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Bargaining for an agreement n The Four Phases of negotiation l Phase One: how 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 Look at these 2

What is a bargain? n Take care not to misunderstand what is meant by 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 A proposal is not a bargain 4

Table not ready 5 Table not ready 5

Linked trading n ”Nothing, absolutely nothing, should be given away, no matter how little 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 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 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 Tradables 9

Styles of negotiation 10 Styles of negotiation 10

The options 11 The options 11

Pay-off diagram 12 Pay-off diagram 12

Let`s modify the deal 13 Let`s modify the deal 13

Modified pay off 14 Modified pay off 14

What happens on Friday? 15 What happens on Friday? 15

Prisoners’ dilemma 16 Prisoners’ dilemma 16

Prisoners’ Dilemma Prisoner B Confess -10, -10 Don’t Confess 0, -20 Prisoner A Don’t 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 War or peace? I defect, not because I want to but because I must 18

Red and blue game 19 Red and blue game 19

Red and Blue styles n More for me means less for you n More 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 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 or Blue? 22

Red ploys n Tough-guy/soft-guy n Over-valuing feature of a deal n Setting pre conditions 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 Blue ploys n Measured risk n Linking issues n Realistic offers n Seek and reveal interests 24

Difficult negotiators 25 Difficult negotiators 25

What strategy is used? 26 What strategy is used? 26

Difficult negotiators n Is the negotiator difficult only with you or is he difficult 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 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