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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.
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The doctors' behavior does expose a fundamental weakness in the concept underlying algorithm-based negotiation software.
"Financial instruments like insurance payments are where the value proposition is high enough to make negotiation software worthwhile," Mr. Ophir said.
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.
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.
But while I.B.M. and other developers have had some success creating negotiation software for such areas, most companies are still a long way from being ready for digital dealing because the bulk of their data is on paper or in human memory, not on hard disks.
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.
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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