Dynamic Offer Counteroffer Negotiation System
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Solution Overview
Problem
Traditional auction formats in electronic commerce are rigid and do not allow for flexibility in terms, preventing potential bidders from deviating from predefined criteria, which can lead to missed opportunities for favorable deals due to inflexible negotiation structures.
Innovation Solution
A method and system for implementing an offer/counteroffer negotiation that allows the negotiation organizer to define initial terms and receive counteroffers from bidders, enabling individual negotiation of terms and updating of offer status over a computer network, allowing for flexible adjustments to meet the true value of the item or service.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional auction formats are used with rigid predefined terms, then the negotiation structure is simple and easy to operate, but the adaptability to individual bidder needs is poor and flexible adjustments to terms are not allowed
Solution Approach 1:
The patent implements a dynamic negotiation system where terms can be adjusted and modified during the negotiation process. The offer/counteroffer mechanism allows both parties to dynamically change terms (price, delivery date, quantity) based on mutual agreement, transforming the static rigid auction format into a flexible adaptive negotiation system.
Solution Approach 2:
The system allows changing key parameters of the negotiation such as price, delivery date, and quantity. The counteroffer mechanism enables modification of these parameters iteratively until both parties reach acceptable terms, providing the flexibility needed to adapt to individual bidder requirements while maintaining a structured negotiation framework.
2Productivity
If rigid auction terms are enforced, then the negotiation process is simple and fast, but the ability to match requirements efficiently is reduced and favorable deals are missed
Solution Approach 1:
The offer/counteroffer system incorporates feedback mechanisms where each party's response is evaluated and communicated to the other. The system tracks negotiation history, accepts or rejects counteroffers, and updates offer status, enabling efficient requirement matching while maintaining negotiation speed through structured feedback loops.
Solution Approach 2:
The system establishes preliminary terms and conditions before negotiation begins, providing a framework that guides the negotiation process. This preliminary structure enables quick decision-making while allowing necessary adjustments, ensuring both speed and reliability in requirement matching.
3Adaptability or versatility
If multiple bidders compete in traditional auctions, then the competition is intense and favorable terms are achieved, but the rigidity prevents deviation from predefined criteria and individual needs are not met
Solution Approach 1:
The negotiation process is segmented into discrete steps: offer publication, counteroffer submission, acceptance/rejection decisions, and term adjustments. This segmentation makes the complex negotiation process easier to operate by breaking it down into manageable actions, while still allowing extensive customization of terms through multiple counteroffer cycles.
Data Source
AI summary
A method for implementing an offer/counteroffer negotiation. Characteristics of an offer for an item are received, wherein the characteristics comprise at least one term defining the offer. The offer is published to a plurality of bidders. Among the potential responses to the offer, at least one counteroffer is received from a bidder. The counteroffer comprises at least one alternative term. Provided the counteroffer is acceptable, the counteroffer is accepted. Provided the counteroffer is not acceptable, a second counteroffer is transmitted to the bidder, wherein the second counteroffer comprising at least one alternative term with respect to the counteroffer. The present invention allows a negotiator to negotiate terms with one or more bidders individually, outside the constraints of a traditional auction.