432-class 2

432-class 2 - What makes collaborating attractive? What are...

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Competition and Collaboration
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Oil Pricing Exercise Objective: To observe, analyze and critique intra-group dynamics and decision making
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Oil Pricing Exercise SCENARIO: Alba and Batia are two relative unfriendly oil producing nations that sell a significant amount of their production to nearby Capita. Circumstances limit Alba and Batia to prices per barrel of $10, $20 or $30 . Each country's monthly profit can vary from $2 to $18 million per month, depending on how each country prices its oil per barrel. Your sole objective is to maximize
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Guidelines You will be divided into smaller groups, each group representing the country Alba or Batia Timeline: ü 5 minutes to read the instructions ü 10 minutes to develop a group strategy to achieve your objective Review the important instructions Answer any questions Begin the exercise
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What's a good outcome? Did your group “leave money on the table?” What makes competing attractive? What are the costs?
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Unformatted text preview: What makes collaborating attractive? What are the costs? How did the group come up with a strategy? What was the effect of time pressure? What happens when you have restricted communication? Who was the groups negotiator? How and why was he/she chosen? Debriefing Questions Learning Points Long-term maximization requires unenforced mutual trust where significant short-term gains are possible by breaking that trust. When communication is implicit , it is highly ambiguous and subject to misinterpretation, usually by the projection of negative and adversarial intentions that don't actually exist. Given the opportunity to communicate explicitly , you may choose to reach pricing agreements or not (and subsequently, to honor those agreements or not). Frequently we make imprecise and inadequately supported assumptions, suggesting the importance of making and keeping assumptions explicit and testing...
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432-class 2 - What makes collaborating attractive? What are...

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