Modeling of Consensus in Bilateral Trade Negotiations

Abstract

Any trade transaction is preceded by negotiations between at least two parties, under which a sale and purchase are made. This work studies the factors that influence the time it takes for the parties to reach mutual agreement in the presence of coalitions. De Groot's model of the process of achieving consensus based on regular Markov chains is presented in the work. It is built on the assumption that participants in the negotiation process exchange opinions and can influence the point of view of other members of the negotiating parties during the discussion. The main advantage of such a model is the ability to identify and study the key characteristics of the negotiating parties. The obtained modeling results helped to formulate practical recommendations for making an agreed-upon decision within the framework of trade negotiations. Analysis of the current model of face-to-face negotiations between the two parties creates softer conditions for the composition of the group, and the negotiations themselves contribute to the development of new ways to take into account the interests of both sides.