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Sugar Bowl
Read the your information (10 minutes)
Make sure you understand the facts well Act according to your role
Other rules
None
Sugar Bowl
Yes
No
What are the results? How much was the sugar bowl worth?
different assessments
Selective perception Egocentrism Errors in calculation Lack of preparation or sloppy presentation Not worth the same to both buyers an sellers
you should never accept an offer in a negotiation that is worse then your
BATNA
need understand not only your own BATNA but you opponents BATNA as well
Sellers BATNA?
Sellers Reservation point? Anything more than $300 is better than your other alternative
$300 = RP
But $300 is less than your cost of $350! NEGOTIATION CASE: Sugar Bowl
Prof Stephen W. Nason All Rights Reserved 10
Bargaining Zone
The area of possible agreement between two parties in a negotiation, the
Initial offer
Negotiator 1 (Buyer)
Negotiator 2 (Seller)
Initial offer
Initial offer $ ??
Buyer
$300 Minimum
Seller
$ ?? Initial offer
Keys to success:
Know own Reservation Point
What about other sides reservation point?
How did sellers with high prices and buyers with low prices get such a good
deal?
Bad
Good
Conclusion:
1. What you do in the negotiation makes a big impact on what you end up with!
2. Know your own reservation point and you will NEVER lose! 3. Know your opponents reservation point and you will almost always win!
NEGOTIATION CASE: Sugar Bowl
Prof Stephen W. Nason All Rights Reserved 15