Negotiation for transportation tasks with stochastic payoffs

Abstract

In this paper, we describe a bargain model to distribute tasks with stochastic payoff among transportation companies. The tasks are generated from a procurement problem where a set of products needs to be selected for transportation from a set of prospective suppliers to a set of prospective manufacturers. The bargain process based on this model uses a time varying payoff distribution. We explain the design of the payoff model, and describe the simulation study used to determine the design criteria of the payoff model to generate a desirable task distribution.