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Formalization for Bargaining

  Now assume that the air force database contains the price air force plans to pay for a product, i.e. the price included in the budget. Like before, the GE database contain the list price, which will probably be higher than the air force budget price. This formalization is suited for use by some bargaining agents or programs. The bargaining agent for the air force will through negotiation attempt to convince the GE agent to lower the GE list price to the air force budget price (or some price that would be acceptable to the air force).

The bargaining agents will work in some problem solving context tex2html_wrap_inline4172 . This context contains constants denoting the various data bases which will be relevant to the bargaining; in our case these will be the General Electric context tex2html_wrap_inline4240 , and the Air Force context c_AF tex2html_wrap_inline4176 . Context tex2html_wrap_inline4172 contains functions which represent the budget price and the list price of a product. Function tex2html_wrap_inline4312 , when given a context of a manufacturer and a product, returns the price at which the product is offered for sale by the manufacturer; functions tex2html_wrap_inline4314 , when given a context of a customer and a product, returns the price which the customer is willing to pay for the product. Like in the previous example, tex2html_wrap_inline4172 can represent the spares associated with an engine. Function tex2html_wrap_inline4186 , when given a product and an object, returns the spares which the given context assumes necessary and thus included in the price of the product.

The air force and GE will need to bargain in order to negotiate a price which is acceptable to both parties. However, since unlike GE, the air force assumes that the price will include a set of spare parts, the lifting axioms will be needed to adjust the prices in the two data bases to ensure that both the budget price and the list price pertain to the same package. The lifting axioms are:




The lifting axioms will enable us to derive the tex2html_wrap_inline4314 and tex2html_wrap_inline4312 prices in tex2html_wrap_inline4172 , both of which pertain to the engine only, excluding any spares. These can then be used by the bargaining programs to negotiate a price and administrate a sale.

Note again the difference between this formalization and the previous one. In the previous subsection the tex2html_wrap_inline4342 function in both data bases referred to the price which was actually being paid for a product. Therefore, the lifting axioms were used to directly infer the price in one data base based on the price listed in another. In this example, on the other hand, given the list price the lifting axioms can not be used to work out the budget price. The lifting axioms simply ensure that both the list price and the budget price talk only about the engine, and do not implicitly assume the inclusion of spare parts.

next up previous
Next: Treating as an Abbreviation Up: Integrating Databases Previous: A Simple Formalization

Sasa Buvac
Sun Jul 12 14:45:30 PDT 1998