$0.00 – $6.00
Jake Erhard, under the supervision of Robert Bordone
Two-party integrative negotiation between agents for a basketball player and a shoe manufacturer over a possible sneaker endorsement deal
Theotis Wiley is a promising young basketball player with a checkered past. Erive is a small shoe manufacturing company about to launch a new line of basketball shoes. Erive’s Vice-President of Business Development has asked to meet with Theotis’ agent regarding the possibility of an endorsement deal. Neither party knows much about the other party’s interests or alternatives. NOTE: This simulation was adapted from, and is structurally similar to, the Sally Soprano simulation.
- In this case, both parties have relatively weak BATNAs (“Best Alternative to a Negotiated Agreement”). The case affords a good opportunity to discuss the relationship between BATNA and reservation value (sometimes called a “bottom line”), and the effect of one’s BATNA — and of other party’s BATNA — on the negotiation process and outcome.
- The available data allow a number of arguments about how much money a “fair” endorsement deal would involve. Participants can practice using objective criteria both as a sword and as a shield, and grapple with the challenge of judging the applicability of multiple objective criteria.
- The case allows for the creation of various options separate from the contract value issue, which can maximize joint gains for both parties. While the case can be negotiated in a very distributive manner, by focusing only on the salary issue, there is ample room for integrative bargaining.
- Each party in the case is privy to relevant information of which the other party is unaware, which allows for interesting learning points around information disclosure. On the one hand, substantive information exchange can facilitate value creation. On the other hand, by revealing too much information, on runs the risk of being exploited by the other side.
- Because the case is structured as a negotiation between representatives rather than principals, it can generate useful discussion regarding the principal-agent tension and other agency issues.
Confidential Instructions for:
- Theotis Wiley’s Agent
- Erive’s Vice-President of Business Development
- Appendix for both parties
Teacher’s Package includes:
- All of the above
- Teaching Note
Theotis Wiley Attributes
|Time required:||1-2 hours|
|Number of participants:||2|
|Neutral third party present:||None|
|Teaching notes available:||Yes|
|Non-English version available:||German|