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Assess whether large language model agents demonstrate human-like bargaining behaviors in supply chain contract negotiations and determine how varying information structures affect performance.

July 15, 2025Decision Sciences

Talking terms: Agent information in LLM supply chain bargaining

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Assess whether large language model agents demonstrate human-like bargaining behaviors in supply chain contract negotiations and determine how varying information structures affect performance.
Conducted experimental contract negotiation simulations comparing autonomous LLM agents against benchmark human negotiation data.
Tested performance across four distinct supplier cost information conditions: public, private, ambiguous, and deceptive.
Implemented and evaluated tailored retrieval-augmented generation (RAG) configurations designed to steer specific negotiation outcomes.
LLM agents relied on simple decision heuristics and exhibited a stronger tendency to reach agreements than humans, yielding higher supply chain efficiency but greater profit inequality.
Deceptive cost signals led agents to accept less favorable terms, redistributing surplus to the supplier while degrading retailer outcomes and overall system efficiency.
Customized retrieval-augmented generation configurations improved negotiation performance toward designated targets, such as stakeholder profitability or overall efficiency.

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Implication

Experimental study reveals higher agreement rates and efficiency alongside greater inequality in LLM supply chain bargaining, highlighting ethical trade-offs of automated negotiation.

Cite This Study

Kirshner et al. (2025) studied this question.

synapsesocial.com/papers/6a8647dab81bbc5ca8639560 https://doi.org/10.1111/deci.70010

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Implication

Experimental study reveals higher agreement rates and efficiency alongside greater inequality in LLM supply chain bargaining, highlighting ethical trade-offs of automated negotiation.

Talking terms: Agent information in LLM supply chain bargaining

Key Points

Discussion

Implication

Cite This Study

Talking terms: Agent information in LLM supply chain bargaining

Key Points

Discussion

Implication

Cite This Study

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