Chestnut Drive

SCENARIO:

Four weeks ago, Bunyon Brothers Construction Company began work on a 77-unit condominium complex at the end of a quiet, wooded, dead-end street named Chestnut Drive. The residents of Chestnut Drive were surprised and angered by this development, but, after some inquiry, concluded that there was little that could be done. Now, however, the construction process has once again brought their tempers to a boil. The neighbors' complaints include: the excessive noise from blasting, dangerously speeding trucks, the lack of a fence around the project area, foul language and habits among the construction workers, and damage to windows and at least one foundation allegedly caused by the blasting. They have elected a six-member negotiating committee consisting of a retired executive, a lawyer, a cab driver, a dentist, a small businessman, and a carpenter. The lawyer has set up a meeting of the community group with the Bunyon Brothers General Counsel. This exercise revolves around the neighbors commit- tee's preparation meeting.

NOTE: This exercise is an intra-team negotiation and is one of the two sides that makes up the exercise Chestnut Village (the other side is the exercise The Bunyon Brothers).

 

MECHANICS:

After individual preparation, groups of (roughly) six neighbors meet for about 90-105 minutes preparing to negotiate with Mr. Murphy of the Bunyon Brothers Company. A message is delivered to the lawyer 10 minutes into the session informing him that a newspaper reporter would like a statement. The group must choose whether or not to spend time on this, and if so, how much. A break after 45 minutes for a presentation on meeting design and group process is often effective. By that point, participants are familiar with the problem and interested in any insights that might be helpful in their remaining preparation time. At the end of the preparation period, groups traditionally have 20-minute negotiating sessions with Mr. Murphy or a management team from the Bunyon Brothers Company, often played by the instructor(s) demonstrating various negotiation styles. The negotiating sessions can be run serially, with one group picking up where the last left off, or consecutively, in either case with the rest of the class observing and thinking how they would proceed differently. An alternative to the instructor demonstration is to have groups of prepared neighbors negotiate with representatives of the Bunyon Brothers Company who have prepared Case No. 10004.0, The Bunyon Brothers.

 

MAJOR LESSONS:

  • This case focuses on two major themes. The first is preparation. What is your BATNA? What is theirs? What are their major interests likely to be? What are ours? What does their choice look like now? How, realistically, could we change it? What can they actually do? What can we do? How do we make it as easy as possible for them to do what we want, and hard for them to do otherwise? How do we best communicate all this? What yesable propositions do we have for them? Should we consult before deciding?
  • The second theme is meeting design and group process. How do six people work together to prepare for a negotiation? Set an agenda? Set strict time limits? Use a flipchart and a recorder? A facilitator? Separate inventing from deciding? And how do they work together in the ultimate meeting? How do they avoid divide and conquer tactics or distractions that keep them from focusing on any one point? How do they get commitment?
  • Another important theme is the problem of representing a constituency without firm authority. Can the negotiators really commit their neighbors? How should the Bunyon Brothers deal with that? Can either party really agree to what the other one wants?
  • The case also raises the question of relationship and reputation. Both sides have important long-term interests.

 

TEACHING MATERIALS:

For all parties:

  • General Instructions

 

Role Specific:

Confidential Instructions for the:

  • Cab Driver
  • Carpenter
  • Retired Executive
  • Shopkeeper
  • Dentist
  • Lawyer
  • Telephone Message to Lawyer

 

Teacher's Package:

  • All of the above
  • Draft Teaching Note

 

PROCESS THEMES:

Agenda control; Authority; BATNA; Commitment; Communication; public vs. private; Compliance; Constituents; Crisis decision- making; Currently perceived choice analysis; Delay tactics; Education, as a means; Emotions; Force; Group-think; Group process; Media; Meeting design; Preparation; Public opinion; Threats; Yesable propositions

Oil Pricing Exercise

SCENARIO:

Alba and Batia are two unfriendly oil producing nations that sell a significant amount of their production to nearby Capita. Anti-dumping agreements and Capita's alternate supply options limit Alba and Batia to prices per barrel of $10, $20, and $30. Each country's monthly profit can vary from $2 to $18 million per month, depending on the two country's relative prices and consequent Pricing Board of Alba or Batia. They are instructed that maximizing their own country's profits is their sole objective.

 

MECHANICS:

This is a group exercise, with several people on each country's Oil Pricing Board. It is possible to have as few as three or as many as ten members of each Board. The exercise is run in 8 or more rounds, corresponding to months, and takes 2 1/4 to 3 1/2 hours to run and review.

 

TEACHING MATERIALS:

For all parties:

  • General Instructions and Score Sheets
  • Monthly Price Report Message Forms

 

Teacher's Package

  • All of the above
  • Teaching Note (English version only; non-English versions do not include teaching note)

 

PROCESS THEMES:

Assumptions; Commitment; Communication; Competition v. Cooperation; Compliance; Constituents; Credibility; Decision analysis; Education, as a means; Ethics; Game theory; Group process; Group-think; Joint gains; Managing uncertainty; Meaning of "success"; Message analysis; Misrepresentation; Recurring negotiations; Risk aversion; Risk perception; Trust

 

MAJOR LESSONS:

This is a so-called "social trap" exercise, in which long-term maximization requires unenforced mutual trust where significant short-term gains are possible by breaking that trust. In most rounds, communication must be implicit, and is hence highly ambiguous and subject to misinterpretation, usually by the projection of negative and adversarial intentions that don't actually exist. At certain points, the parties are given the opportunity to communicate explicitly, and may choose to reach pricing agreements or not (and subsequently, to honor those agreements or not).

The exercise highlights the frequency with which we make imprecise and inadequately supported assumptions, suggesting the importance of making and keeping assumptions explicit and testing them periodically.

The danger of self-fulfilling assumptions is also illustrated. Parties can turn cautious competitors into the cutthroat adversaries they fear by proceeding with pre-emptive ruthlessness.

The difference between reacting to the other side's moves (or one's perception of what those moves mean or will be), and acting purposefully to influence the other side to (re)act constructively, is easily illustrated by comparing the experience of different teams. The monetary variation tends to be dramatic between cooperative and competitive games, and analysis usually suggests that to establish the former, some teams have to take a risk. Players face the tension between seeking high short-term gains and low short-term risk inherent in a competitive strategy, and lower but more stable long-term gains inherent in a cooperative strategy.

The exercise presents rich opportunities to observe, analyze, and critique intra-group dynamics and decision making.

Negotiation Pedagogy Video Series, Part III
This unscripted video, available separately, shows PON faculty member Sheila Heen running and debriefing the "Oil Pricing" exercise, interspersed with excerpts from a post-workshop interview with the instructor.
Order the video here.

Pepulator Pricing Exercise

SCENARIO:

The pepulator market is controlled by two giant companies: Pulsar Pepulator and Consolidated Pepulator. The monthly profits of both companies are determined solely by the price each charges and how it compares to the price of the competitor. Participants in this exercise act as the board of directors for each company, determining their company's price of pepulators for each of several months. They are instructed that maximizing profits is their sole objective.

 

MECHANICS:

This is a group exercise, with several people on the board of directors of each company. It is possible to have as few as three or as many as ten members of each board, though an average of six or seven members is most manageable. This is a time-slice game played in rounds, and it takes about 2-1/2 to 3-1/2 hours to run the entire exercise with review.

 

TEACHING MATERIALS:

For all parties:

  • General Instructions and Score Sheet
  • Monthly Price Report Message Form

 

Teacher's package:

  • All of the above
  • Draft Teaching Note

 

PROCESS THEMES:

Assumptions; Commitment; Communication; Competition v. Cooperation; Compliance; Constituents; Credibility; Decision analysis; Education, as a means; Ethics; Game theory; Group process; Group-think; Joint gains; Managing uncertainty; Meaning of "success"; Message analysis; Misrepresentation; Recurring negotiations; Risk aversion; Risk perception; Trust

 

MAJOR LESSONS:

This is a so-called "social trap" exercise, in which long-term maximization requires unenforced mutual trust where significant short-term gains are possible by breaking that trust. In most rounds, communication must be implicit, and is hence highly ambiguous and subject to misinterpretation, usually by the projection of negative and adversarial intentions that don't actually exist. At certain points, the parties are given the opportunity to communicate explicitly, and may choose to reach pricing agreements or not (and subsequently, to honor those agreements or not).

The exercise highlights the frequency with which we make imprecise and inadequately supported assumptions, suggesting the importance of making and keeping assumptions explicit and testing them periodically.

The danger of self-fulfilling assumptions is also illustrated. Parties can turn cautious competitors into the cutthroat adversaries they fear by proceeding with pre-emptive ruthlessness.

The difference between reacting to the other side's moves (or one's perception of what those moves mean or will be), and acting purposefully to influence the other side to (re)act constructively, is easily illustrated by comparing the experience of different teams. The monetary variation tends to be dramatic between cooperative and competitive games, and analysis usually suggests that to establish the former, some teams have to take a risk. Players face the tension between seeking high short-term gains and low short-term risk inherent in a competitive strategy, and lower but more stable long-term gains inherent in a cooperative strategy.

The exercise presents rich opportunities to observe, analyze, and critique intra-group dynamics and decision making.

Sally Soprano I

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 Sally Soprano 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 Sally Soprano. 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 Sally Soprano 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

Sally Soprano is a distinguished soprano who is now somewhat past her prime. She has not had a lead role in two years but would like to revive her career. The Lyric Opera has a production scheduled to open in three weeks, but its lead soprano has become unavailable. Lyric’s representative has requested a meeting with Sally’s agent to discuss the possibility of hiring Sally for the production. Neither knows much about the other’s interests or alternatives. There is a wide range of possible outcomes.

NOTE This exercise is a modified version of the exercise Sally Swansong I, developed by Norbert S. Jacker and Mark N. Gordon. Sally Swansong I is still available upon request. The Spanish, Swedish, and Dutch translations are based on the original Sally Swansong exercise. See also Theotis Wiley, a variation of this simulation set in the context of a potential endorsement contract between a basketball player and an athletic shoe company.

TEACHING MATERIALS 

Materials for the standard version include:

  • Confidential Instructions for:
    • Sally Soprano’s Agent
    • Lyric Opera’s Business Manager
  • Post-negotiation handouts:
    • Some possible criteria for establishing salary
    • Some creative options
  • Teacher’s Package includes:
    • All of the above
    • Teaching Note

PROCESS THEMES Anchoring; Attorney/Client relations; Authority; BATNA; Bluffing; Confidentiality; Constituents; Fairness; Information exchange; Interests, dovetailing; Lawyering; Legitimacy; Meaning of “success”; Misrepresentation; Objective criteria; Offers, first; Options, generating; Pareto optimization; Precedents; Risk aversion; Risk perception; Systems of negotiation; Trust

MAJOR LESSONS

This exercise is an excellent vehicle for comparing principled negotiation and positional bargaining.

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 BATNAs.

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 case presents the more difficult challenge of finding an objective basis with which to judge the applicability of alternative objective criteria.

Good negotiators put the distributive issues in this case in perspective and reduce their importance by dovetailing interests with creative options that expand the pie. This case has an enormous potential range of such creative options.

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

 

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 Sally Soprano Enhanced Package click here.