Business E-NeGotiAtion: A Method Using a Genetic Algorithm for Online Dispute Resolution in B2B Relationships

Abstract

An opportunity to resolve disputes as an out-of-court settlement through computer-mediated communication is usually easier, faster, and cheaper than filing an action in court. Artificial intelligence and law (AI & Law) research has gained importance in this area. The article presents a design of the E-NeGotiAtion method for assisted negotiation in business to business (B2B) relationships, which uses a genetic algorithm for selecting the most appropriate solution(s). The aim of the article is to present how the method is designed and contribute to knowledge on online dispute resolution (ODR) with a focus on B2B relationships. The evaluation of the method consisted of an embedded single-case study, where participants from two countries simulated the realities of negotiation between companies. For comparison, traditional negotiation via e-mail was also conducted. The evaluation confirms that the proposed E-NeGotiAtion method quickly achieves solution(s), approaching the optimal solution on which both sides can decide, and also very importantly, confirms that the method facilitates negotiation with the partner and creates a trusted result. The evaluation demonstrates that the proposed method is economically efficient for parties of the dispute compared to negotiation via e-mail. For a more complicated task with five or more products, the E-NeGotiAtion method is significantly more suitable than negotiation via e-mail for achieving a resolution that favors one side or the other as little as possible. In conclusion, it can be said that the proposed method fulfills the definition of the dual-task of ODR—it resolves disputes and builds confidence.