In a recent study of selfishness in negotiation, Fei Song of York University and C. Brian Cadsby and Tristan Morris of the University of Guelph had participants play the “dictator game,” adapted from experimental economics literature. In this game, Party A is given a sum of money to allocate between himself and Party B. Because Party B has no power, Party A’s allocation goes into effect without debate. The dictator game captures the essence of negotiations in contexts with an extreme power differential.
position
A proposed outcome that represents one way among many that issues might be resolved and interests met. Explicit demands made during a negotiation often represent a partyÕs position, although the underlying interest may be broader and quite different. (Michael L. Moffitt and Robert C. Bordone, eds., Handbook of Dispute Resolution [Program on Negotiation/Jossey-Bass, 2005], 280)
The following items are tagged position.
A Cash-Out Transaction: Cox Communications
On August 2, 2004, Barbara Cox Anthony and Ann Cox Chambers, two sisters who together owned 73% of Cox Communications, announced that they wanted to cash out the minority shareholders of their company. Their initial offer was $32 per share, or a 14% premium to the preannouncement trading price of approximately $28 per share.
Power Failure
In 1992 as part of efforts to privatize its energy sector, the Indian government chose energy-trading firm Enron, in conjunction with General Electric and the Bechtel Corporation, to build the world’s largest electricity-generating plant in Maharashtra, one of the poorest states in India. Possessing significant financial, intellectual, and reputational capital, Enron had to have been a formidable opponent in those initial negotiations. Enron was then on top of the business world, with sky-high stock prices and a reputation for innovation and growth.
Away from the Podium and Off to the Balcony: William Ury Discusses the Debt Ceiling Negotiations Facing Obama and US Congressional Republicans
Stewart recently interviewed negotiation expert and Program on Negotiation co-founder William Ury to discuss the aftermath of avoiding the fiscal cliff and the rounds of tough negotiations between Democrats and Republicans still to come.
Status Anxiety
Sometimes in negotiation we are forced to deal not only with the issues on the table but also with concerns about status.
One famous instance took place in the late 1980s, when Robert Campeau, head of the Campeau Corporation and then one of Fortune magazine’s “50 Most Fascinating Business People,” tried to acquire Federated Department tores, the parent company of the prestigious department store Bloomingdale’s.
A bidding war over Bloomingdale’s escalated between Campeau and R.H. Macy. Campeau won with an irrationally high offer – but had to declare bankruptcy shortly thereafter.
Negotiation Tips: Try Skills-Based Strategies First
Before launching a workaround, run through this list of skills-based strategies adopted from Getting Past No: Negotiating Your Way from Confrontation to Cooperation by William Ury (Bantam, 1993).
A Lesson from Turkey: Raise Your Profile in International Negotiations
Negotiators seek to raise their stature and increase their influence in international negotiations and other realms by serving as mediators and peacekeepers when conflicts emerge. To do so, they need to cultivate a reputation for impartiality or, at the very least, a willingness to listen to both sides.
In New York, Fast-Food Workers Test Their Negotiation Skills
On November 28, dozens of employees at several fast-food restaurants in New York City walked off their jobs and demanded better pay and unionization. In doing so, they launched what is believed to be the largest coordinated campaign in the United States to unionize fast-food workers from different restaurants, reports Steven Greenhouse in the New York Times.
Top 10 Negotiation Stories of 2012
Here’s a recap of some of the most interesting and challenging negotiations of 2012.
Negotiating the Fiscal Crisis
How can we avert a full-throttle drive over the fiscal cliff? Despite some promising signs of movement on both sides of the aisle, the current negotiation approach – positional bargaining – is bound to bring us dangerously close to the edge.
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