We use the experimental method to compare second-price auctions with verifiable multilateral negotiations in which the sole buyer can credibly reveal to sellers the best price offer he currently holds. Despite the two institutions seeming equivalence, we find that prices are lower in verifiable multilateral negotiations than in second-price auctions. The difference occurs because low-cost selle...

Negotiation is a process in which interested parties confer with the aim of reaching an agreement. The ability to negotiate successfully is critical for any social interaction. In particular, automated negotiators should be able to proficiently interact and collaborate with people. Negotiation surrounds our every day life even without noticing or paying careful attention to it. We often find ou...