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Debriefing for Moms.Com 2 Party, Multi-issue Negotiation

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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 ... – PowerPoint PPT presentation

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Title: Debriefing for Moms.Com 2 Party, Multi-issue Negotiation


1
Debriefing for Moms.Com 2 Party, Multi-issue
Negotiation
2
  • 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

3
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

4
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

5
Quality of Outcomes
6
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

7
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 lt4 but shares the excess of the profit
    if rating is gt5
  • Seller and Buyer believe there is a 20 they will
    have to pay and a 70 chance to collect
  • What is the buyers vs. sellers advantage of
    having these?

8
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
    doesnt really create value but distributes it
    according to expectations

9
Contingency Contracts
  • In Betting Chart vs. Graph
  • FG DE represent same agreement but DE uses the
    buyers expectations of 8.4 million and FG uses
    sellers expectation of 9.6

10
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

11
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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