Bargaining and Negociations

The course will cover the following material in this order.

1) Fundamentals of interest-based negotiation, including interdependence, BATNAs, ZOPAs, and win-lose (distribution) vs. win-win (integration) negotiations.

2) Distribution as a coordination game. Distribution as a low-dimensional problem. The fundamental informational problem underlying distributive negotiation. Tactics for distributing. Hardball tactics.

3) Integration as a high-dimensional problem. The Pareto Frontier. Integration as a joint effort to solve a problem. Tactics for integrating. Trust and information sharing.

4) Distributive norms, shared cultural background, and focal points as solutions to the the equilibrium selection problem in distributive negotiations. Conflicting focal points and self-serving biases lead to impasse.

5) Anchors and other reference points in negotiations and renegotiations.

6) Repeated interactions and power asymmetries in negotiations.

7) Cognitive biases in negotiations.

8) Individual and cultural differences in negotiations.

9) Crisis situations.