POLICY-AGENTS FOR NEGOTIATION WITHIN VIRTUAL ORGANIZATIONS

Abstract

Real and virtual organizations are conducted by preferences, goals, and policies. Since virtual organizations have a two-level structure the preferences of these different levels are a source of conflicting interests. Also, management policies itself are subject to change, especially in a virtual setting. Therefore, agility has superior value, causing the need to develop business information and planning systems that may be adapted easily. Both mentioned aspects of business planning software, namely, ease adaptation on one side and the integration of individual preferences and goals on the other are treated in the paper. An architectural design is proposed that meets the needs of virtual organizations as far as any conflicts can be solved on an individual basis. This concept is further elaborated. Negotiating agents that obey the preferences of their principals are considered as a means to search for compromise solutions. An extensive example derived from hospital management illustrates the concept.