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The doctors' behavior does expose a fundamental weakness in the concept underlying algorithm-based negotiation software.
Negotiation software may one day be used to help settle credit card bills, car loans and other financial exchanges, for example.
In the early stages of negotiation software, on your smartphone, there may be programs that listen to the pitch of a voice, or that test for stress.
"Financial instruments like insurance payments are where the value proposition is high enough to make negotiation software worthwhile," Mr. Ophir said.
Aside from the money and time needed to digitize such information, managers tend to be wary about ceding job functions or decision-making authority to a machine, a hurdle that must be overcome before negotiation software can achieve broader acceptance.
The trick to making automated negotiation software work is finding a niche where the humans involved will not feel either that the computer is fleecing them or giving too much away to the other side.
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GoCargo.com, which Mr. Goldwerger said operated tens of thousands of auctions each day, uses technology from Moai, one of the few major auction and online negotiations software companies that has not been acquired by an e-marketplace maker.
Finally, Google was said to be imposing contractual negotiations on software developers that make it harder to transfer advertising campaigns to other platforms.
These protocols are mainly designed for automated negotiations between software agents.
An electronic negotiation system incorporating software agents was used in the experiment.
According to "two people involved in the negotiations", the Redmond software giant even bid as high as $700 million for the company.
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