An Auction-based Negotiation Procedure to resolve Price related Conflicts for Online Marketplaces

Online marketplaces leverage information technology to bring together buyers and sellers, with greater effectiveness at massive scales; however, conflicts related to prices are usually the bottlenecks of trading efficiency within these online marketplaces. Embedded negotiation support function allows buyers and sellers to negotiate product prices through system interfaces; hence it should lead to higher trading success rate. However, traditional negotiation procedure demands lengthy human engagement time with complicated negotiation workflow; therefore, an auction-based negotiation procedure is presented to focus on resolving buyers and sellers conflicts, while reducing the human engagement time. The experimental results show that, auction-based negotiation procedure will not reduce the normal trading success rate. Therefore, the new design is believed to be an ideal solution for solving price related conflicts within online marketplaces. In the future, auction-based negotiation procedure should be integrated with other semantics web applications, in order to extends its capability to other areas.