Optimal Agendas and Procedures for N-Issue Negotiation: An Inductive Definition

This paper discusses the multi-issue negotiation between two self-interested agents. The outcome of such negotiations depends on the agendaand the negotiationprocedure. While most of the existing works are concerned with the negotiation strategy, we study the impact of varying agenda and procedure on the negotiation outcome. This is done under incomplete information settings with the equilibrium strategies defined for issue-by-issueand package dealnegotiation procedures. On the basis of these strategies, the optimal agendaprocedure combinationfor each agent is determined.