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