City Research Online

Application of strategic fuzzy games to wage increase negotiation and decision problems

Oderanti, F. O., Li, F. & De Wilde, P. (2012). Application of strategic fuzzy games to wage increase negotiation and decision problems. Expert Systems with Applications, 39(12), pp. 11103-11114. doi: 10.1016/j.eswa.2012.03.060

Abstract

We propose a flexible decision support scheme which could be used in managing the wage negotiation between employers and employees. This scheme uses fuzzy inference systems and game theory concepts in arriving at decisions on future wage increase which could be more mutually agreeable. For example, rather than specifying 5% yearly increase of wages, we propose that the uncertain factors which are mostly difficult to predict and that could affect wage decisions need to be taken into consideration by the wage formula. These include business revenues or (profit), inflation rate, number of competitors, cost of production, and other uncertain factors that may affect business operations. The accuracy of the fuzzy rule base and the game strategies will help to mitigate the adverse effects that a business may suffer from these uncertain factors. Based on our scheme, we propose that employers and employees should calculate their future wage by using a fuzzy rule base and strategies that take into consideration these uncertain variables. The proposed approach is illustrated with a case study and the procedure and methodology may be easily implemented by business organizations in their wage bargaining and decision processes. © 2012 Elsevier Ltd. All rights reserved.

Publication Type: Article
Additional Information: © 2012 Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
Subjects: H Social Sciences
Departments: Bayes Business School
[thumbnail of Application of strategic fuzzy games to wage increase negotiationand decisoin problems.pdf]
Preview
Text - Accepted Version
Available under License : See the attached licence file.

Download (469kB) | Preview
[thumbnail of Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence]
Preview
Text (Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Licence) - Other
Download (201kB) | Preview

Export

Add to AnyAdd to TwitterAdd to FacebookAdd to LinkedinAdd to PinterestAdd to Email

Downloads

Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login