$0.00 – $6.50
Jeffrey Litwak and Lawrence Susskind
Six-party negotiation among lending institution representatives, community leaders, a contractors' association, and the mayor's office to develop a public relations strategy and solutions to a foreclosure crisis caused by a widespread mortgage scam
SCENARIO:
The local newspaper, ‘the Gazette’ has recently published an article about a possible mortgage scam involving the First City Bank (‘the Bank’). The Bank has allegedly offered high interest rate loans in low-income and minority neighborhoods and has forced a high number of foreclosures in these areas. Private mortgage companies have been accused of colluding with contractors, and the city government has been blamed for its lack of regulation of the private lending industry. A meeting has been arranged between representatives of First City Bank, the mayor's office, political leaders of low-income neighborhoods, private mortgage companies, the city wide trade association of contractors and the State Banking Commission to discuss the situation.
MECHANICS:
Allow a minimum of 30-45 minutes for preparation. The negotiation itself should last at least 2 hours with an additional 60-90 minutes for discussion and debriefing afterwards.
There is another version of this game used in the angry Public course. This other version focuses on media strategy public relations in crisis situations.
Lawrence Susskind has published ‘Dealing with an Angry Public’ that addresses the major points of this game.
MAJOR LESSONS:
- The primary focus of this game is on the formulation of a media/public relations process appropriate to a multi-party public disputes resolution effort.
- The efforts of a chief elected official to act as consensus-builder can backfire. When and how elected officials should try to play facilitative roles is a sub-theme worth exploring in this case.
- Coalitions are often formed in multi-party negotiations. This game provides an instructive context for exploring coalition strategies especially blocking.
- This exercise provides the opportunity to discuss a variety of issues. Parties that reveal their true interests do not necessarily do better than those who remain silent or bluff. The advantages and disadvantages of revealing all of one's concerns are illustrated in the exercise.
- The advantages of caucusing can be explored. Some players will invite pre-negotiation caucusing while others will not participate in private caucuses.
TEACHING MATERIALS:
For all parties:
- General Instructions
- Gazette article
- Public Relations Strategy
Role Specific:
Confidential Instructions to the Representative of the
- Citywide Trade Association of Contractors
- First City Bank
- Mayor
- Neighborhoods
- Private Mortgage Companies
- State Banking Commission
Teacher's Package (28 pages total):
- All of the above
KEYWORDS/THEMES:
Agenda control; Authority; BATNA; Bluffing; Caucusing; Coalitions; Commitment; Communication; Competition v. Cooperation; Compliance; Dealing with an angry public; Delay tactics; Financial analysis; Group process; Information exchange; Joint gains; Media strategy in crisis situations; Multi-party negotiation; Objective criteria; Options, generating; Pressure tactics; Public disputes; Public opinion
SIMILAR SIMULATIONS:
Teflex Products
Dirty Stuff II
Other angry public games
First City Bank and the Press Attributes
| Time required: | 2-3 hours |
|---|---|
| Number of participants: | 6 |
| Teams involved: | No |
| Agent present: | None |
| Neutral third party present: | None |
| Scoreable: | No |
| Teaching notes available: | No |
