Oil Price Game Instructions
1. The class will be divided into pairs of teams. Each pair of teams plays an independent game.
One team will represent Alba, the other Batia.
2. You will be allowed time to review the case and to caucus with your team in order
As preparation for participating in the Street Streaker negotiation, to be done in our first class,
The first two chapters (38 pages) of Thompson:
Chapter 1: Negotiation: The Mind and the Heart,
Chapter 2: Preparation: What to Do Befor
Jessie and her agent will meet prior to
negotiating with the Sharks GM to plan strategy
Jessies agent negotiates directly with the
Sharks GM and reports back to her
Jessie negotiates indirectly with the Sh
Creating Value with Contingent
BATNAS and Reservation
Jessie must get a TOTAL DEAL in
expected monetary value at or in excess of
alternative deal worth $2.1 M
Sharks must pay in expected v
You will negotiate the Jessie Jumpshot case in class.
Read Thompsons discussion of contingency contracts in Chapter 4, pp. 89-91 and Chapter 8, pp. 191194 and Bazerman and Gillespies reader article Betting on the Future: The Virtues of
15.067 Fall 2005
Forgetting to deduct the agents salary from Jessies total
Failing to calculate certainty equivalents
$12M*10%ProbabilityWin + $2M*90%ProbabilityLose
= CE[Sharks Merchandising Profit] = $3M
We now move to a series of cases in each of which there are several issues to be negotiated. These are
called mixed motive and integrative bargaining casesmixed motive because each negotiator aims to
maximize his or her share of the bargaini
You will negotiate the Salt Harbor case in class with a counterpart that will be chosen to negotiate with
you. You will be assigned a role as either the Regional Manager for Brims, a fast-growing chain of
coffee shops or as the owner of the
ADAM SMITH (The Wealth of the
An individual who intends only his own gain,
is, as it were, led by an invisible hand to promote
the public interest.
A striking example of how individual
Your next negotiation, The Stakes of Engagement, is a balanced concerns negotiation. The
immediate substantive stakes and the future relationship are in balanced tension with each
It is time to think systematically about your n
You will play the Oil Price Game in class.
(1) Chapter 11 Tacit Negotiations and Social Dilemmas (Thompson) with particular attention to:
Business as a Social Dilemma
The Prisoners Dilemma
You are about to negotiate the terms of a potential $100 million investment by a venture capital firm
Aerovent Capital in a startup company Earth Escape. How well you do depends not only on the
financial terms that you negotiate but also on
The three founders of WineMaster.com are in the thick of negotiations with a senior management team
from HomeBase.com for sale of the company. The issues on the table are:
The number of shares that the sellers owners will get from the acquir
Six Habits of Merely Effective Negotiators by J. Sebenius, Harvard Business School Publishing
The Alphexo Corporation and Betonn Corporation have an opportunity to create a profitable IT-industry
joint venture. Fo
Fair Division. How to go about it? Brams and Taylors Fair Division: From Cake Cutting to Dispute
Resolution (1996) begins with some pungent quotations:
Gimme the Plaza, the jet and the $150 million, too.
Headline, New York Post February 13,
Thompsons discussion of Team Negotiation (Chapter 9, pp. 230-234) and Intergroup Negotiation
(Chapter 9, pp. 235-240).
Flagship Airways is a multi-issue negotiation between two teams of three persons each. Negotiators for
Negotiating When Relationships Matter - Principles
External negotiations depend on the success of internal
Dont jeopardize long-term relationships by pushing too
hard for short-term gains.
Effective cross-cultural negoti
Brams and Taylor (1996)
Set forth explicit criteria that characterize different notions
of fairness in fair division.
Evaluate the property of envy-freeness to a central place in
An envy-free division is one in which every person thinks
READ and PREPARE:
Welsh Water (A): General Information and Confidential Instructions for [your role] as preparation
for this four party negotiation among:
Michael Harrington, Lead Negotiator for Welsh Water, (B) Case
Chris Smith, Lead Negot
1. Apply four concepts that we have discussed in the course to the attached Article A.
Use the complete 1/2 page per question/concept, single-spaced, in order to earn credit.