GAMES PEOPLE PLAY: NEGOTIATIONS. D1D2 DISCUSSION D4 Dn D3 D5 SOLUTION. - презентация

1 GAMES PEOPLE PLAY: NEGOTIATIONS

2 D1D2 DISCUSSION D4 Dn D3 D5 SOLUTION

3 Game simulates real life Includes 5 elements: Players = decision makers Strategies available RulesOutcomesPayoffs

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5 o DISTRIBUTIVE Involve win-lose, fixed-amount situations wherein one partys gain is another partys loss o INTEGRATIVE Involve joint problem solving to achieve results benefiting both parties which can lead to win-win or lose-lose outcome

6 BATNA Reservation Price ZOPA Value Creation

7 o Best Alternative to a Negotiated Agreement (BATNA) o Typical example: negotiate or go to court o Improving your situation Improve your BATNA Identify the other sides BATNA Weaken the other partys BATNA

8 The least favorable point at which one will accept a deal The walk-away Example: you are looking for larger office space. You set your BATNA at $20/SF and your Reservation Price at 30$/SF

9 Zone of Possible Agreement (ZOPA). The difference between the Sellers Reservation Price and the Buyers Reservation Price ZOPA 250$275$ Sellers Reservation Price Buyers Reservation Price

10 What will happen if we change points of buyers and sellers reservation price? What will happen if we change points of buyers and sellers reservation price? ZOPA 250$275$ Sellers Reservation Price Buyers Reservation Price

11 Create value = enlarge the pie Basic principles: Seek out shared interests Propose mutually beneficial trades Secure insecure contracts

12 Objectives Objectives What is involved? (+extremes) What is involved? (+extremes) Goals of opposition Goals of opposition NOT the costs => what is VALUABLE NOT the costs => what is VALUABLE

13 confidence and power confidence and power keep the negotiation in your control keep the negotiation in your control aim as high as you feel necessary aim as high as you feel necessary remain flexible remain flexible know your business know your business

14 Write down the terms Write down the terms Discourage the other side from seeking further concessions Discourage the other side from seeking further concessions Be happy =) Be happy =)

15 THANKYOUFORYOURATTENTION!