R4. Tradeoffs and concessions.pdf

The city negotiators were concerned about money real

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The City negotiators were concerned about money, real and per- ceived security of its citizens, security of the police, symbolic con- sequenees with possible ramifications for other wage negotiations, polítical image, and so on. Suppose that they started out monetizing various issues, sueh as starting salaries, maximum salaries, vaca- tions, creation of the rank of corporal, number of sergeants; but that they found it hard to put a price tag on the reinstatement of sus- pended officers (there was a principIe at stake), on two-man patrols (lives were at stake), on the Políce Review Board (justice and alien- ation were at stake), on the police commissioner (the mayor's job may have been at stake). How eould they put a dollar figure on what happened to the Police Review Board? One way to do this would be to imagine a situation in which everything was settled except the issues of the Police Review Board and the stalting salary level. The negotiators could then decide how they would be willing to trade one against the other-in effeet, aeting as if they were plae- ing a monetary value on various Police Review Board options. It' s the structure of the problem situation that essentially forces this evaluation. When we turn our aUention to other applieations (such as interna- tional treaty negotiations), reducing everything to money may not be convenient or appealing. Some abstract scoring system may be
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150/ TWO PARTIES, MANY ISSUES easier to work with. In the case of AMPO versus City we could have evaluated City's reactions for nonmonetary issues in terms ol' equivalent salary concessions, and thereby monetized these non- monetary concems. This might, in fact, have been the more "natu- ral" approach. But the introduction of abstract scores for City served a useful purpose: they will be easier and more comfortable to handle when we de al with subsequent examples like the Panama Canal Treaty and the Camp David negotiations. In the laboratory experiment, we assumed that City and AMPO assigned a specific point score to each outcome level on each issue and then added these to get an entire contract evaluation.We'll call this an additíve scoring system-although there was one small de- viation from this system. Remember that if City held AMPO to zero additional vacation days for all officers, City achieved a boIius of 10 points. In this case we simply could not add up City' s score for these two issues. The bonus introduced what is known as an inter- action effect between the vacation issues. If we combined thetwo separate vacation issues into a single composite issue, then we would have strict additivity among the nine resulting issues. Considering just two issues-starting salary and number of ser- geants-suppose that the other seven issues (treating vacations as a composite issue) are already fixed. We're now investigating trade- offs between starting salary and sergeants only. In the scoring sys- tem we are using, notice that any tradeoff comparisons between levels on these two issues do not depend on the levels of the re- maining
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