Bargaining for an agreement

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

2. Look at these

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

4. A proposal is not a bargain

5. Table not ready

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

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

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”

9. Tradables

10. Styles of negotiation

11. The options

12. Pay-off diagram

13. Let`s modify the deal

14. Modified pay off

15. What happens on Friday?

16. Prisoners’ dilemma

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

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

19. Red and blue game

20. 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 Red and Blue styles

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

22. Red or Blue?

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

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

25. Difficult negotiators

26. What strategy is used?

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?

28. 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 Colour purple