Multiparty Negotiation paper 3 page - single space. Delivery before 11AM 3 Dec (Time zone in Atlantic, NS (GMT-4))

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MBA

Multiparty Negotiation

Multiparty Negotiation

  • Many negotiation situations involve more than two parties
  • A group of students doing a group project
  • A group of experts designing a house
  • International forums
  • United Nations
  • Climate change

Concepts

  • Building Blocks

Primary Parties (individuals, groups, nations)

Coalitions (Cooperative and non-cooperative)

Third Party (Agent, consultant, mediator)

Entities supporting the Primary Party

  • Boundaries
  • Least complex (e.g., 3-party)
  • Most complex (e.g., GATT Uruguay Round)

Multiparty Negotiation

  • Multiparty
  • Coalitions
  • Principal-Agent
  • Teams
  • Constituencies

Three Key Challenges

  • Dealing with Coalitions
  • Potential for coalitions
  • Formulating Tradeoff
  • Circular
  • Reciprocal
  • Voting and Majority Rule
  • Arrow’s “Impossibility theorem”

Strategies for Multiparty Negotiation

  • Manage Information
  • Information overload
  • Use Brainstorming
  • After solitary writing
  • Assign Process Rules
  • Avoid Equal Share Bias
  • Stay at the Table

Coalitions

A coalition is a subgroup of two or more individuals who join together in using their resources to affect the outcome of a decision in a mixed-motive situation involving at least three parties.

Challenges Posed by Coalitions

  • Optimal Size
  • Coalition Maintenance
  • A function of cost and reward
  • Distribution Problem
  • Complex
  • A normative method of fair distribution does not exist.

Strategies for Maximizing Coalition Effectiveness

  • Make your contact early.
  • Make agreement
  • Seek verbal commitment
  • Trust and follow-through
  • Allocate resources among coalition members fairly
  • If unfair  unstable coalition

Principal-Agent Relationship

One individual (the principal) delegates authority to another (the agent) to act on his/her behalf and whose decisions impact the principal’s welfare.

If differing interests and can’t determine agent’s action = moral hazard

 opportunistic behavior

Principal-Agent in Negotiation

  • Advantages
  • Provide substantive knowledge, expertise
  • Emotional detachment
  • Disadvantages
  • Shrinking bargaining zone
  • Communication distortion
  • Loss of control
  • Getting to “yes’ bias

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Constituent

  • Challenges for constituent relationship
  • Accountability
  • Conflicts of interest
  • Strategies for Improving Constituent Relationship
  • Understand your constituents
  • Don’t expect homogeneity of views
  • Educate your constituent on your role and limitations

Team Negotiation

A small group of people, with complementary skills, who work toward common goals for which they hold joint responsibility and accountability.

Challenges that Face Negotiating Teams

  • Picking your teammates
  • How many on the team?
  • Communication within the team
  • Team Cohesion

Strategies for Improving Team Negotiations

  • Prepare together
  • Plan scheduled breaks
  • Role-play with each other
  • Assess accountability

Inter-group Negotiation

  • Walton and McKersie Model

Distributive Bargaining

Integrative Bargaining

Attitudinal Restructuring

Intra-organizational Bargaining

Case Study: MIT-TLO

  • Nita Nelson – Director of TLO
  • Different stakeholders – balancing needs
  • Process transformation – distributive to win-win
  • Strategies:
  • Unbundling
  • Brain-storming
  • Ethical and fair
  • Resilient and willing to stand up to pressure