Fuzzy utility and inference system for bilateral negotiation

Abstract

In this paper the development of a fuzzy logic based software agent for bilateral e-negotiation is considered. The developed fuzzy logic based intelligent agent is applied to a laptop purchasing model which allows users that have limited knowledge on different range of laptops available, to define the different attributes of laptop in human language such as low, medium or high price, speed, screen size and other attributes. The intelligent agent then performs an automatic evaluation on how close an item matches user preferences using fuzzy logic based decision-making built into the intelligent agent. We develop tactic for the intelligent agent so that it can change its decision making for example how much the agent should increase counter offer in its negotiation, depending on laptop utility score, offer price of the laptop and remaining negotiation time. Simulation results show that the buyer agent concedes more (i.e. raises its offer price) if laptop attributes being negotiated meets its client preferences better and concedes less if otherwise.