The studio was left with the impression that without

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seemed to give them little time to find out. The studio was left with the impression that without a deal, life as usual would continue-not the fact that, if the campaign went ahead and used the already printed photos, Moffett could win a huge settlement in court. Mof- fett's awareness of either alternative to agreement could have dramat- ically improved their position in dealing with the campaign. Finally, this anecdote leaves us with a feeling often experienced when claiming tactics are used in bargaining: ethical uncertainty. Beyond these particular observations about tactics to claim value, this chapter examines general classes of such moves. At the end of the discussion, we try to evaluate sorne of the ethical issues raised. lThis example is drawn from Bacow and Wheeler (1984:73-74).
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Claiming Válue 119 Shaping Perceptions of Alternatives . NQ-ªgreement ?1ternªtiy_es set the lower limits on acceptable agree- ~~I1Js.Key 't~~Úcs for cl~i~ing' vaiile'are'illtendecCto sh-ape'-percep- tions of these limits. Such tactics are most clearly illustrated in rather simple, "distrib- ~..:.: bargains. A b~~g~.~Il.i~~a!I~<:Lcli.~t~i.~ll~iye\\1l1el1,}l:wr~JQr,g;~ means les s for the other, whenIl()jgtIg g-,!il1~J?~yoJ:ld~iI!lPleagr~e- meniexÍst:-Thé'vafúe'that a negotiator would receive from hisno- agre~-;-~;; t allernati v es is called JJis:.J.:eseJ:vatiOn,.,yªL~i:--As- ·Cha pter Threedis~{¡ssed;-a'negotiato;-~-hould not accept any agreement worth less than this reservation value. After isolating the essence of claim- ing tactics in distributive bargains, we show how they function in bargains where joint gains are possible. SHAPING PERCEPTIONS OF ALTERNATIVES IN DISTRIBUTIVE BARGAINS A negotiator typically does not know his counterpart's reserva- tion value. 2 For example, the high-tech firm preparing an offer to buy an industrial building whose asking price is $~OO,OOO may only know that another group is interested, but not that the other group offered only $320,000. The high-tech firm is planning to convert it to office space, but unbeknownst to that firm's personnel, the other group plans to use it for nonprofit purposes. At the same time, the building's owner may know that the firm is considering another site but not how it rates the other building; in fact, it may be willing to pay up to $550,000 for his building. The bargaining range or set runs from the seller's reservation value to the buyer's3 (here, from $320,000 to $550,000, as depicted in Figure 6.1a). Of course, each negotiator is uncertain about the oth- er's end of the range. To clai Il1 value!I1.~cli,strilJutive bargain,each side. tries. to affect the other's perceptions of the bargaining range and where settlement ----- ... _._, ___ ,. ___ ~ .. ~_.~~. __ ,~~.~_~_~,'_._~-~.,,, _A~-~----" -'" -'-~.-,_ 'O"'~' ._ +_~_ 2In particular he does not know his counterpart's no-agreement alternatives. If he does know them, he is usually uncertain about how his counterpart values them relative to possible negotiated outcomes.
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  • Spring '15
  • Business Law, Bargaining, reservation value, negotiation analysis, Botts

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