A Review of Research Literature on Bilateral Negotiations

Automated bilateral negotiations are an important mechanism to realize ecient distributed matching in the Navy detailing system, and the presence of outside options is an outstanding feature of the negotiations. In this report we provide an extensive literature review on the research of bilateral negotiations in the elds of Economics and Arti cial Intelligence. Three important dimensions are described to identify the negotiation environment and to build a research model. Preliminary considerations and suggestions are given in these dimensions on modelling the system. The review suggests that negotiations with outside options is a new and important research problem, yet it can be addressed, based on the existing work