BUS 485 Chapter Notes - Chapter 9: Situation Two, Zopa, Brainstorming

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 485
• Professor: mitra kiamanesh

Document Summary

There are six levels of analysis beyond one-on-one negotiation: multiparty negotiations, coalitions, principal-agent relationships, constituencies, team negotiation, team-on-team negotiations, or intergroup negotiations. A multiparty negotiation is formed when a group of three or more individuals, each representing his or her own interests, attempts to resolve perceived differences of interest. When negotiators share a social network, they already have a basis of trust; they are more likely to follow through on commitments, and power differences are not as magnified: manage the information and systematize proposal making. These roles can be rotated: stay at the table. Impersonal strategies for maximizing effectiveness of coalitions: make your contacts early, seek verbal commitments, use unbiased-appearing rationale to divide the pie. The reason why principal-agent negotiations are problematic is that a risk-neutral principal must negotiate an incentive contract to motivate a risk-averse agent to undertake costly actions that cannot be observed.