Optimal Search in Negotiation Analysis: 1. SOME CANONICAL SEARCH PROBLEMS 1.1 SIMPLE SEARCH: SHERRY'S PROBLEM 1.2 SIMPLE SEARCH WITH RANDOM ARRIVALS OF OFFERS 1.3 SIMPLE SEARCH WITH SEVERAL TYPES OF ALTERNATIVES 1.4 ADAPTIVE SEARCH 2. HOW MUCH TO SEARCH BEFORE \NEGOTIATING 3. SEARCHING AMONG MULTISTAGE NEGOTIATIONS 4. DISCUSSION REFERENCES

A negotiator's reservation price or "bottom line" depends directly on the value of the no-agreement alternative to a proposed negotiated agreement. Often, one's no-agreement alternatives are uncertain and finding them requires a costly search, as in the case of a seller who must expend effort, time, and money in finding potential buyers. The value of the search should determine the seller's bottom-line or reservation price in dealings with a prospective buyer. Optimal search and stopping theory suggest useful procedures and heuristics for evaluating ones reservation price in negotiation and for searching among alternatives.