Case description: Problem of buyer and seller § § These slides contain description of the case of buyer and seller The material presents § § § The problem both from the buyer’s and the seller’s point of view The issues they negotiate about What if they fail in the negotiation Systems Analysis Laboratory Helsinki University of Technology e. Learning / NA
The buyer’s problem § § § A gentleman (buyer) wants to buy twenty brand new shirts from a tailor He considers 220€ to be a reasonable price if the shirts are delivered immediately Further, he thinks that it is possible to delay the time of delivery but then he wants to have discounted price. Systems Analysis Laboratory Helsinki University of Technology e. Learning / NA
The seller’s problem § § § The tailor (seller) is selling shirts for a gentleman He needs at least 160€ to cover his production costs He prefers to delivery in seven days § § § There are other orders waiting to be filled Faster delivery is possible but for a higher price He is unable to deliver earlier than in two days Systems Analysis Laboratory Helsinki University of Technology e. Learning / NA
What do they negotiate about? § The negotiation is about two issues: price and delivery time § They try to find a price and a delivery time that they both agree! Systems Analysis Laboratory Helsinki University of Technology e. Learning / NA
What is their starting point? § § Last year, they agreed that the tailor delivered the shirts in two days at 200€ They still agree about it. Thus it is their reference agreement § They can take it as an initial tentative agreement and try to seek an improving one Systems Analysis Laboratory Helsinki University of Technology e. Learning / NA
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