Debriefing New recruit Integrative Negotiation Role Play by 4Z22eGa6

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									   Debriefing for Moms.Com
2 Party, Multi-issue Negotiation
• What types of issues are included? Which
  issue is related to which types?
  – Integrative, Distributive, Compatible
  – Integrative
    • Look at Preferences Chart…
       – Runs is more important to buyer, Financing is more
         important to seller
    • Look at Runs and Financing Trade-off graph
       – Outcome A vs. B. vs. C
    For those who recognized Tradeoffs

• How did you recognize Tradeoffs?
  – Sharing information about preferences and
    priorities
  – Making Proposals


• But you can do more than recognize
  Tradeoffs…
  – You can add issues…
                   Adding Issues

• What issues did you add?
  • Juniors
• How did you do that?
  • Fully exploring issues
• Benefits of Adding issues in this case
  – Increasing profit
  – Increasing the possibility of closing the deal
• In future…
     • Add new issues, decide which issue to add,
       decide when to propose it…
                   Quality of Outcomes
Degree of                          Outcome
Integrativeness
1                 •Recognizing Issues that can be traded off
                     •E.g., <8 runs, and/or any financing in
                     Years 1+
2                 •Recognize tradeoffs but did not include
                  Juniors
                     •E.g., 8 runs, cash up-front,
3                 Recognize tradeoffs AND included Juniors
                     E.g., 8 runs, cash up-front, Juniors

4
                  Included a contingency contract
               Contingency Contracts
• Did you come to agreements which were
  contingent on show ratings
   • Looking at Betting on Different expectations
     Chart we see that buyer believes that show
     will have a 3-4 rating but seller believes that
     there is a 5-6 rating (ownership effect)
     – Did some of you not reach agreement on contingency
       contract?
        » Seller thinks that the show will get a rating 5-6 then s/he
           wants to agree but if buyer thinks that the show will not,
           then s/he may not agree and there is no agreement
            Contingency Contracts

• More on Betting Chart:
  • it protects the buyer on the downside and
    shares FG
  • the contingency contract protects the buyer if
    the rating <4 but shares the excess of the
    profit if rating is >5
    • Seller and Buyer believe there is a 20% they will
      have to pay and a 70% chance to collect
    • What is the buyer’s vs. seller’s advantage of
      having these?
       Purpose of Contingency Charts

• Technical method of increasing perceived
  tradeoffs
• It distributes value that the buyer does
  not expect but that the seller does
  • If seller is correct, the buyer will have
    ‘unexpected’ profits that the seller wants to
    share in
  • The surplus makes the deal more flexible but
    it doesn’t really ‘create’ value but ‘distributes
    it according to expectations
           Contingency Contracts

• In Betting Chart vs. Graph
  • FG & DE represent same agreement but DE
    uses the buyer’s expectations of 8.4 million
    and FG uses seller’s expectation of 9.6
                 Create value

• See if there are any issues that
  • you can trade off,
  • increase value of agreement,
  • Beneficial to include
• Search for differences in parties’
  perceptions to capture in a contingency
  contract
  – Time preferences, risk preferences,
    expectations
       Behaviors that Create Value
•   Build Trust
•   Ask Questions
•   Give Away some information
•   Make Multiple Offers Simultaneously
•   Search for post-settlement Settlements

								
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