$0.00 – $6.00
Two-party, single-issue distributive negotiation between a publisher and a literary agent over the advance payment for the agent's unpublished but very promising client
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.
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.
- Confidential Instructions for the Agent, Jay McIntyre
- Confidential Instructions for the Publisher, Terry Holtz
- All of the above
- 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.
- GE International
- A Salary Negotiation
- Sally Soprano
- San Morgan Contract
- Tendley Contract
Business; Contracts; Interpersonal
Anchoring; BATNA; Bluffing; Commitment; Confidentiality; Disclosure; Fairness; Information exchange; Meaning of "success"; Objective criteria; Offers, first; Options, generating; Precedents; Risk aversion; Trust
Book Contract, The Attributes
|Time required:||30 minutes - 1 hour|
|Number of participants:||2|
|Neutral third party present:||None|
|Teaching notes available:||No|
|Non-English version available:||Spanish|