Slide 1 Bargaining for an agreement The Four Phases of negotiation Phase One: how to prepare Phase Two: how to debate Phase Three: how to propose Phase Four: how to bargain

Slide 2 Look at these

Slide 3 What is a bargain? Take care not to misunderstand what is meant by a bargain A bargain is not a comment on the merits of what is offered, i.e, at this price you can really make a bargain! A bargain is a statement which contains an explicit and conditional offer

Slide 4 A proposal is not a bargain

Slide 5 Table not ready

Slide 6 Linked trading ”Nothing, absolutely nothing, should be given away, no matter how little it is worth to you The things you value modestly, could be worth a great deal in the bargaining phase if they are worth more to the other negotiators Tradables widen the focus of negotiation; the more tradables, the easier it is to avoid deadlock

Slide 7 Linked trading Linking the tradables means you trade off something on one tradable and gain something on another With only one tradable, the burden of meeting each others wants falls entirely on that tradable Two or more tradables open up other possibilities, perhaps a win-win outcome

Slide 8 Textbook example Israel and Egypt fighting over the Sinai desert in the 70s Israel: We occupy the Sinai because Egypt keeps attacking us Egypt: We attack Israel because they occupy the Sinai New tradable from Kissinger – ”security”

Slide 9 Tradables

Slide 10 Styles of negotiation

Slide 11 The options

Slide 12 Pay-off diagram

Slide 13 Let`s modify the deal

Slide 14 Modified pay off

Slide 15 What happens on Friday?

Slide 16 Prisoners’ dilemma

Slide 17 Prisoners’ Dilemma Prisoner A ConfessDon’t Confess Confess Don’t Confess Prisoner B -10, -100, , -3-20, - 0

Slide 18 War or peace? I defect, not because I want to but because I must

Slide 19 Red and blue game

Slide 20 Red and Blue styles More for me means less for you Aggressively competitive Prefers to dominate Seeks to win All deals are one-offs Use ploys and gambits Bluffs and coerces More for me means more for you Assertively co-operative Prefers mutual respect Seeks to succeed All deals lead to others Non manipulative Doesn't bluff or coerce

Slide 21 Red and Blue styles Extreme red and blue behaviour manifests itself into one of the following Red players are takers: They seek to take something for nothing and usually succeed against submissive extreme blue players Blue players are givers: They seek to give something for nothing and usually lose against extreme red players

Slide 22 Red or Blue?

Slide 23 Red ploys Tough-guy/soft-guy Over-valuing feature of a deal Setting pre conditions High initial demands Making threats Setting pre-emptory deadlines

Slide 24 Blue ploys Measured risk Linking issues Realistic offers Seek and reveal interests

Slide 25 Difficult negotiators

Slide 26 What strategy is used?

Slide 27 Difficult negotiators Is the negotiator difficult only with you or is he difficult with everyone? Some people are deliberately difficult because they have found out that this behaviour produces what they want Should we match or contrast?

Slide 28 Colour purple You will get nothing from me, unless and until I get something from you in exchange A proposal consists of two elements, the condition and the offer Condition – red side – our demands Offer – blue side – what we are prepared to give them in return Toughness comes from resolve, not abuse