1. Rewarding Generosity to Improve Negotiations Prepared for ODR & Consumers Colloquium 2010 – Nov 2 & 3 (also presented at Cyberweek 2010 – Oct 26) Ernest Thiessen, PhD, PEng, Smartsettle President Sponsored in part by the National Research Council of Canada

2. Ernest Thiessen, PEng, PhD Engineering Systems Analyst Engineering Systems Analyst PhD from Cornell University PhD from Cornell University Inventor of the Smartsettle eNegotiation System Inventor of the Smartsettle eNegotiation System Founder, President & CEO of iCan Systems Inc. located in Vancouver BC Founder, President & CEO of iCan Systems Inc. located in Vancouver BC Director, Summit Negotiations Society Director, Summit Negotiations Society Repeat speaker at UN sponsored forums on Online Dispute Resolution Repeat speaker at UN sponsored forums on Online Dispute Resolution Water conflict management lecturer for UNESCO-IHE Water conflict management lecturer for UNESCO-IHE

3. Our Vision Conflict being resolved in a more peaceful, collaborative & intelligent way throughout the world

4. Huge amounts of TIME and MONEY are wasted with a tedious negotiation dance, Significant VALUE is left on the table, RELATIONSHIPS are devastated by using adversarial tactics, and WEAKER parties are intimidated by an unlevel playing field. Ordinary negotiations suffer from four serious problems

5. We can solve some of these problems by rewarding generosity.

6. Buyer – Seller Dispute Boiled down to a single monetary issue Boiled down to a single monetary issue Seller wants more money from Buyer Seller wants more money from Buyer

7. Buyer Seller low high

8. 0 100 Tedious Negotiation Dance Visual Blind Bidding Initial Optimistic Proposals Buyer Seller

9. 0 13 16 20 24 26 28 100 Suggestions Optimistic Proposals Visual Blind Bidding

10. 0 13 16 20 24 26 28 100 Suggestions Optimistic Proposals Hidden Acceptances Visual Blind Bidding

11. Optimistic Proposals Suggestions Hidden Acceptances 0 13 16 20 24 26 28 100 Visual Blind Bidding

12. It’s a deal! Works with any type of negotiation, any number of parties, and any number of issues. 0 13 16 20 24 26 28 100 (there may still be hidden value)

13. 0 13 16 20 24 26 28 100 Rewards generosity

14. Seller Buyer 251520221918171614212324

15. 251520221918171614212324 Seller’s final move Buyer’s final move ? Zone of Agreement

16. 251520221918171614212324 Buyer’s final move Seller’s final move Agreement revealed by Smartsettle 24 Zone of Agreement Smartsettle considers the party that made the smallest last move as the most generous.

17. Buyer Seller 251520221918171614212324 Dampened Pendulum Arbitration Fair 21 Final Deal  Rewards generosity  Minimizes clear loser problems  Minimizes the need for arbitration

18. Party A Party B 251520221918171614212324 Dampened Pendulum Arbitration Choices given to Arbitrator

19. 251520221918171614212324 Dampened Pendulum Arbitration  Rewards generosity  Minimizes clear loser problems  Minimizes the need for arbitration 20 Final Deal Buyer Seller

20. Cyberweek 2010 Focus Group Negotiation Smartsettle CEO negotiates for ten minutes of your time filling out a questionnaire. Phase 1: Practice negotiating a similar case Phase 2: Negotiate for real Phase 3: donates negotiated amount to Right to Play Phase 3: Fill out questionnaire and Smartsettle donates negotiated amount to Right to Playwww.smartsettle.com