Negotiation: principle arguments
A(Abe) + B(Bea)
I) PIE ARGUMENT
Abe(alone) can get one piece of the pie
Bea(alone) can get two pieces of the pie
Together they can get 9 pieces of the pie if they came together:
How to argue?
Principled Arguments: “...acts with integrity and honesty, with a strong sense of fairness, justice and respect for the dignity of the individual, groups and communities. They take responsibility for their own actions and the consequences that accompany them.”
Argument: If Abe and Bea can get 9, but Bea can get 2 by herself, she is twice as strong as Abe so Bea should get twice as much or 2/3 of the pie. Bea should get 6 while Abe gets 3.
Why is this wrong? Because Abe needs Bea just as much as Bea needs Abe
-if they don't work together then the extra pie gets lost
The fundamental point that underlies all negotiations is:
-What is the pie?
-Keys are in a symmetrical position
The pie is 6, and Abe and Bea can get 2 and 1 respectively.
divide the pie into 2 (6/2) and they each get 3 each
Abe (1+3)
Bea (2 + 3)
Initially: How much should Bea ask for as a starting point?
-propose that you get at least half the pie, or even all of it
-if you ask for more than condeded some portion to Abe(concede: surrender or yield (something that one possesses)
-if you ask for less than half, you'll get less than half
-5-8 range is reasonable with included 2 to start with
II) WATER BOTTLE
Abe and Bea are thirsty
-Abe has $.60 can buy 6 oz. bottle
-Bea has $1.00 an by 16 oz. bottle
Together Abe and Bea can put their money together to buy a bottle that is 32 oz.
What is the pie?
6 oz + 16 oz = 22 oz bottle
32 oz - 22 oz = 10 oz
10 oz is the pie
How should the pie be split? 50/50 because Abe needs Bea just as much as Bea needs Abe
Abe gets his original 6 ounces, but also gets half the pie or 5 ounces which is 11 ounces
Bea gets her original 16 ounces, but also gets half the pie or 5 ounces which is 21 ounces.
III) BEDROOM
Abe wants a 2 bedroom apartment ($600k)
Bea wants a 3 bedroom apartment ($800k)
Abe and Bea consider buying a 1.2 million house 1/2 --> 2 rooms, 1/2 --> 3 rooms
Options:
A) ratio of bedrooms 3: 2 or ratio of square footage 5:4
B)Ratio of Separate purchases 4: 3
C) split gains evenly --> saved 200k savings
Neither could get savings without the other
2 bedroom charged $500k
>>>>>Ratio 7:5
3 bedroom charged $700k
