TOPSIS Based Approach to Scoring Negotiating Offers in Negotiation Support Systems

Abstract

In this paper we analyze the possibility of applying the technique for order preferences by similarity to ideal solution (TOPSIS) to building the scoring system for negotiating offers. TOPSIS is a multiple criteria decision making method that is based on measuring distances between alternatives under consideration and two bipolar reference alternatives, a positive and negative ideal. Thus the criteria used for the evaluation of alternatives should be described using strong scales. However, in the negotiation, the issues are very often described qualitatively, which results in ordinal or even nominal variables that must be taken into consideration in offers' evaluation process. What is more, TOPSIS may be applied to solving the discrete decision problems while the negotiation space may be defined by the means of continuous variables too. In this paper we try to modify the TOPSIS algorithm to make it applicable to negotiation support and, moreover, discuss the following methodological issues: using TOPSIS for a negotiation problem with continuous negotiation space; selecting the distance measure for adequate representation of negotiator's preferences and measuring distances for qualitative issues. Finally, we propose a simple additional mechanism that allows for building the TOPSIS-based scoring system for negotiating offers and does not involve negotiators in time consuming and tiresome preference elicitation process. This mechanism requires from negotiators to construct examples of offers that represent some categories of quality and then by using a goal programming approach it infers all the parameters required by the TOPSIS algorithm. We also

Development of a Decision Support System for Handling Health Insurance Deduction

“… Integrating the coding policy like DRG or ICD10-CM [26][27][28][29],  Transforming some variables, such as the text data from the initial description of the pathology tests [30], and  Dealing with missing and outlier data [30].…”

The Macbeth Approach for Evaluation Offers in Ill–Structure Negotiations Problems

“…To formalize our model of negotiation we assume that negotiation problem is ill-structured, what means that problem itself as well the negotiation preferences cannot be precisely defined . However, a several multi-criteria decision making techniques can be used to support decision maker in negotiation [see: Salo, Hamalainen, 2010;Brzostowski et al, 2012aBrzostowski et al, , 2012bWachowicz, Błaszczyk, 2012;Roszkowska et al, 2012 we propose here an effective application of the MACBETH approach and M-MACBETH software to handle ill-structured negotiation problems. What is one of the advantages proposed approach is that the MACBETH-based negotiation model makes possible to quantify preferences arising from a verbal evaluation of the quality of negotiation issues and building the scoring function for negotiation packages.…”

“…This contribution consists of the formulating the model of the decision problem in illstructured negotiation, which allows the MACBETH approach to be applied to evaluate the negotiation template and M-MACBETH software to build MACBETH-based scoring system. Let us note, that other approaches to solve ill-structure negotiation problems have also been proposed in literature Wachowicz, Błaszczyk, 2012;.…”

Simple Additive Weighting Method Equipped with Fuzzy Ranking of Evaluated Alternatives

“…The Analytic Hierarchy Process [4]; • Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) [5].…”