A Hybrid Conjoint Measurement and Bi-Criteria Model for a Two Group Negotiation Problem

Madhukar G. Angur, Vahid Lotfi, and Joseph Sarkis

Socioeconomic Planning Sciences, Vol. 30, No. 3, pp. 195-206, 1996

A hybrid negotiation model is presented for use by a mediator resolving a dispute between two groups having a conflicting set of goals. A conjoint measurement technique is used to develop group members' utility functions and preference structures. The members' utilities are then aggregated and used as input to construct the bi-criteria mixed integer linear programming negotiation model. Using an augmented Tchebycheff procedure, several efficient solutions are generated. These solutions are then used by a mediator as potential compromise contracts. The model is empirically tested useing graduate students as decision makers in a marketing channel negotiation experiment. The results provided significant support for the proposed model.

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