1 / 7

Lecture 4 Negotiating Strategy

Lecture 4 Negotiating Strategy. Sally Swansong Axiomatic (Nash) Bargaining. Sally Swansong. Quick Exercise: After interacting, think about BATNAs. Sally’s Agent: Write down what you think the most the Lyric would have paid?

teague
Download Presentation

Lecture 4 Negotiating Strategy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Lecture 4Negotiating Strategy • Sally Swansong • Axiomatic (Nash) Bargaining

  2. Sally Swansong • Quick Exercise: After interacting, think about BATNAs. • Sally’s Agent: Write down what you think the most the Lyric would have paid? • Lyric: Write down what you think the least Sally would have accepted? • Do you think your BATNA was stronger or weaker than the other side?

  3. Sally Swansong • The Obvious: • Your goal is not to reach an agreement, • Goal is to create value and do well for yourself. • Involves? • Improving your BATNA • Not doing deals that don’t make sense • Trying to find ways of creating joint (or solo) value.

  4. Sally Swansong • What is the ZOPA? • Zone of possible agreement: $0--$45k • Interests versus positions • Ego versus allocentric • Issue of preparation

  5. Interests? Sally: • Making a comeback • Proving she still has it • Reputation • Performing star role (and being treated as such) • Salary precedent • Firm contract Opera: • Successful Norma • Not creating salary precedent • Finding best talent • Not losing money • Publicity

  6. Nash Solution • Axioms (Assumptions that we’ll use to solve a bargaining problem.) • Respects affine transformations • IIA (Independence of Irrelevant Alternatives) • Pareto Efficiency • Symmetry

  7. Next Time • Readings for Next Time: • Raiffa, pages 251-274 & 288-299 • Bazerman, pages 127-139 • Nash: The Bargaining Problem • Optional: • Osbourne & Rubinstein, Chapter 13. An Introduction to Coalitional Bargaining

More Related