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

Slide 2

Look at these

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

Slide 4

A proposal is not a bargain

Slide 5

Table not ready

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

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

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”

Slide 9

Tradables

Slide 10

Styles of negotiation

Slide 11

The options

Slide 12

Pay-off diagram

Slide 13

Let`s modify the deal

Slide 14

Modified pay off

Slide 15

What happens on Friday?

Slide 16

Prisoners’ dilemma

Slide 17

Prisoners’ Dilemma

Prisoner A

Confess Don’t Confess

Confess

Don’tConfess

Prisoner B

-10, -10 0, -20

-3, -3-20, - 0

Slide 18

War or peace?

I defect, not because I want to but because I must

Slide 19

Red and blue game

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

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

Slide 22

Red or Blue?

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

Slide 24

Blue ploys

Measured risk

Linking issues

Realistic offers

Seek and reveal interests

Slide 25

Difficult negotiators

Slide 26

What strategy is used?

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?

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