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.

Development Dispute at Menehune Bay

SCENARIO:

The Queen Malia Estate has entered into an agreement with the Elima Iki Development Company (EIDC) for the leasing of 500 acres of land around Menehune Bay in Hawaii. EIDC is planning a world-class resort for the site – including eight hotels, two golf courses, recreational clubs, and private condominium units. The project has support from the business and construction community on the island but faces opposition from environmental groups and local residents. The Mayor has remained fairly noncommittal about the project, and feels that a number of questions must be answered before he can decide on the proposal. He has invited designated representatives from the six groups most interested in the project to serve on a Special Advisory Committee, indicating that if five of the six groups can reach an agreement, he will go along with their recommendations.

 

MAJOR LESSONS:

  • Successful facilitation of mediation of land use disputes involves attention to procedural concerns. The role of the neutral in establishing procedural guidelines should be clearly understood by all parties before substantive negotiation begins.
  • It is difficult to ensure that all participants in a complex negotiation have a chance to be heard, and that the ideas expressed accumulate in a constructive fashion. One of the primary tasks of the facilitator or mediator is to ensure that an acceptable record of all discussions is kept.
  • The facilitator or mediator is responsible for making sure that the group arrives at final decisions that resolve the issues at hand. It is often as difficult to get a group of disputants to agree on a process for deciding as it is to reach an agreement.
  • Inventing new options is critical to finding a workable agreement in a complex public dispute. The line between facilitation and mediation begins to blur as the neutral facilitator takes a more active role in the invention of new options.

 

ADDITIONAL NOTES:

Available on its own or as part of the Resolving Public Disputes package

 

TEACHING MATERIALS:

For all parties:

  • A Brief History on the Proposed Project
  • Map 1: Estate Lands
  • Map 2: The proposed Site

 

Role Specific:

  • Confidential Instructions for Representatives of the following groups:
  • Construction Now Hawaii
  • Development Information Association
  • Elima Iki Development Company
  • Hawaii's Friends of the Environment
  • Menehune Bay Users Association

 

Teacher's Package (31 pages total):

  • All of the above
  • Teaching notes

 

KEYWORDS:

Multi-party negotiations; mediating land use disputes; aboriginal rights; environmental dispute resolution; mediation

 

THEMES:

Agenda control; Coalitions; Consensus building; Ethics, Integrative bargaining; Objective criteria

 

MECHANICS:

This simulation requires seven players — representatives of each of the six major interests plus a facilitator. The players should be given 30-40 minutes to read the game, and 90 minutes to negotiate. The debriefing takes at least one hour.

GE International Contract

SCENARIO:

Several years ago, GE International purchased a networked computer system to serve all of its operating departments. Unfortunately, the computer system has become utterly ineffective. GE International's Senior Manager of Information Management Operations has been charged with finding an expert to divide and reprogram the computer system, rewrite the manuals, and maximize the value of the existing high-quality hardware and software.

The Senior Manager has located a computer consulting company that seems to be far better equipped than any of the alternative companies to handle this project. The consulting company, in turn, is eager for the publicity of working with a world-renowned company like GE International. At the last minute, the Senior Manager and the computer consultant realize that they have been exploring this contract without knowing that the other party had an enormously different idea regarding the appropriate price for the project. The parties are meeting one last time to see if there is a way to salvage the deal.

This case is similar to The Tendley Contract but takes place in a more corporate setting.

 

MAJOR LESSONS:

  • This case is an excellent vehicle for comparing principled negotiation to positional bargaining.
  • What are the advantages and disadvantages of revealing one's BATNA in this situation? How do the parties' BATNAs — and their disclosure or nondisclosure of them — affect the negotiation?
  • The fact that there is such a huge discrepancy in what the two parties want GE International to pay for the job makes it very difficult to come up with a contract without generating creative options. What can the parties do to facilitate option generation?
  • This case often generates discussion around "fair" pricing for the contract. What are some criteria for determining a fair price? Are the parties' initial expectations regarding the price relevant to what the price should be? Do the parties' BATNAs have any bearing on what the price should be?

 

TEACHING MATERIALS:

  • Confidential Instructions for:
    • Computer Systems Consultant
    • GEII Team
  • Teacher's Package includes:
    • All of the above
    • Teaching Note

Harborco

NEW – ALL-IN-ONE CURRICULUM PACKAGE 

If you are looking to go in-depth on the fundamental negotiation concepts and track learning outcomes, the Harborco All-In-One Curriculum Package will provide you with everything you need. The All-In-One Curriculum Package makes it easy to teach negotiation 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 Harborco. 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.

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:

Harborco is a consortium of development, industrial, and shipping concerns interested in building and operating a deepdraft port. It has already selected a site for the port, but cannot proceed without a license from the Federal Licensing Agency (FLA). The FLA is willing to grant Harborco a license, but only if it secures the support of at least 4 of 5 other parties: the environmental coalition, the federation of labor unions, a consortium of other ports in the region, the Federal Department of Coastal Resources (DCR), and the Governor of the host state. The parties have several issues to negotiate before deciding whether or not to approve the port, including the types of industries that will be be permitted to locate near the port, the extent to which environmental damage be mitigated, the extent to which organized labor will be given preference in hiring during construction and operation of the port, the amount of any federal financial assistance to Harborco, and the amount of any compensation to other ports in the region for potential economic losses?

 

MECHANICS:

This game is best played with 12 people (2 per role) although 6 people also works. A game manager is needed to conduct periodic votes and to answer questions. Game instructions require at least 30 minutes to read; more preparation is helpful. Negotiations require a minimum of 2 hours. However, the more time allowed for negotiation, the better.

 

MAJOR LESSONS:

  • When the game is played by several groups at the same time, the comparison of outcomes is instructive. Typically, some groups will reach agreement and some will not. Very few groups will reach unanimous (6-way) agreement.
  • Players are exposed to elementary utility analysis in the point scoring scheme. The importance of pre-negotiation analysis in evaluating options is illustrated. The players can then explore how and why different negotiating strategies led to different outcomes.
  • Multi-issue, multi-party negotiations tend to involve the formation of coalitions–especially blocking coalitions. This game provides an instructive context for exploring coalition strategies.
  • Parties that reveal their true interests do not necessarily do better than those who remain silent or bluff. The advantages and disadvantages of revealing all one’s concerns are illustrated in this game.
  • Pareto-superior and Pareto-inferior agreements are illustrated by the scores.
  • When 12 players play the game (2 per role) they have an opportunity to explore the special difficulties of negotiations involving non-monolithic parties.
  • The need for a neutral “process manager” of some sort is also illustrated, as the parties struggle to structure their discussions.
  • The advantages of caucusing can be explored. In some cases, players will initiate caucuses; in others, they will avoid private caucusing.

 

TEACHING MATERIALS:

For all parties:

  • General Instructions

 

Role specific:
Confidential Instructions to the Negotiator for:

  • Harborco
  • Other Ports
  • Environmental League
  • Union
  • Federal DCR
  • Governor

 

Teacher’s package (67 pages total):

  • All of the above
  • Teaching Note
  • Game Review Chart

 

Please note that this exercise is included in the Resolving Public Disputes package, also available through the Clearinghouse.

 

PROCESS THEMES:

Agenda control; Authority; BATNA; Bluffing; Caucusing; Coalitions; Commitment; Communication; Competition v. Cooperation; Constituents; Delay tactics; Information exchange; Joint gains; Media; Mediation; Meeting design; Misrepresentation; Monolithic vs. non-monolithic parties; Objective criteria; Offers, first; Pareto optimization; Political constraints, dealing with; Pressure tactics; Reservation price; Systems of negotiation; Time constraints; Utility analysis

Law Library, The

PLEASE NOTE: This role simulation was updated in 2005 with higher dollar figures, to make it seem more realistic and worthwhile. The older version with the original dollar figures is available upon request.

 

SCENARIO:

Burns & Burns, a law firm, is splitting into two new firms, the smaller of which wants to sell 300 volumes from its library that form a set on a specialized topic. So far they have not received any particularly attractive offer. The small law firm of Jones and Solomon is now interested. Purchasing these books as a used set could save Jones & Solomon money over assembling a new library. Two young lawyers are meeting to discuss whether a deal is possible.

 

MECHANICS:

The exercise can be run in a one-on-one or two-on-two configuration. Negotiation time can range from 20-45 minutes; 30 is usual. Preparation time can be as little as 30 minutes, but it is helpful to allow time for a little outside research on the law book industry. Review can range from 30-90 minutes, and is enhanced by participant demonstrations. These can be new negotiations between people who have just done the negotiation, but not with each other, negotiations between participants who have held off negotiating until this time, or continuing negotiations between participants who have been unable to settle. Both during the basic negotiations and any demonstrations, one or both negotiators can be given additional instructions on the style of negotiation to employ.

 

MAJOR LESSONS:

  • This is an excellent case for exploring the uses of objective criteria. A variety of criteria can be gathered from the case and outside research, and others, with a little thought, can be inferred.
  • This case is also a convenient vehicle for exploring different systems of negotiation and how they fare against each other.
  • The relationship of BATNA to bottom line is easily illustrated here.
  • The case suggests how seldom one encounters a true single-issue negotiation. A little reflection suggests the presence of significant opportunities to expand the pie. In particular, the possibility of establishing an ongoing relationship that might lead to client referrals merits careful consideration.

 

TEACHING MATERIALS:

For all parties:

  • List of Some Possible Objective Criteria

 

Role Specific:

  • Confidential Instructions for the:
  • Sellers — Burns & Burns
  • Buyers — Jones & Solomon

 

Teacher's Package:

  • All of the above
  • Draft Teaching Note

 

PROCESS THEMES:

Anchoring; Authority; BATNA; Constituents; Cost-benefit analysis; Information exchange; Lawyering; Legitimacy; Meaning of "success"; Objective criteria; Offers, first; Options, generating; Relationship; Reservation price; Systems of negotiation; Yesable propositions

Negotiated Development in Redstone

SCENARIO:

The grandchild of the founder of the city of Redstone has proposed building an up-scale condominium project. This has been encouraged by the Redevelopment Authority. Rumor has it that the plans include 120 units, street level commercial businesses, and a parking garage. The City Council is opposed to the project. A Neighborhood Association, including supporters of the "slow-growth" platform on which the Council was elected, is very upset and has articulated its opposition to the plan. In addition, the down-zoning laws in Redstone allow the developer of the proposed project an "as of right" density of only 50 units. However, the developer can negotiate for a higher density by offering to exceed the 10% affordable housing requirement set by the city. The City Council has urged that a representative from the Neighborhood Association and the developer meet to try to reach an accord. If no agreement is reached, the dispute will go to the City Council and the Redevelopment Authority (which are at odds).

 

MAJOR LESSONS:

  • Importance of pre-negotiation analysis: It is important to prepare for a negotiation and particularly to identify both aspirations and BATNA's.
  • Distributive vs. Integrative bargaining differences: The participants have an opportunity to analyze the differences between distributive and integrative bargaining.
  • Potential Joint Gains: Focusing on issues that are valued differently will allow participants to assess the importance of trading across issues to reach an agreement.

 

ADDITIONAL NOTES:

A variation of this exercise entitled Ocean Splash is also available from the Clearinghouse.

 

Estimated Time Requirement:

This scorable game takes about 10 minutes to read. Preparation should take approximately 15-20 minutes. The parties are given a chart to assess their scores for all possible agreements. The negotiation should take from 30-45 minutes. At least 30 minutes should be allocated for debriefing.

 

TEACHING MATERIALS:

For all parties:

  • General Information

 

Role specific:

Confidential Instructions and Scoring Charts for

  • Angela Redstone
  • John Hammond

 

Teacher's package:

  • All of the above

 

KEYWORDS/ THEMES:

Anchoring; BATNA; Bluffing; Closure; Community development; Constituents; Creativity; Currently perceived choice analysis; Interests, dovetailing; Land Use Negotiation; Linkage negotiation; Meaning of "success"; Misrepresentation; Monolithic vs. non-monolithic parties; Offers, first; Political constraints, dealing with; Precedents; Pressure tactics; Public dispute resolution; Public opinion; Reservation price; Risk aversion

 

SIMILAR SIMULATIONS:

Parking Spaces for Super Computer

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.

Parking Spaces for Super Computer

SCENARIO:

Super Computer Corp. just signed its second three-year lease for office space at 100 Blue Chip Street. This office building, managed by Prime Properties, houses the regional offices of several global corporations. Tenga Tenier (Super Computer's office manager) and Rom Rosok (Prime Properties' property manager for 100 Blue Chip Street) are about to enter their annual negotiation over parking spaces.

There is an executive parking lot underneath the office building, but this lot is not large enough to accommodate all of the building's tenants. Prime Properties offers a limited number of "executive" parking spaces in the underground lot, and a larger number of "satellite" parking spaces in a lot that is about ten minutes' walking distance from the building. Because Prime Properties charges the same lease price for executive and satellite parking spaces, tenants want to lease as few satellite and as many executive spaces as possible, while Prime Properties wants to lease as many satellite and as few executive spaces as possible.

Tenga and Ron must negotiate an agreement on two issues: how many parking spaces will Super Computer lease, and how many of those spaces will be in the executive parking lot underneath the office building? Their scores will depend on the final agreement on each of these issues.

 

TEACHING POINTS INCLUDE:

the value of exploring interests; the uses of objective criteria; the effect of aspirations on results; the power of trading across differently-valued issues; and the tension between creating and claiming value.

 

Teacher's Pack (26 pages total) includes:

  • Confidential instructions for Tenga Tenier and Rom Rosok
  • Score sheets for all participants
  • Teaching Note
  • Teaching overheads

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.

Win as Much as You Can

SCENARIO: This exercise is analytically similar to both the Oil Pricing and Pepulator Pricing exercises. Participants sole objective is to maximize their own points with complete indifference to the other participants. Participants are to play either an X or a Y and, depending on other participants' choices, a payoff is awarded each round. Only before rounds 5, 8 and 10 are players allowed to confer with each other.

MECHANICS: This exercise is played in ten quick rounds. Players are grouped into fours. Explanation of the exercise should take no more than 5 minutes. The ten rounds should take about 15 minutes, while debriefing can take from 30 to 45 minutes.

TEACHING MATERIALS:

    • For all parties:
      • General Instructions

 

  • Teacher's Package:
    • All of the above
    • Teaching Note

 

PROCESS THEMES: Assumptions; Commitment; Communication; Competition v. Cooperation; Compliance; Credibility; Decision analysis; Game theory; Group process; Joint gains; Meaning of "success"; Message analysis; 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. 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.

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 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 team has to take a risk.

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.