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Slide 1
Bargaining for an agreement
The Four Phases of negotiation Phase One: how to prepare
Phase Two: how to debate
Phase Three: how to propose
Phase Four: how to bargain
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Slide 2
Look at these
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Slide 3
What is a bargain?
Take care not to misunderstand what is meant by a bargainA bargain is not a comment on the merits
of what is offered, i.e, at this price you can really make a bargain!
A bargain is a statement which contains an explicit and conditional offer
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Slide 4
A proposal is not a bargain
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Slide 5
Table not ready
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Slide 6
Linked trading
”Nothing, absolutely nothing, should be given away, no matter how little it is worth to you
The things you value modestly, could be worth a great deal in the bargaining phase if they are worth more to the other negotiators
Tradables widen the focus of negotiation; the more tradables, the easier it is to avoid deadlock
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Slide 7
Linked trading
Linking the tradables means you trade off something on one tradable and gain something on another
With only one tradable, the burden of meeting each others wants falls entirely on that tradable
Two or more tradables open up other possibilities, perhaps a win-win outcome
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Slide 8
Textbook example
Israel and Egypt fighting over the Sinai desert in the 70sIsrael: We occupy the Sinai because Egypt
keeps attacking us
Egypt: We attack Israel because they occupy the Sinai
New tradable from Kissinger – ”security”
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Slide 9
Tradables
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Slide 10
Styles of negotiation
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Slide 11
The options
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Slide 12
Pay-off diagram
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Slide 13
Let`s modify the deal
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Slide 14
Modified pay off
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Slide 15
What happens on Friday?
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Slide 16
Prisoners’ dilemma
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Slide 17
Prisoners’ Dilemma
Prisoner A
Confess Don’t Confess
Confess
Don’tConfess
Prisoner B
-10, -10 0, -20
-3, -3-20, - 0
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Slide 18
War or peace?
I defect, not because I want to but because I must
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Slide 19
Red and blue game
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Slide 20
Red and Blue styles
More for me means less for you
Aggressively competitive
Prefers to dominate
Seeks to win
All deals are one-offs
Use ploys and gambits
Bluffs and coerces
More for me means more for you
Assertively co-operative
Prefers mutual respect
Seeks to succeed
All deals lead to others
Non manipulative
Doesn't bluff or coerce
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Slide 21
Red and Blue styles
Extreme red and blue behaviour manifests itself into one of the followingRed players are takers: They seek to take
something for nothing and usually succeed against submissive extreme blue players
Blue players are givers: They seek to give something for nothing and usually lose against extreme red players
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Slide 22
Red or Blue?
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Slide 23
Red ploys
Tough-guy/soft-guy
Over-valuing feature of a deal
Setting pre conditions
High initial demands
Making threats
Setting pre-emptory deadlines
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Slide 24
Blue ploys
Measured risk
Linking issues
Realistic offers
Seek and reveal interests
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Slide 25
Difficult negotiators
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Slide 26
What strategy is used?
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Slide 27
Difficult negotiators
Is the negotiator difficult only with you or is he difficult with everyone?
Some people are deliberately difficult because they have found out that this behaviour produces what they want
Should we match or contrast?
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Slide 28
Colour purple
You will get nothing from me, unless and until I get something from you in exchangeA proposal consists of two elements, the
condition and the offer
Condition – red side – our demands
Offer – blue side – what we are prepared to give them in return
Toughness comes from resolve, not abuse