Week 6
PART A (*)
Prepare: Exercises in Negotiation Analysis (HBS 897-037).
Read the introductory material, A Primer on Pareto Efficiency, and prepare Questions 3-5.
PART B
Read: Sources of Joint Gains in Negotiation (HBS 396-241).
What principle underlies the creation of joint gains? To what kinds of situations can this principle be applied?
PART C
Read: Cementownia Odra (A) (HBS 895-004) and either
Tomasz Budziak (HBS 895-006) OR Hans-Hugo Miebach (HBS 895-007)In 1993, Cementownia Odra was the first firm privatized in the Polish cement and lime sector. You — in the role of either Hans-Hugo Miebach, a German investor, or Tomasz Budziak, a representative of the Polish Ministry of Privatization — will negotiate the terms for the sale of Odra. You should read the common information in the (A) case and your own confidential information. You will receive your pairings at the beginning of today’s class.
You should familiarize yourself with the scoring system illustrated in Exhibit A of your cases. Be sure that you understand how these surpluses were calculated, and be prepared to perform a similar calculation for any deal that you regard as possible.
Please complete the web survey before class: http://faculty.chicagobooth.edu/George.Wu/survey/neg6.html