Week 3
PART A (*)
Prepare: Exercises in Negotiation Analysis (HBS 897-037).
Read the introductory material, A Primer on BATNAs, Reservation Prices, and ZOPAs, and then prepare Questions 1 and 2. (You will prepare Questions 3-5 for Week #6.) Note: “*” indicates that these should be turned in.
PART B
Read: Two Psychological Traps in Negotiation (HBS 897-036)
Read the section, “Anchoring and First Offers in Negotiation.”
PART C
Prepare: Patriot National Insurance Co. (HBS 394-095) OR Byrnes, Byrnes, & Townsend (HBS 394-096)
You will assume the role of either Patriot or BBT in negotiating the settlement of a lawsuit. The roles were handed out at the end of Class 2.
Prepare the case from the perspective of your role and carefully answer the preparatory questions at the end of your case before you negotiate. Then submit these questions before class by completing the following web survey.
Patriot: http://faculty.chicagobooth.edu/George.Wu/survey/neg3p.html
BB&T: http://faculty.chicagobooth.edu/George.Wu/survey/neg3b.htmlPairings will be distributed at the beginning of class. Complete the post-negotiation questions in your cases and turn this form in — deal or no-deal — when you are done negotiating. If you are unable to make a deal, you will receive a randomly-determined settlement (adjusted by legal costs) based on my reading of the case.