Negotiation Paige Turner – Bestbooks Case
Paige Turner – Best books • Contract negotiation between an author and a book company. • 8 issues to negotiate over. Point totals are on the back. DO NOT TALK ABOUT POINTS, but realize that you want to maximize your point value. • You have 30 minutes to reach an agreement • CORRECTION: Bestbook’s point sheet has wrong header, rest of the page is ok
Solution • What is the max point value for Turner’s Agent? • What is the max point value for Bestbooks? • Who has the highest point total?
Issues • Fixed Sum: distributive, best thing to do is trade off • Variable Sum: integrative, potential to optimize mutual gain. Gaining information from each other would lead to both sides getting maximum amount of points. • Compatible: integrative, both sides have the same interests
Splitting Bestbooks 20300 Turner 20300 Total 40,600
Least Optimal Bestbooks 16500 Turner 12,500 Total 29,000
Optimal solution Bestbooks 24100 Turner 29100 Total 52,200
Takeaway • Identify people’s needs and wants as well as your own • Realize when there is potential for an integrative solution