Consumers can obtain cheaper goods through collaboration. However, it is very difficult to find a certain group of people with the same demand in traditional markets. The Internet makes this dream come true. Customers with mutual interests can get together easily and bargain with manufacturers by using the power of the group. This paper presents a novel coalition formation approach that is called Credit Based Group Negotiation. Buyers and sellers can bargain with different strategies, which rely on Negotiation Credit, and thereby close deals more efficiently but still achieve good payoffs. Furthermore, this approach extends the concept of group buying to group selling and consequently enhances the market function.
Electronic Commerce Research and Applications, 3(1), 74-94