Anchor-and-Resume Concession Under Dynamic Pricing for LLM-Augmented Freight Negotiation

• URL: http://arxiv.org/abs/2604.20732v1
• Date: Wed, 22 Apr 2026 16:17:07 GMT
• Title: Anchor-and-Resume Concession Under Dynamic Pricing for LLM-Augmented Freight Negotiation
• Abstract summary: Deriving $$ from the live spread enables adaptation but introduces a new problem: a pricing shift can cause the formula to retract a previous offer, violating monotonicity.<n>We propose a two-index anchor-and-resume framework that addresses both limitations.<n>A spread-derived $$ maps each load's margin structure to the correct concession posture, while the anchor-and-resume mechanism guarantees monotonically nondecreasing offers under arbitrary pricing shifts.
• Score: 5.225967186005105
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: Freight brokerages negotiate thousands of carrier rates daily under dynamic pricing conditions where models frequently revise targets mid-conversation. Classical time-dependent concession frameworks use a fixed shape parameter $β$ that cannot adapt to these updates. Deriving $β$ from the live spread enables adaptation but introduces a new problem: a pricing shift can cause the formula to retract a previous offer, violating monotonicity. LLM-powered brokers offer flexibility but require expensive reasoning models, produce non-deterministic pricing, and remain vulnerable to prompt injection. We propose a two-index anchor-and-resume framework that addresses both limitations. A spread-derived $β$ maps each load's margin structure to the correct concession posture, while the anchor-and-resume mechanism guarantees monotonically non-decreasing offers under arbitrary pricing shifts. All pricing decisions remain in a deterministic formula; the LLM, when used, serves only as a natural-language translation layer. Empirical evaluation across 115,125 negotiations shows that the adaptive $β$ tailors behavior by regime: in narrow spreads, it concedes quickly to prioritize deal closure and load coverage; in medium and wide spreads, it matches or exceeds the best fixed-$β$ baselines in broker savings. Against an unconstrained 20-billion-parameter LLM broker, it achieves similar agreement rates and savings. Against LLM-powered carriers as more realistic stochastic counterparties, it maintains comparable savings and higher agreement rates than against rule-based opponents. By decoupling the LLM from pricing logic, the framework scales horizontally to thousands of concurrent negotiations with negligible inference cost and transparent decision-making.

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