Problem Restructuring in Negotiation

Published Online:https://doi.org/10.1287/mnsc.37.10.1248

To achieve movement towards a negotiated settlement, it is often necessary to restructure the problem under negotiation. Problem restructuring can lead to changed perception of the issues by the parties, thus breaking deadlocks and increasing the parties' willingness to compromise. We present a framework and mechanisms for problem restructuring based on the goals and goal relationships of the negotiating parties as well as means of manipulating the parties' utility estimates. In addition, previous negotiations are a source of heuristic advice in the restructuring task. The restructuring approach has been implemented in the PERSUADER, a computer program that acts as a labor mediator in labor management disputes. To achieve its task, the PERSUADER negotiates separately with each party, company and union, to guide them in reaching agreement.

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