feb 28, 2007||Nov 26, 2013||Ewinwin, Inc.||Discounts in a mobile device|
|US8612300||Sep 30, 2011||Dec 17, 2013||Ariba, Inc.||Buyer/supplier network that aids supplier enablement through collaboration between buyers and suppliers|
|US8682929||Jun 7, 2012||Mar 25, 2014||At&T Intellectual Property I, L.P.||User access to item information|
|US8688537||Jul 5, 2011||Apr 1, 2014||Ariba, Inc.||Maintenance of a company profile of a company associated with a supplier/buyer commerce network|
|US8695877 *||Sep 14, 2010||Apr 15, 2014||Ewinwin, Inc.||Dynamic discount device|
|US8732036||Apr 17, 2011||May 20, 2014||Ariba, Inc.||Supplier/buyer network that provides catalog updates|
|US8799173 *||Jul 27, 2009||Aug 5, 2014||Ebay Inc.||Negotiation platform in an online environment using buyer reputations|
|US8972287||Feb 22, 2010||Mar 3, 2015||Ewinwin, Inc.||Multiple criteria buying and selling model|
|US20090281940 *||Jul 17, 2009||Nov 12, 2009||Luca Technologies, Inc.||Microbial estates for the efficient development and management of biogenic fuel resources|
|US20110004515 *||Jan 6, 2011||Ewinwin, Inc.||Dynamic discount card tied to price curves & group discounts|
|US20120029995 *||Feb 2, 2012||Mesaros Gregory J||Location based discounts|
|US20130151323 *||Dec 6, 2012||Jun 13, 2013||Visa International Service Association||Systems and methods for facilitating issuance and redemption of a reward|
|Cooperative Classification||G06Q50/188, G06Q10/10, G06Q40/04|
|European Classification||G06Q10/10, G06Q40/04, G06Q50/188|