67 Fish Pond Lane

SCENARIO:

67 Fish Pond Lane in Cambridge, MA was purchased five years ago for $95,000 by two lawyers. Since then, its value has at least doubled. The owners, expecting to stay for some time, kept the house in excellent condition and added several unique features, including an elegant high-tech aviary for exotic birds. The owners recently moved to California, however, and the house has been on the market for a month. Two graduating business school students are interested in purchasing the house. One or both of them plan to meet with one or both of the owners while the latter are in town for a few days to see if a sale can be arranged.

MECHANICS:

The exercise is a little more natural as a one-on-one negotiation with absent partners, but two-on-two negotiations also work and provide some interesting team dynamics. All instructions are neutral as to sex and marital status.

TEACHING MATERIALS:

For all parties:

  • Map

 

Role specific:
Confidential Instructions for:

  • Buyer(s)
  • Seller(s)

 

Teacher’s Package:

  • All of the above
  • Teaching note

 

MAJOR LESSONS:

  • This exercise usually generates difficult negotiations. In this familiar context the stakes seem large, and while there are many objective criteria on point, they are neither fully consistent nor determinative. The tendency to haggle is strong, and a variety of bargaining tactics can be used. Review can explore which tactics were effective under what circumstances, and why.
  • Many important concerns and legitimate criteria in the case are intangible and/or difficult to measure. This raises the question of how arguments can persuasively be turned into numbers.
  • The exercise is a good one for focusing closely on what specific events cause parties to change their offers, and what brings them to the point of closing the deal.
  • A discussion of deadlines, their effects and how to create them, is usually appropriate.
  • Comparison of results also raises questions about what techniques, attitudes and tactics produce more competition and/or animosity? How does amicability correlate with pareto optimality of results?
  • A variety of questions are raised concerning the concept of BATNA. How does a party’s perception of its BATNA affect conduct in the negotiation? How should it? How can BATNAs be improved? When is it ethical to try to change the other side’s BATNA for the worse? When not? What are some ways of doing that?
  • This exercise also facilitates a rich post-mortem consideration of how the parties might have prepared better.

 

PROCESS THEMES:

Anchoring; BATNA; Bluffing; Closure; Commitment; Fairness; Information exchange; Interests, dovetailing; Interests, quantifying; Joint gains; Legitimacy; Misrepresentation; Objective criteria; Offers, first; Reservation price; Systems of negotiation

Ad Sales, Inc.

SCENARIO:

Ad Sales, Inc., a firm that sells advertising space in business publications, has a new management team that will negotiate its first contract with the union representing its employees. Tension has been building, and both sides have been maneuvering for strategic advantage. Some issues to be addressed are salary, vacation time, pensions, sub-contracting, compensation, and work assignments.

 

MECHANICS:

The two teams will meet separately for an hour to discuss their strategies and objectives. Then the two teams will meet and negotiate for two hours. The threat of a strike is motivation for progress in the negotiations.

 

TEACHING MATERIALS:

For all parties:

  • General Information
  • Supplementary Information and Stated Positions

 

Role Specific:

Confidential Instructions for:

  • Lawyer on Management Team
  • Regional Sales Manager
  • Vice President for Sales
  • Vice President of AFL-CIO Local 1502
  • Representative of the International Advertising Workers Federation
  • President of Local 1502
  • Supplementary Instructions for all of the above roles

 

Teacher's Package (24 pages total):

  • All of the above

 

MAJOR LESSONS:

  • Interval team conflicts must be ironed out before union-management negotiation can proceed smoothly.
  • This case encourages parties to trade across issues and within issues. Players must decide what their BATNA's are and the differences in values of issues will determine the amount of trading.
  • This is a good exercise for people in actual contract negotiations.
  • This game allows the players to explore the influence of threats and promises on the behavior of other parties. These must be handled carefully.
  • The problems of power imbalance, typical of employee relations, are highlighted. This is probably a good case for a mutual gains approach, but useful objective criteria may be hard to come by.

 

SIMILAR SIMULATIONS:

 

PROCESS THEMES:

Agenda Control; Anchoring; BATNA; Bluffing; Caucusing; Coalitions; Communication; Consensus Building; Currently perceived choice analysis; Drafting; Emotions; Fairness; Financial analysis; Interest analysis; Interests, quantifying; Joint gains; meaning of "success"; Offers, first; Partisan perceptions; Precedents; Pressure tactics; Risk perception; Threats

Appleton vs. Baker

SCENARIO:

The Appletons and Bakers own homes on adjacent parcels of land. The Appletons are selling their house, and they also want to sell the half-lot which rests between their home and the Bakers'. The purchasers of their home are not interested in buying the lot. The Bakers are interested in the lot. There is a large bargaining zone ($5,000 to 20,000), but neither party knows of the other party's interests.

Note: After debriefing, it is an option to have a five-minute re-negotiation once everyone knows the actual constraints placed on the other party.

 

TEACHING MATERIALS:

Role specific:

  • Appleton
  • Baker

 

Teacher's package:

  • English version: Copies of both participant roles plus teaching notes
  • Non-English versions: Copies of both participant roles only

 

MAJOR LESSONS:

  • When several pairs negotiate simultaneously, the sale prices vary dramatically, which provides for a good discussion of the results of different strategies.
  • The advantages and disadvantages of making the first offer can be explored, as well as techniques for doing so.
  • Advantages and disadvantages of disclosure are also illustrated.

 

SIMILAR SIMULATIONS:

 

Bakra Beverage

NEW – ALL-IN-ONE CURRICULUM PACKAGE 

If you are new to teaching negotiation or are looking to go in-depth on the fundamental negotiation concepts, the Bakra Beverage All-In-One Curriculum Package will provide you with everything you need to teach negotiation.

The All-In-One Curriculum Package makes it easy to teach negotiation, track learning outcomes, and includes materials for the instructor as well as for students.

Materials include: 

  • Instructor’s Guide – Guide for instructors on negotiation concepts, simulation logistics, and debriefing simulation participants.
  • Instructor Background Reading List – List of background readings for instructors to complete before using the simulation to gain a better understanding of the negotiation concepts.
  • Student Background Reading List – List of background readings for students to complete before the simulation to gain understanding of the negotiation concepts.
  • Confidential Role Instructions – Confidential role-specific materials for participants in the exercise.
  • Pre-Negotiation Surveys – After completing the background reading and/or presentation of the negotiation concepts, participants complete the online Pre-Negotiation Survey to benchmark their understanding of the key learning points the game is intended to teach.
  • Agreement Outcome Form – Participants reporting the results of any agreements reached in the simulation.
  • Post-Negotiation Survey – After finishing the simulation, but before the debrief, participants fill out the Post-Negotiation Survey so Instructors can gauge participants understanding of the issues and concepts.
  • Class PowerPoint Presentation – The first part of the PowerPoint slide deck is for the instructor to use to introduce negotiation concepts, how to participate in a negotiation simulation, and Bakra Beverage. The second part is for the instructor to use in debriefing the simulation with participants.
  • Feedback Survey – At the conclusion of the exercise, participants can give feedback on the process and outcomes.

The Bakra Beverage All-In-One Curriculum Package requires a minimum of 90 minutes of class time, but is best run in a two and half or three-hour class. To order this package, you must purchase a minimum of ten copies. A separate copy must be purchased for every participant in the exercise. The materials are all single use and must be re-purchased for subsequent uses.

SCENARIO:

Structurally almost identical to the Sally Soprano role simulation, Bakra Beverage is a two-party, nonscorable negotiation between a beverage manufacturer and a soft drink distributor over the terms of a potential distribution contract.

BebsiCo is a multi-billion-dollar, multinational soft drink manufacturer interested in expanding its operations into the Middle Eastern country of Kumar. The distributor that was supposed to handle BebsiCo’s new distribution campaign, Kabir Cola, decided suddenly last week to close its Kumari operations and focus on other Middle Eastern countries. BebsiCo is eager to sign a new distribution contract with the Kumar-based Bakra Beverage, a financially troubled but reputable soft drink distributor. Indeed, BebsiCo headquarters has authorized its Director of Middle East Operations to offer Bakra up to $6.75 million per year for the contract, though BebsiCo would like that figure to be lower if possible.

Bakra desperately wants this contract, which would put it back on the map, attract additional clients, and give the company the confidence and certainty about its future that it has been waiting for to purchase Jayyid Juices (a juice and specialty beverage distributor). The contract is so important that Bakra would almost be willing to distribute for BebsiCo for free, except for the impact on future agreements and reputation.

In addition to the wide zone of possible agreement regarding the distribution fee, the simulation includes a range of possible criteria for determining the fee as well as numerous possibilities for value-creating options. Teaching points include the value of focusing on interests to create mutually beneficial options, the power of objective criteria, the effect of both parties’ BATNAs on the negotiation dynamic, and the importance of balancing both process and substance interests when a long-term relationship is at stake.

This simulation may be used as an alternative to Sally Soprano if a more corporate or international context is desired.

 

Participant materials include:

  • Confidential instructions for Bakra Beverage’s Sales Director
  • Confidential instructions for BebsiCo’s Director of Middle East Operations

 

Teacher’s package includes:

  • All of the above
  • Teaching note

 

ENHANCED VERSION AVAILABLE:

A digitally enhanced version of this simulation is available through the iDecisionGames platform and includes the following features:

  • An Instructor’s Guide summarizing the negotiation concepts covered in the simulation, a quick review of simulation logistics, and a ready-to-use set of debriefing slides;
  • Highlights from background readings that will help both students and instructors gain a better understanding of negotiation concepts and methods covered in the simulation;
  • Pre- and post-simulation questionnaires instructors can use gauge each student’s grasp of the core concepts before and after participating in the simulation;
  • PowerPoint slides that introduce key concepts before the simulation and highlight lessons for debriefing;
  • Real time, interactive, data analytics provided via the iDecisionGames platform.

To order the Bakra Enhanced Package click here.

Bamara Border Dispute

SCENARIO:

Durnia and Ebegon, two developing nations, have not yet settled their common border. This issue has become critical due to recent oil and mineral development opportunities that have arisen in areas of uncertain ownership. Unfortunately, the two departing colonialist powers left behind substantially overlapping claims, and the history of the region has been marked by tribal conflict. Relations have been deteriorating, and, with the good offices of the U.N., the two countries have sent teams to negotiate a border.

Each team is composed of representatives from its country's Ministries of Foreign Relations, War, and Finance–each of which has a different perspective of the national interest. During the middle of the negotiations, war breaks out. Each side receives a telegram blaming the war on the other side, but the military situation is so fluid that each side is also instructed to seek a cease-fire, a withdrawal of troops, and a resolution of the border, on the best possible terms. Any cease-fire must take into account the fact that where the troops end up will very likely determine the de facto border, unless other arrangements are carefully made.

 

MECHANICS:

Each team should prepare thoroughly, including meeting ahead of time to negotiate priorities and to discuss strategy. The principal negotiation between the two country delegations takes place in two hours.

 

TEACHING MATERIALS:

For all parties:

  • U.N. Report on Background of Dispute – includes maps

 

Role Specific:

  • Confidential Instructions for Durnian Diplomats
  • Confidential Instructions for Ebegonian Diplomats.
  • Initial War Telegram & War Map for Durnian Diplomats
  • Initial War Telegram & War Map for Ebegonian Diplomats
  • Subsequent War Telegram for Durnian Diplomats
  • Subsequent War Telegram for Ebegonian Diplomats

 

Teacher's Package (24 pages total):

  • All of the above
  • Teacher's Instructions

 

MAJOR LESSONS:

  • This simulation provides a good vehicle for experimenting with different negotiating strategies. There are a fair number of interests with varying intensities, some shared, some dove-tailing, and other others conflicting. Options for joint gain are plentiful. There are a number of objective criteria as well, in the form of natural features and historical boundaries with varying degrees of legitimacy. Hence, there is no obvious "most fair" solution, and skillful semi-positional bargainers can do quite well.
  • The outbreak of the war can have various effects, depending on the relationship and communication patterns established by the negotiators up to that point.
  • Information exchange is helpful in ameliorating the military crisis and developing intelligent solutions that maximize joint gains. On the other hand, much advantage can be gained by not revealing certain important pieces of information — raising questions of deception and misrepresentation.
  • The simulation provides a good study of the effects of shifting degrees of risk. The war version places the parties under pressure that may result in a power imbalance.
  • Comparisons between internal and international negotiations are illustrative.

 

SIMILAR SIMULATIONS:

 

PROCESS THEMES:

Agenda control; Anchoring; BATNA; Bluffing; Caucusing; Communication; Competition v. Cooperation; Constituents; Creativity; Ethics; Fairness; Force; Group Process; Information exchange; Interests, dovetailing; Joint gains; legitimacy; Linkage; Managing uncertainty; Meaning of "success"; Meeting design; Misrepresentation; Objective Criteria; One-text procedure; Options, generating; Partisan perceptions; Personality; Political constraints, dealing with; Power imbalance; Preparation; Precedents; Pressure tactics; Reality testing; Risk aversion; Systems of negotiations; Threats

Bentley Convertible

SCENARIO:

Mr. Henry Soles, the wealthy owner of a 1927 custom-made Bentley convertible has hired an agent to sell his car. A corporation has made an offer. The only other likely buyer is Amelia Austin. Mrs. Austin has asked her personal secretary to make an offer for the Bentley. There is no current market price for this unique automobile, although there is some data on various Rolls Royce and other Bentley models. The two representatives are meeting to negotiate the purchase.

 

MECHANICS:

After preparation for as little as 5 minutes, this one-on-one negotiation should take 20-40 minutes depending on the skillfulness of the participants. Average review time is 20-40 minutes, or 60-75 minutes if two participants are asked to negotiate the case in front of class.

 

TEACHING MATERIALS:

Role specific:

  • Soles's Representative
  • Amelia Austin's Agent

 

Teacher's package:

  • All of the above

 

MAJOR LESSONS:

  • This simple case was designed to explore positional bargaining in a classic situation where objective criteria are scarce. Techniques such as anchoring, asymptotic concessions, final offers, pleading lack of authority, low-balling, and so on, can usually be identified among participants' negotiation tactics.
  • The case also highlights the importance of the fear of being taken, and the role objective criteria can play in handling that fear.
  • The sparseness of the criteria, however, encourage their use as justifications for rigid positions rather than partial data about what might seem fair. This allows a discussion of how the difference manifests in practice and what its consequences are.
  • The relationship of BATNA to bottom line is clearly raised.
  • The differences between agent and principal interests, authority, and strategy are easily explored.

 

SIMILAR SIMULATIONS:

 

PROCESS THEMES:

Anchoring; Authority; BATNA; Interests, quantifying; Objective criteria; Offers, first; Reservation price

Book Contract, The

SCENARIO:

Terry Holtz, a senior editor with a highly regarded, independent publishing firm has received a proposed book entitled Entrepreneurial Schools written by a young, up and coming, but never before published author. Terry is extremely interested in the book and is willing to pay an exceptionally high author's advance for the book. Jay McIntyre is a successful literary agent and represents Rachel Leonard, author of Entrepreneurial Schools. Jay has shown Rachel's manuscript to one other publishing firm than Terry's and has since found out that they are not interested. This coupled with Rachel's professional ambitions, which would be helped greatly by the visibility that comes with publication, has made Rachel anxious to close the deal with Terry's firm fast. She has told Jay to settle for what he can get from Terry's firm, but not to leave any money on the table.

NOTE: This exercise is analytically similar to the exercise Parker-Gibson in a different setting.

 

MECHANICS:

The exercise works best as a one on one exercise. Preparation should take 10-15 minutes and negotiation can take 10-30 minutes. Review and debriefing can last from 30-75 minutes.

 

TEACHING MATERIALS:

Role specific:

  • Confidential Instructions for the Agent, Jay McIntyre
  • Confidential Instructions for the Publisher, Terry Holtz

 

Teacher's Package:

  • All of the above

 

MAJOR LESSONS:

  • This exercise is an excellent vehicle for comparing principled negotiation and positional bargaining. Depending on the skill of the other negotiator, both approaches can do well. Both parties should be risk averse, however, and wary of an adversarial approach that might get out of hand.
  • The knowledge that one's BATNA is weak often leads people to negotiate much less vigorously than they otherwise would. Is this ever justified? If so, under what conditions? The case affords a good opportunity to point out that any such analysis should be based on a consideration of the parties' relative BATNA's.
  • Since the case does have a strong competitive element, there is ample opportunity to explore techniques for indirectly and directly extracting information from the other side. Likewise, techniques of protecting oneself from "giving up" the possibility for gains that were unforeseen can be explored and discussed.

 

SIMILAR SIMULATIONS:

  • GE International
  • A Salary Negotiation
  • Sally Soprano
  • San Morgan Contract
  • Tendley Contract

 

SUBJECT:

Business; Contracts; Interpersonal

 

PROCESS THEMES:

Anchoring; BATNA; Bluffing; Commitment; Confidentiality; Disclosure; Fairness; Information exchange; Meaning of "success"; Objective criteria; Offers, first; Options, generating; Precedents; Risk aversion; Trust

Camp Lemonnier

Scenario:

Camp Lemonnier is a United States Naval Expeditionary Base located in the African country of Djibouti. Djibouti, bordering Somalia, Ethiopia, Eritrea, the Red Sea and the Gulf of Aden, has been home to Camp Lemonnier since the September 11, 2001 attacks prompted the United States to seek a temporary staging ground for U.S. Marines in the region. Since then, Camp Lemonnier has expanded to nearly 500 acres and a base of unparalleled importance, in part because it is one of the busiest Predator drone bases outside of the Afghan warzone. Camp Lemonnier is home to the Combined Joint Task Force―Horn of Africa of the U.S. Africa Command (AFRICOM)—and is the only permanent U.S. military base in Africa.

Tensions between the two usually friendly nations took a turn after the crash of a U.S. Predator drone in the capital city of Djibouti. The United States Defense Attaché and the Djiboutian Deputy Minister of Foreign Affairs are meeting to renegotiate the terms of the lease contract for Camp Lemonnier. The negotiation will include the following issues: contract length, total lease payments per year, potential for renegotiation, economic development aid, and support for the local population, including staffing at the base.

Major lessons of this simulation include:

  • Defining BATNA: knowing your own BATNA will help you not accept a deal that is suboptimal to your likely walk-away alternative.
  • Understanding the Zone of Possible Agreement (ZOPA): By estimating the ZOPA prior to a negotiation you can avoid taking a deal that is worse for you than your next best (realistic) alternative.
  • The impact of culture in negotiation.
  • Process management and agenda setting.
  • Uncovering interests: integrative bargaining, or “mutual gain” negotiation, focuses on the idea that through careful preparation a negotiation outcome can be favorable for both sides.
  • Principal-agent dynamics.
  • Uncovering sources of power in negotiation.

This exercise is based on the real 2014 negotiations between the United States of America and the Republic of Djibouti. The Camp Lemonnier Case Study, which details the real-life negotiation, is available for purchase separately, and can be used either with this simulation or on its own.

Materials: 

  • General Instructions for all parties
  • Confidential Instructions for Djiboutian Deputy Minister of Foreign Affairs
  • Confidential Instructions for United States Defense Attaché
  • Results Form
  • Teaching Notes

Camp Lemonnier Case Study

Scenario:

In the spring of 2014, representatives from the United States of America and the Republic of Djibouti were in the midst of renegotiations over Camp Lemonnier, the only permanent U.S. base on the continent of Africa. Djibouti, bordering Somalia, Ethiopia, Eritrea, the Red Sea and the Gulf of Aden, has been home to Camp Lemonnier since the September 11, 2001 attacks prompted the United States to seek a temporary staging ground for U.S. Marines in the region. Since then, Camp Lemonnier has expanded to nearly 500 acres and a base of unparalleled importance, in part because it is one of the busiest Predator drone bases outside of the Afghan warzone.

The U.S. is not alone in recognizing the strategic importance of Djibouti. France and Japan have well-established military presences and launch operations from the Djibouti-Ambouli International airport, as well. As of spring 2014, Russia was also reportedly vying for a similar land lease in the country.

Tensions between the United States and Djibouti have flared in recent years, due in large part to a string of collisions and close calls because of Djiboutian air-traffic controllers’ job performance at the airport. Americans have complained about the training of air-traffic controllers at the commercial airport. Additionally, labor disputes have arisen at the base where the United States is one of the largest non-government employers within the country.

Major lessons of this case study include:

  • Defining BATNA: what is each party’s BATNA?
  • Understanding the Zone of Possible Agreement (ZOPA): what is the ZOPA in this case?
  • The impact of culture in negotiation.
  • Uncovering interests.
  • Principal-agent dynamics.
  • Uncovering sources of power in negotiation.

This case can be paired with the Camp Lemonnier Simulation, available for purchase separately from the Teaching Negotiation Resource Center (TNRC). The simulation is a two-party, multi-issue, fictionalized version of these negotiations.

Materials:

  • Case Study Part A
  • Case Study Part B
  • Teaching Notes

Case of the Puerile Printer

SCENARIO:

Six months ago, Liza Brown filed a grievance with Systech's Human Resource manager. She claims that every time she had to go into the back room of the print shop either to pick up or drop off documents she felt extremely uncomfortable because of the suggestive, and even pornographic, calendars hanging in the back room. Liza says that the printer also began to make suggestive comments and even brushed up against her unnecessarily. At that point Liza complained to the print shop manager who told her to keep out of the back room if it bothered her. The results of the grievance procedure that Liza filed were a reprimand in the printer's file and orders for Liza to avoid the print shop. Liza believes that she has been denied a promotion since her grievance procedure because this situation gave her a reputation as a trouble-maker. Since Liza is unhappy with the results of the grievance procedure she asked to enter a formal mediation with an outside mediator, which is allowed in Systech's policy manual.

 

MAJOR LESSONS:

  • This scenario makes it easy to slip into a negative, reactive mode, with unsatisfactory outcomes resulting.
  • Those parties willing to consider the perceptions and interests of the other party as relevant can usually engage effectively in mutually beneficial joint problem-solving.
  • Participants can discuss how partisan perceptions affected their acceptance of differing interpretations of the case, and how they tried to educate the other members of their group as to their perceptions.
  • Fairness and power imbalance questions are triggered by the issues of sexual harassment in the exercise. These two problems can be specifically addressed, or they can be broadened to serve as a base for a discussion of difference issues in negotiating.
  • Some of the managers have to decide how much information they wish to reveal. Where do their loyalties lie?

 

MECHANICS:

At least 7 players are required. This exercise takes 45-60 minutes to run it is suggested that the participants will need 20 minutes to prepare and 30-60 for debriefing.

 

PROCESS THEMES:

Agenda control; Anchoring; Coalitions; Consensus building; Grievance procedures; Meaning of "success"; Systems of negotiation

Chiptech

SCENARIO:
Chiptech, a large company that markets a variety of electronic products for business and personal use, is in the midst of its annual budget process. Terry Austin, Chiptech's head of Human Resources, has approached CFO Chris Brown about a budget increase that is far above the limit set in a memo by Brown. Austin claims that the increase is necessary to implement the HR reorganization plan that was recently approved by the president of the company. This is their meeting.

NOTE: This simulation is based on Multimode by Lawrence Susskind.

 

MAJOR LESSONS:

  • The degree to which issues other than the percentage increase or cut should come into play is a useful focus for a discussion of good outcomes.
  • Both of the parties want the best for Chiptech, but they have different perspectives on how to do this. Austin wants to improve the HR element, and Brown wants to improve the financial element. This can lead to interesting discussion. Can each party understand where the other is coming from? Does this help them come to a solution, or just keep things civil?
  • CFO Chris Brown has the final say on Austin's budget proposal. How does this color the negotiation?

 

Teacher's Package Includes:

  • One copy of each set of confidential instructions
  • No teaching note currently available. For a similar role-play with a teaching note please see Multimode

Colortek Job

SCENARIO:

J.B. Daniels is the Vice President of Health, Safety and Environmental Affairs at Colortek, a large manufacturer of film and photographic equipment located in the Northwest. In the four years that J.B. Daniels has been with Colortek, he/she has done much to increase the environmental awareness at the company. Recently, Daniels' second-in-command got the ball rolling on a "Green Marketing" campaign but has since left Colortek. Daniels has a strong interest in filling this position as soon as possible so that his/her department does not lose control of the "Green Marketing" project. Chris Dawson, a former Assistant Press Secretary to the Governor, has interviewed with J.B. Daniels twice thus far and has easily been the strongest candidate for the job. Dawson, however, is due to start business school in eight months. Daniels and Dawson are about to meet for the third time to discuss the final details of the position and money. There is a lot of overlap in terms of salary.

 

MECHANICS:

This is a one-on-one exercise. Participants should be given 15-30 to prepare and 30 minutes to negotiate. Debriefing should take at least 30 minutes, 60-90 minutes is sufficient.

 

MAJOR LESSONS:

  • The knowledge that one's BATNA is weak often leads people to negotiate much less vigorously than they otherwise would. Is this ever justified? If so, under what conditions? The case affords a good opportunity to point out that any such analyses should be based on a consideration of the parties' relative BATNA's.
  • The available data allow a number of more or less equally persuasive arguments about what a "fair" salary would be. This is at a minimum good practice in developing and using objective criteria. Beyond that, the exercise presents the more difficult challenge of finding an objective basis with which to judge the applicability of alternative objective criteria.

 

TEACHING MATERIALS:

For all parties:

  • Creative Options Sheet

 

Role Specific:

Confidential Instructions for:

  • J.B. Daniels
  • Chris Dawson

 

Teacher's Package:

  • All of the above

 

PROCESS THEMES:

Anchoring; BATNA; Communication; Creativity; Fairness; Information exchange; Joint gains; Offers, first; Options, generating; Relationship

Contract Negotiations in the Building Trades

SCENARIO:

Three coalitions representing building contractors, building trade unions, and users of contract services are about to begin contract negotiations. Prior to the full negotiation session, each coalition will meet to discuss internal differences. Each of the three coalitions has three members representing a different internal group. They will focus on wage increases, health benefits, and double-breasting (contractors using non-union workers through subsidiary contractors). These have been outlined in the Proposed Framework for the New Building Trades Contract distributed by the staff of the Builders Association (a member of the building contractor's coalition). In addition, a number of other issues will need to be worked out. These derive mostly from prior relationships and skewed perceptions. A threat of a strike exists, which would disadvantage all three groups. Their objective is to reach an agreement that all parties can accept.

 

MAJOR LESSONS:

  • The differences in the way the players value issues open the door for trading. The parties will have to decide what they are willing to trade and what their BATNA's are. This game provides the opportunity not only for trading across issues, but also within issues.
  • The two-tier negotiation suggests a double meaning of "success." Parties must make both substantive and procedural decisions. If the coalitions do not embark upon the main negotiation with a united front; the meaning of "success" could easily become very individualistic.
  • The process of creating and claiming value in this game is quite explicit. Although there are only three main issues, the parties may add more or less importance to each by "reading in" certain assumptions about past or future relations.
  • This is a good exercise for people in actual contract negotiations, especially those facing multi-trade bargaining problems.
  • The important role that external parties can play is illustrated by the use of the media in this case. Parties must strategically manage external relationships in order to have the desired effect on the negotiation.
  • This game allows the players to explore the influence of threats and promises on the behavior of other parties. These must be handled carefully to have the intended effect.

 

MECHANICS:

This game works best with nine players (one per role). A game manager is needed to answer questions and collect written versions of each coalition's negotiation objectives following preliminary one-hour (at minimum) meetings. The ensuing negotiations should run about two hours. More time is preferable. Debriefings take approximately one and one-half hours.

 

TEACHING MATERIALS:

For all parties:

  • General Information
  • Proposed Framework for the New Building Trades Contract

 

Role-Specific:

Confidential Advice to the:

  • Builders Association
  • Technical Association
  • Basic Contractors
  • Woodworkers Union
  • Welders Union
  • Electronics Union
  • Amalgamated Refineries
  • Metropolitan Power Corporation
  • Regional Hospital Association

 

Teacher's Package:

  • All of the above
  • Teacher's notes

 

KEYWORDS/THEMES:

Agenda control; Anchoring; Apologies; Assumptions; BATNA; Bi-level negotiations; Bluffing; Caucusing; Collaborative problem-solving; Communication; Competition v. Cooperation; Consensus building; Cost-benefit analysis; Constituents; Currently perceived choice analysis; Drafting; Emotions; Ethics; Fairness; Group process; Interest analysis; Interests, quantifying; Joint game; Labor Issues; Labor Relations; Legitimacy; Meaning of "success"; Negotiating entry; Meeting design; Misrepresentation; Objective criteria; Offers, first; Packaging; Partisan perceptions; Precedents; Preparation; Pressure tactics; Public opinion; Recurring negotiations; Reservation price; Risk aversion; Risk perception; Separating the people from the problem; Threats; Time constraints; Trading, issues; Trust

 

SIMILAR SIMULATIONS:

Collective Bargaining at Central Division

Development Negotiations in the Project Review Process

SCENARIO:

A developer and city planner are about to begin negotiations concerning a proposed development in Riverdale City. The design of this residential project is based on a previous development that Jones, the developer built. Cole, the city planner, opts for changes in the design, in addition to adding affordable housing units. Another issue which the parties must address is the amount of help that Cole will give to the project. Both the planner and developer are highly concerned about the time element involved. Jones feels that the proposed plan will upgrade the neighborhood, while Cole argues that some definite changes must be made so that the development is suitable for neighborhood. Following the negotiations, Cole will submit a report containing recommendations to the Board of Zoning Appeals.

 

MECHANICS:

This exercise was created for two players. The scoring system is designed on a maximum, moderate, and minimum scale. The players need approximately 20 minutes to prepare for the negotiation which can run from 60 to 90 minutes. Post negotiation discussions take about 45 minutes. The planner can be required to submit a draft of the agreement made between the parties in the form of recommendations to the Board of Zoning Appeals.

 

MAJOR LESSONS:

  • The maximum, moderate, and minimum scale of scoring in this game enables participants to concentrate on the three main issues and create detailed discussions. Communication becomes a key element, as the parties must be clear about what they are searching for and what they will accept.
  • The parties have an opportunity to create a package that will reflect joint gains. In post negotiation discussions, participants can discuss the differences in scores by reviewing actual and possible packages, as well as negotiating styles.
  • Dealing with the dynamics of trading between issues forces students to set values on their interests and assess the importance of each issue to the other party as well.
  • The role of "face saving" and legitimacy is highlighted in the conflicting interests of both sides.
  • The possibility of achieving joint gains can stimulate tension between creating and claiming; the inferiority of compromises can also be highlighted.

 

TEACHING MATERIALS:

For all parties:

  • General Information

 

Role Specific:

Confidential Information for:

  • Jones, the Developer
  • Cole, the City Planner

 

Teacher's Package:

  • All of the above
  • Possible Scorable Outcomes

 

PROCESS THEMES:

Anchoring; Authority; BATNA; Bluffing; Closure; Commitment; Communication; Competition v. Cooperation; Compliance; Cost-benefit analysis; Decision analysis; Drafting; Interest, dovetailing; Issue control; Meaning of "success"; Message analysis; Objective criteria; Offers, first; Packaging; Precedents; Public opinion; Time constraints; Yesable propositions

Development on Bay Island

SCENARIO:

Manatee Townhomes, Inc., has proposed a residential development for a harbor island in Bay City. Before proceeding it must obtain the approval of Bay City's Department of Streets and Thoroughfares. Streets and Thoroughfares will grant approval only if Manatee agrees to pay a sum money in the form of a traffic impact exaction.

In this exercise the two groups meet to determine the amount of the exaction. Manatee wants a low exaction in order to keep its profits high; Streets and Thoroughfares wants a high exaction in order to minimize future tax levies. There is a large zone of potential agreement ($3.8 million to $10 million), but neither side knows too much about the interests of the other side. There are few, if any, opportunities for joint gains.

 

MECHANICS:

  • Divide the group into teams of one or two Manatee representatives and one or two Street and Thorough-fares representatives. Distribute the confidential instructions, and allow 20-30 minutes for reading the instructions, preparing strategies, and, if there are two-person teams, caucusing with teammates. Allow 30-45 minutes to negotiate the exaction. Debriefing should last for 30-60 minutes.
  • This case has a wide zone of potential agreement where each of the parties has reason to misunderstand the interests of the other side. In this sort of situation, the first offer is often powerful in anchoring the decision, but making a first offer that is advantageous to one's own side is difficult without securing information about the other side's true interests.
  • This case explores the advantages and disadvantages of sharing information. Since this is a one-issue case with a wide zone of agreement, gaining information about the other side is to one's advantage and revealing information about one's own side is a disadvantage.
  • This case presents the opportunity to distinguish between distributive bargaining and integrative bargaining situations, and to consider negotiation tactics that might be useful in each situations.

 

TEACHING MATERIALS:

Role Specific:

  • Confidential Instructions for:
  • Department of Street and Thoroughfares
  • Manatee Townhomes

 

Teaching Package:

  • All of the above
  • Teaching note

 

PROCESS THEMES:

Anchoring; Bluffing; Information exchange; Interest analysis; Interests, quantifying; Misrepresentation; Offers, first

Eazy’s Garage – Four-Party

Note: This simulation may be used in conjunction with the PON video Lawyers and Clients: The Initial Interview, available from the TNRC in videotape, DVD or downloadable format. The Lawyers and Clients video is based on the same fact pattern as this four-party version of Eazy's Garage.

Note: This simulation is also available in a two-party (lawyers only) version here.

SCENARIO:

Susan Garfield has a billing dispute with John Eazer, owner of a local garage, over some work done on Garfield's car. Finding the bill significantly higher than the original informal estimate, Garfield angrily confronted Eazer. Eazer prepared a second bill at an even higher figure. Frustrated, Garfield returned to the garage after closing time with a spare key and drove her car home, without paying anything. Eazer turned to his child-in-law, an attorney, wishing to file a criminal complaint. When phoned, Garfield referred the attorney to her father, a senior partner in a local law firm. Garfield's father is letting one of his young associates handle the case. The negotiation involves both lawyers, and may or may not involve clients Susan Garfield and John Eazer as well.

 

MECHANICS:

This simulation involves 1-2 hours of preparation (preferably outside class), 30-45 minutes of lawyer-client interviews, and 30-45 minutes of negotiation. The negotiations may involve lawyers only or lawyers and clients, at the instructor's (or students') discretion.

 

MAJOR LESSONS:

  • Importance of lawyer-client interviewing skills, particularly in a negotiation context
  • Roles of lawyers and clients in negotiation, and possible tensions in the lawyer-client relationship
  • Tension between empathy and assertiveness, especially in the context of a long-term relationship.
  • The relevance and uses of objective criteria.
  • Negotiating in the shadow of the law (and under the threat of a possible lawsuit).
  • Balance among short-term and long-term interests, including financial, relationship, reputation, and emotional interests.
  • Questions about what constitutes "success" in this negotiation? Is it making the other side back down? Avoiding litigation? Getting a "fair"deal? What are the criteria for a "good" outcome in negotiation?

 

TEACHING MATERIALS:

Role specific:

Confidential Instructions for:

  • John Eazer
  • John Eazer's Attorney
  • Susan Garfield
  • Susan Garfield's Attorney
  • Sample Preparation Memo

 

Teacher's Package:

  • All of the above
  • Teaching Note


PROCESS THEMES:

Anchoring; Apologies; Attorney/Client relations; Authority; BATNA; Bluffing; Communication; Education, as a means; Emotions; Ethics; Joint gains; Information exchange; Lawyering; Legitimacy; Litigation analysis; Meaning of "success"; Objective criteria; Offers, first; Partisan perceptions; Principal/agent tensions; Public opinion; Relationship; Separating the people from the problem; Systems of negotiation; Threats; Yesable propositions