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Negotiation is a crucial stage of Web Services interaction lifecycle, aiming at establishing a formal contract between a service provider and a consumer, to specify agreed terms on the service, particularly terms on non-functional aspects. This paper introduces a formal negotiation model for Web Services. The model employs fuzzy truth propositions to specify constraints attached to the service, and uses a utility function to represent the negotiator's preferences over service attributes. Strategies for evaluating proposals and generating counter-proposals are also presented. In particular, the strategies for counter-proposal generation can make adjustable rates of concession, by reacting to an over-changing environment.
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