The sluggers come home…
Notes from Video
Part 1 – Preparation
Broad Questions
 What are the main categories of negotiation?

What negotiation tactics did Ted/Billy (stadium owners) and Barbra (team owner) use?
Where they effective? Why or Why not?

What can you do to make your own negotiation skills/tactics more successful?
Specific Questions
Two broad categories of negotiations
1. Distributive
Determine how the pie is divided
2. Integrative
Have the potential to expand the size of the pie available for the negotiators to divide
for both parties
Two common irrational tendencies in negotiation:
Unrealistic expectations:
Escalation of commitment:
Two keyways to help resist escalation of commitment:
3. BATNA
stop their financial loss and keep the diamond
4. Reservation Price
$240k
Over competitiveness:
Barbra is over confident and over competitive, used distributive strategy
- Mythical Fixed-Pie
Negotiating tactics:
Quick deal
- Might get a pleasant surprise (low offer)
Let other party make first offer
- Should be ambitious but renegotiable
Anchors
-
First number presented often becomes an anchor
Part 2 – Bargaining
Giving information and secrecy
- Ted lied about having offers and reservation price, Barbra would not give info on
attendance figures
Exchange information
- Ted asked questions and took notes, They should have reciprocated info to gain
trust and understanding
Flinch
Anchors
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Barbra was shocked at Teds 500K anchor offer
500K
Barbra -------------------------------------------------------------------------------- Ted
200k - - - - - - - - - . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 500K
Framing
Risk vs. opportunity
- Risk=attendance, opportunity=new park lots of amenities
Purchase price vs. net profit potential
- Ted is trying to adjust Barbra’s frame of gate receipts vs. concession sales
Risk
-
One party perceives risk more than the other
Often two parties have different ideas of risk
Integrative vs. Distributive negotiation
Price negotiations / one issue are distributive
-lease rate is distributed
Variable lease rate is integrative
Signals in distribution negotiation
- Bids
Big change – indicate further concessions
small change – indicate less willing for further concessions
ted reduced size of his concessions and is taking more time to respond
- Speed
Speed is a signal, faster response means more eager
Suggestions if reach an impasse
1. Focus on interests vs. positions
2. Make small concessions
3. Take a break
4. Bring in a third party
Emotions:
Curry is angry Barbra won’t make a deal (karla is keeping them on track)
Information:
- Inventory is not important cause it says woodland
- Mayor Bob had a old major leaguer who would join and can assure Barbra about the
attendance
Negotiating “in a closet”
- Avoid making subsequent proposals until all other point have been resolved
Part 3 – Settlement
Rules of Thumb:
- Negotiate to the end
-
Read agreement carefully
-
Agree on the meaning of every provision in agreement
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Deal is done and Barbra wanted thwe park for 2 weeks in the spring and then ted
took over cleaning for 10% more parking
Nibble
Post-settlement Settlement
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