Asserting Fairness through AI, Mathematics and Experimental Economics. The CREA Project Case Study.

4noopenThis is an account of Analytical-Experimental Workgroup role in a two-year EU funded project. A restricted group of economists and mathematicians has interacted with law researchers and computer scientist (in the proposal’s words) “to introduce new mechanisms of dispute resolution as a helping tool in legal procedures for lawyers, mediators and judges, with the objective to reach an agreement between the parties”. The novelty of the analysis is to allow different skills (by legal, experimental, mathematical and computer scientists) work together in order to find a reliable and quick methodology to solve conflict in bargaining through equitable algorithms. The variety of specializations has been the main challenge and, finally, the project’s strength.openMarco Dall'Aglio, Daniela Di Cagno, Vito Fragnelli, Francesca MarazziDall'Aglio, Marco; Di Cagno, Daniela Teresa; Fragnelli, Vito; Marazzi, Francesc

Advances in Negotiation Theory: Bargaining, Coalitions and Fairness

Bargaining is ubiquitous in real-life. It is a major dimension of political and business activities. It appears at the international level, when governments negotiate on matters ranging from economic issues (such as the removal of trade barriers), to global security (such as fighting against terrorism) to environmental and related issues (e.g. climate change control). What factors determine the outcome of negotiations such as those mentioned above? What strategies can help reach an agreement? How should the parties involved divide the gains from cooperation? With whom will one make alliances? This paper addresses these questions by focusing on a non-cooperative approach to negotiations, which is particularly relevant for the study of international negotiations. By reviewing non-cooperative bargaining theory, non-cooperative coalition theory, and the theory of fair division, this paper will try to identify the connection among these different facets of the same problem in an attempt to facilitate the progress towards a unified framework.Negotiation theory, Bargaining, Coalitions, Fairness, Agreements

Advances in Negotiation Theory: Bargaining, Coalitions and Fairness

Bargaining is ubiquitous in real-life. It is a major dimension of political and business activities. It appears at the international level, when governments negotiate on matters ranging from economic issues (such as the removal of trade barriers), to global security (such as fighting against terrorism) to environmental and related issues (e.g. climate change control). What factors determine the outcome of negotiations such as those mentioned above? What strategies can help reach an agreement? How should the parties involved divide the gains from cooperation? With whom will one make alliances? This paper addresses these questions by focusing on a non-cooperative approach to negotiations, which is particularly relevant for the study of international negotiations. By reviewing noncooperative bargaining theory, non-cooperative coalition theory, and the theory of fair division, this paper will try to identify the connection among these different facets of the same problem in an attempt to facilitate the progress towards a unified framework.Negotiation theory, Bragaining, Coalitions, Fairness, Agreements

Advances in negotiation theory : bargaining, coalitions, and fairness

Bargaining is ubiquitous in real life. It is a major dimension of political and business activities. It appears at the international level, when governments negotiate on matters ranging from economic issues (such as the removal of trade barriers), to global security (such as fighting against terrorism) to environmental and related issues (such as climate change control). What factors determinethe outcomes of such negotiations? What strategies can help reach an agreement? How should the parties involved divide the gains from cooperation? With whom will one make alliances? The authors address these questions by focusing on a noncooperative approach to negotiations, which is particularly relevant for the study of international negotiations. By reviewing noncooperative bargaining theory, noncooperative coalition theory, and the theory of fair division, they try to identify the connections among these different facets of the same problem in an attempt to facilitate progress toward a unified framework.Economic Theory&Research,Social Protections&Assistance,Environmental Economics&Policies,Scientific Research&Science Parks,Science Education

Prospects of liberalization for S&T policies in Russia: institutional analysis

The objective of the paper is to define the trajectory of economic institutional reforms in Russia as a framework of S&T policies. The methodology of this research is based upon the institutional matrices theory (Кирдина, 2001; Kirdina, 2003). The hypothesis claims that the “institutional nature” of Russia defines its prospects of liberalization and needs the active implementation of liberal market institutions policy only within a framework of modernization of redistributive state economic system. Modern S&T policy in Russia demonstrates the implications of such kind of development. The new institutional form of State Corporation that is non-profit organization under government regulation has been widely developed for last 3 years. The main sphere of State Corporations activity is high-tech development. The share of State Corporations in the state budget is more than 20% and it is constantly increasing.institutional matrices theory; X- and Y-economies; Russia; state regulation; S&T policy

Negotiation Based Resource Allocation to Control Information Diffusion

Study of diffusion or propagation of information over a network of connected entities play a vital role in understanding and analyzing the impact of such diffusion, in particular, in the context of epidemiology, and social and market sciences. Typical concerns addressed by these studies are to control the diffusion such that influence is maximally (in case of opinion propagation) or minimally (in case of infectious disease) felt across the network. Controlling diffusion requires deployment of resources and often availability of resources are socio-economically constrained. In this context, we propose an agent-based framework for resource allocation, where agents operate in a cooperative environment and each agent is responsible for identifying and validating control strategies in a network under its control. The framework considers the presence of a central controller that is responsible for negotiating with the agents and allocate resources among the agents. Such assumptions replicates real-world scenarios, particularly in controlling infection spread, where the resources are distributed by a central agency (federal govt.) and the deployment of resources are managed by a local agency (state govt.). If there exists an allocation that meets the requirements of all the agents, our framework is guaranteed to find one such allocation. While such allocation can be obtained in a blind search methods (such as checking the minimum number of resources required by each agent or by checking allocations between each pairs), we show that considering the responses from each agent and considering allocation among all the agents results in a “negotiation” based technique that converges to a solution faster than the brute force methods. We evaluated our framework using data publicly available from Stanford Network Analysis Project to simulate different types of networks for each agents

Conflict Resolution in the European Neighbourhood: The Role of the EU as a Framework and as an Actor

The European Union's neighbourhood is rife with secessionist conflicts. The Union's proximity and its magnetic power of attraction has created the potential for a constructive European involvement in these regions. An EU role can be two-fold. First, the EU framework of governance, law and policy can offer a conducive context for the settlement of ethno-political conflicts. Second, the Union can act in its neighbouring regions to generate incentives for the settlement and ultimate resolution of conflict. But to what extent can the Union export its forms of governance in a manner that can contribute to the amelioration and resolution of conflict? What instead are the mechanisms and their limits through which EU actions or inactions could alter the incentive structure underpinning conflict? This article attempts to shed light on the above questions.Europeanization

Applications of Negotiation Theory to Water Issues

The purpose of the paper is to review the applications of non-cooperative bargaining theory to water related issues – which fall in the category of formal models of negotiation. The ultimate aim is that to, on the one hand, identify the conditions under which agreements are likely to emerge, and their characteristics; and, on the other hand, to support policy makers in devising the “rules of the game” that could help obtain a desired result. Despite the fact that allocation of natural resources, especially of trans-boundary nature, has all the characteristics of a negotiation problem, there are not many applications of formal negotiation theory to the issue. Therefore, this paper first discusses the non-cooperative bargaining models applied to water allocation problems found in the literature. Particular attention will be given to those directly modelling the process of negotiation, although some attempts at finding strategies to maintain the efficient allocation solution will also be illustrated. In addition, this paper will focus on Negotiation Support Systems (NSS), developed to support the process of negotiation. This field of research is still relatively new, however, and NSS have not yet found much use in real life negotiation. The paper will conclude by highlighting the key remaining gaps in the literature.Negotiation theory, Water, Agreeements, Stochasticity, Stakeholders

How do collaboration and investments in knowledge management affect process innovation in services?

Purpose Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a knowledge-intensive business service industry. Design/methodology/approach Original survey data from 166 information technology service firms and interviews with 13 executives provide the empirical evidence. Partial least squares-structural equation modelling is used to analyse the data. Findings Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation. Research limitations/implications While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows. Originality/value This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations in the service industry require engagements with different kinds of users, and the use of KM tools