Multiparty Negotiation
Dr. Caneel K. Joyce
30 June 2011
Timing for Today
•  Review your preparation notes (Planning
Document)
•  We’ll negotiate in breakout rooms
•  Use the poster easels to facilitate negotiation
and write proposals for voting (three rounds)
•  When time is up give your completed Final
Proposal Sheet to Alex!!
•  Today & tomorrow, break is later: 11:10-11:40
•  After break return to lecture hall
Dr. Caneel Joyce
Executive Summer School
2
1
Review your
plan for a
few minutes
1.  Purpose
2.  Interests &
Priorities
3.  BATNAs
4.  Options & Issues
5.  Standards
6.  Proposals
7.  Intentions
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Dr. Caneel Joyce
Executive Summer School
3
Harborco Rules: Voting
•  Three formal scheduled rounds of voting by secret ballot
–  15 minutes, 40 minutes, and 75 minutes into discussion
–  Time limits will be strictly enforced.
–  The FLA Rep (played by Caneel or Alex) will come to take your ballots.
•  Harborco makes proposals for formal votes (one option per issue)
–  Though other members may make proposals for straw votes at any point
–  If Harborco cannot decide in time for the scheduled vote, your group will vote on
Harborco’s initial proposal
•  When a proposal is passed (min 5 Yes votes) the vote is binding
–  Your team can then negotiate on improvements (require unanimous support)
•  If your team has not approved a proposal by the end of negotiations,
the FLA will reject Harborco's application
Dr. Caneel Joyce
Executive Summer School
4
2
Secret Ballots
Secret Ballot
Round
Secret Ballot
Final Round
1
Secret Ballot
Round
2
(15 mins)
(40 mins)
(75 mins)
Environment
Environment
Environment
Write
"Y" or "N"
Write
"Y" or "N"
Write
"Y" or "N"
N
Y
Dr. Caneel Joyce
Executive Summer School
3
5
Harborco Final Proposal Voting Record Sheet - Use for final voting round only!
How Voting Works:
There are three scheduled rounds of voting by secret ballot: 15 minutes, 40 minutes, and 75 minutes into discussion. Time limits will be strictly enforced. The FLA Rep (played
by Caneel or Alex) will come to take your ballots.
For each round, Harborco makes the proposal (containing one option for each issue). If Harborco can not decide on a complete proposal in time for the scheduled voting
round, then FLA will require that your group votes on the initial proposal put forth by Harborco at the beginning of the negotiation. (Other members of the group may make
proposals for straw votes at any point, but only Harborco can make proposals for formal voting rounds.)
If a proposal is passed in any round (meaning it receives at least five Yes votes), then the votes is binding. From that point forward, your team can negotiate on improvements
to this proposal. If such improvements receive unanimous support in the final round of voting, they wil be incorproated into teh final agreement (please describe only these
agreemetns in the space below once they have been unanimously supported). If they do not have unanimous support, then the initially approved proposal stands.
How to record your final proposal:
STEP 1. Enter the Final Proposal being put up for
STEP 2. For the final vote only, circle Y or N beneath each name.
vote, using the number given for each option (For
example, for issue A: Industry Mix, you would enter
a "1" for "primarily dirty", a "2" for "clean/dirty", and a -->
"3" for "all clean".)
Group
1
Industry Mix
(1-3)
Final Proposal
Ecological Impact
(1-3)
Employment Rules
(1-3)
Harborco
Environment
Unions
Other Ports
Federal DCR
Governor
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Circle
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Circle
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
any other improvements made?
Federal $
(1-3)
Comp to Ports
(1-5)
Dr. Caneel Joyce
Executive Summer School
6
3
Harborco Final Proposal Voting Record Sheet - Use for final voting round only!
How Voting Works:
There are three scheduled rounds of voting by secret ballot: 15 minutes, 40 minutes, and 75 minutes into discussion. Time limits will be strictly enforced. The FLA Rep (played
by Caneel or Alex) will come to take your ballots.
For each round, Harborco makes the proposal (containing one option for each issue). If Harborco can not decide on a complete proposal in time for the scheduled voting
round, then FLA will require that your group votes on the initial proposal put forth by Harborco at the beginning of the negotiation. (Other members of the group may make
proposals for straw votes at any point, but only Harborco can make proposals for formal voting rounds.)
If a proposal is passed in any round (meaning it receives at least five Yes votes), then the votes is binding. From that point forward, your team can negotiate on improvements
to this proposal. If such improvements receive unanimous support in the final round of voting, they wil be incorproated into teh final agreement (please describe only these
agreemetns in the space below once they have been unanimously supported). If they do not have unanimous support, then the initially approved proposal stands.
How to record your final proposal:
STEP 1. Enter the Final Proposal being put up for
STEP 2. For the final vote only, circle Y or N beneath each name.
vote, using the number given for each option (For
example, for issue A: Industry Mix, you would enter
a "1" for "primarily dirty", a "2" for "clean/dirty", and a -->
"3" for "all clean".)
Group
___
Industry Mix
(1-3)
Ecological Impact
(1-3)
Employment Rules
(1-3)
Federal $
(1-3)
Comp to Ports
(1-5)
Final Proposal
2
3
Harborco
Environment
Unions
Other Ports
Federal DCR
Governor
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Y/N
Y/N
Y/N
Y/N
Y/N
any other improvements made?
1
1
We will host an opening party sponsored by the local unions.
5
Dr. Caneel Joyce
Executive Summer School
7
Harborco
90 minutes
Voting Round 1: 15 mins (before 10:00)
Voting Round 2: 40 mins (before 10:25)
Voting Round 3: 75 mins (before 10:55)
Groups 1 & 2
Room 109
Groups 3 & 4
Room 114
4
Break
11:10 - 11:40
Negotiation Journals
Individual Observations
Class Results
Peer Feedback
Individual Reflection & Summary
Discussion
5
Negotiation Journals
Individual Observations
Class Results
Peer Feedback
Individual Reflection & Summary
Discussion
Class results
Final Scores by Group
450
400
350
300
250
200
150
100
50
0
Group 1
Group 1
Group 2
Group 3
Group 4
Dr. Caneel Joyce
Executive Summer School
Group 2
Group 3
410
363
0
399
Group 4
Y
Y
N
Y
12
6
Class results
Final Scores by Issues
160
140
120
100
Average
Min
Max
80
60
40
20
0
Industry Mix Ecological Employment Federal $
Impact
Rules
Average
70
77
73
68
60
Industry Mix
Ecological Impact
Employment Rules
Federal $
Comp to Ports
Dr. Caneel Joyce
Executive Summer School
Comp to
Ports
Min
47
67
7
56
50
Max
77
89
150
76
68
13
Class results
Final Scores by Group and Role
450
400
350
Governor
300
250
Federal
DCR
200
Other Ports
150
100
Union
50
Environment
0
Group 1
Group 2
Group 1
Environment
Union
Other Ports
Federal DCR
Governor
Dr. Caneel Joyce
Executive Summer School
Group 3
Group 4
Group 2
77
89
57
56
68
Group 3
77
83
7
76
63
Group 4
47
69
150
69
60
77
67
78
70
50
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Negotiation Journals
Individual Observations
Class Results
Peer Feedback
Individual Reflection & Summary
Discussion
Negotiation Journals
Individual Observations
Class Results
Peer Feedback
Individual Reflection & Summary
Discussion
8
Negotiation Journals
Individual Observations
Class Results
Peer Feedback
Individual Reflection & Summary
Discussion
Many Pareto Efficient Solutions
•  In general, when reservation prices are relatively high, as
in this case, there are few suboptimal solutions in multiparty, multi-issue situations
•  55 possible agreements
•  9 with consensus
•  Only 4 that were Pareto inefficient
Dr. Caneel Joyce
Executive Summer School
18
9
What was your strategy?
•  Harborco
–  Did you just reach your minimum for the deal? Why
did you not claim more value?
–  Did you manage to get more points for yourself? How
did you do it?
•  DRC
–  Did you give $3 million? (This is rare) If so, how did
this happen?
Dr. Caneel Joyce
Executive Summer School
19
What was your strategy?
•  Ports
–  Did you vote No on the deal that went through, even though you
got nothing? Why?
–  Did you vote Yes? Why?
–  Did you kill the deal? How?
•  Did anybody try to form coalitions? Which roles?
–  Unions, the government, and even environment can pretty easily
be given a deal that generates more points than their RP’s
–  For this reason they are unlikely to stay with a coalition
Dr. Caneel Joyce
Executive Summer School
20
10
What was the effect of having to vote?
•  Harborco: what was more effective in helping you
understand the other parties’ positions on the issues discussion or voting?
•  Under what circumstances would voting provide the most
information about positions on issues?
•  If parties are forthcoming with positions and interests,
can you dispense with voting? What would you lose?
•  Voting forces negotiators to:
–  Link issues
–  Consider alternative multi-issue proposals
Dr. Caneel Joyce
Executive Summer School
21
HARBORCO
Summary of Points
Harborco
Env
Ports
14
8
0
0
22
45
0
4
10
14
8
0
0
11
5
15
20
0
Ecological Impact
1. Harm
2. Main/rep
3. Improve
11
7
0
0
25
55
0
0
0
12
8
0
0
20
25
0
0
0
Employment Rules
1. Union preference
2. 2:1
3. 1:1
4. No preference
0
5
10
17
0
0
0
0
12
8
6
0
24
18
12
0
0
2
4
9
42
35
25
0
Fed Loan
1. $3 B
2. $2 B
3. $1 B
4. None
35
29
20
0
0
0
0
0
0
8
13
18
40
30
23
0
10
26
40
0
30
20
10
0
0
5
10
15
23
55
0
0
0
0
0
50
60
45
30
15
0
31
0
2
4
7
10
30
4
8
15
12
0
65
2
4
6
8
0
50
Industry Mix
1. Dirty
2. Clean/dirty
3. All clean
Other Ports
1. $600 M
2. $450 M
3. $300 M
4. $150 M
5. No
Reservation Price
Dr. Caneel Joyce
Executive Summer School
Gov
DCR
Unions
22
©1996-2010 Dispute Resolution Research Center, Northwestern University. All rights reserved.
11
RP Max possible Harborco Enviro Union Ports DCR Governor 55 50 50 31 65 30 77 100 90 64 100 77 Dr. Caneel Joyce
Executive Summer School
23
Strategies and Tactics for
Negotiating in Groups
Mutual
Strategy
Coalitional
Strategy
Individual
Strategy
Share own interests and
elicit others’ interests
Seek similar others and
construct an alternative
that meets your collective
interests
Open with a high, but not
outrageously high demand
Consider many
alternatives; be creative;
seek ways to use available
resources
Don’t just compromise;
make tradeoffs
Encourage positive
relations
Dr. Caneel Joyce
Executive Summer School
Recruit just enough
members to control the
group’s decision
Encourage interpersonal
obligations among
coalition members
Argue the merits of your
alternative; do not reveal
your interests
Appear unable or unwilling
to concede
Use threats, deadlines,
and promises if necessary
Encourage positive
relations
24
12
How can you apply lessons from
Harborco to running meetings?
Learning points:
(1) fragility of coalitions
(2) need to get on the bandwagon when you can no
longer maintain a blocking coalition
(3) be careful in leading such a group that you do not
take all the concessions out of your own value
(4) link issues in proposals rather than voting on one
issue at a time.
Dr. Caneel Joyce
Executive Summer School
25
13