Harri Ehtamo

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We develop a constructive approach to multi-party negotiations over continuous issues. The method is intended to be used as a mediator's tool for step-by-step creation of joint gains in order to reach a Pareto-optimal agreement. During the mediation process, the parties are only required to answer relatively simple questions concerning their preferences;(More)
— Empirical evidence suggests that in practice it is difficult to reach Pareto optimal agreements in negotiations. In this paper, we take a constructive approach to this question in two-party negotiations over continuous issues. A new negotiation procedure is presented that results in Pareto optimal agreements under fairly general assumptions. The procedure(More)
Optimal screening has been studied in economics, game theory, and recently computer science. We study the problem in a nonlinear pricing application, where a monopoly designs a price schedule from which the buyers self-select the quality they wish to consume. We formulate a multidimensional model with buyers' utility functions that need not satisfy the(More)
We examine a contracting problem with asymmetric information in a monopoly pricing setting. Traditionally , the problem is modeled as a one-period Bayesian game, where the incomplete information about the buyers' preferences is handled with some subjective probability distribution. Here we suggest an iterative online method to solve the problem. We show(More)
We present well-known interpretations of Lagrange multipliers in physical and economic applications, and introduce a new interpretation in nonlin-ear pricing problem. The multipliers can be interpreted as a network of directed flows between the buyer types. The structure of the digraph and the fact that the multipliers usually have distinctive values can be(More)
We describe a web-site containing material and tools for learning mathematical models of negotiation analysis and discuss students' experiences of its use. The site is part of our general e-learning decision making site, www.dm.hut.fi. The negotiation analysis section provides an introduction to the theory and gives online practice in negotiation support.(More)