Online Negotiation System Using Price Proximity Feedback
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional online negotiation systems for real and personal property sales lack efficient mechanisms to guide parties in determining the proximity of their offers and listing prices, often leading to prolonged negotiations and potential miscommunication, especially in the absence of real-time feedback and structured negotiation processes.
Innovation Solution
A computer system programmed to receive property listings and offers, calculating the difference between the two prices and categorizing them as 'cold,' 'warm,' or 'hot' to prompt parties to adjust their bids and offers, with the option to automatically split the difference when prices are within a certain proximity, facilitating negotiations and potentially generating an electronic agreement of sale.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If conventional online negotiation systems are used without structured feedback mechanisms, then parties can negotiate freely, but negotiation time is prolonged and miscommunication occurs
Solution Approach 1:
The system implements automated feedback mechanisms that provide real-time temperature assessments (hot/warm/cold) to both buyer and seller based on their offers. This structured feedback guides parties toward agreement by indicating how close they are to each other's positions, significantly reducing negotiation time and improving efficiency compared to unguided conventional negotiations
Solution Approach 2:
The system changes the parameter of negotiation guidance by introducing temperature categorization (hot/warm/cold) based on the difference between offers. This parameter transformation converts raw price differences into intuitive guidance signals, helping parties understand negotiation proximity and adjust their strategies accordingly, thereby reducing prolonged negotiations
2Productivity
If real-time feedback and structured negotiation processes are implemented, then negotiation efficiency improves, but system complexity increases
Solution Approach 1:
The system applies parameter changes by converting complex price difference calculations into simple temperature categories (hot/warm/cold). This transformation maintains high negotiation efficiency while keeping the system relatively simple, as the complex analysis is automated and presented through intuitive categories rather than raw data
Solution Approach 2:
The system performs automated calculations and assessments without requiring manual intervention from intermediaries. The automated feedback generation and temperature assessment reduce the need for human agents to manually analyze offers, thereby improving efficiency while the system complexity is contained within the automated algorithms
3Ease of operation
If intermediaries are eliminated in favor of direct online negotiation, then transaction costs are reduced, but communication clarity and guidance are worsened
Solution Approach 1:
The system compensates for the elimination of intermediaries by implementing automated feedback mechanisms that provide negotiation guidance. The temperature assessments and proximity indicators replace the informational role previously filled by human agents, ensuring communication clarity is maintained while eliminating intermediary costs
Solution Approach 2:
The system acts as an electronic intermediary that automates the guidance function. Rather than eliminating structure, it provides algorithmic mediation through automated feedback, maintaining negotiation clarity while removing human intermediaries and their associated costs
Data Source
AI summary
A computer system and method carried out by the system for assisting parties in negotiation the sale price of real estate or personal property is disclosed wherein a web server receives a property listing from a seller at an asking price, receives a bid from a buyer at an offer price, compares the asking price to the offer price and determines whether the difference between the offer price and asking price is within a first, second, or third predetermined % value and notifies the parties whether they are cold, warm, hot, or matched. If there is a match, an agreement of sale may be generated.