$0.00 – $6.50
Two-party, single-issue distributive negotiation over a linkage payment that a developer must make to a city government; includes ethical issues
SCENARIO:
Bradford, an old New England industrial city, is experiencing an economic boom. The city has recently adopted a ‘linkage agreement’ policy, requiring developers to make once-off payments to the city to offset infrastructure and housing costs. Curry Corporation (‘Curry’) is the first developer to propose a major project under the new administration. After meeting with all the appropriate municipal agencies and citizen groups, the only major issue left unresolved in the proposed project is the appropriate size of the linkage payment that Curry should make to the city.
MAJOR LESSONS:
- Pre-negotiation analysis should include a realistic appraisal of one's BATNA. This provides a reference point against which proposed offers can be evaluated. It is important for each party to assess not only its own BATNA, but also that of the other party. This can also be done in the course of the negotiation itself by trying to elicit information from the other party about its alternatives.
- Distributive bargaining divides up a fixed pie, and is therefore inherently constant-sum. One party's gain is another party's loss.
- Each party should explore the interests of the other side before making an offer. Making an offer before exploring the other side's interests could anchor the bidding too high or too low, thereby minimizing one's own potential gains.
- When the negotiating parties are involved in an ongoing relationship, it is rarely (if ever) prudent to lie or misrepresent one's interests.
ADDITIONAL NOTES:
This game can be played with multiple and simultaneous groups of four.
TEACHING MATERIALS:
For all Parties:
- General Instructions
Role Specific:
- Confidential Instructions for Municipal Negotiation Specialists
- Confidential Instructions for Curry Representatives
Additional Teaching notes:
- Detailed notes including:
- FAQ by parties about their instructions
- Debriefing guidelines for the instructor
- Discussions about the use of one's BATNA
- Comments about the distributive bargaining process
- Comments about lying and misrepresentation
- Summary of lessons
- Exam Questions
KEYWORDS:
BATNA; Bluffing; Credibility; Ethics; Integrative bargaining; Legitimacy; Linkage; Misrepresentation; Real estate development
SIMILAR SIMULATIONS:
Negotiated Development in Redstone
Bradford Development Attributes
| Time required: | 1-2 hours |
|---|---|
| Number of participants: | 4 |
| Teams involved: | Yes |
| Agent present: | Non-lawyer |
| Neutral third party present: | None |
| Scoreable: | Yes |
| Teaching notes available: | Yes |
