MBA Multiparty Negotiation Multiparty NegotiationMany negotiation situations involve more than two partiesA group of students doing a group projectA group of experts designing a houseInternational forumsUnited NationsClimate change ConceptsBuilding Blocks Primary Parties (individuals, groups, nations) Coalitions (Cooperative and non-cooperative) Third Party (Agent, consultant, mediator) Entities supporting the Primary PartyBoundariesLeast complex (e.g., 3-party)Most complex (e.g., GATT Uruguay Round) Multiparty NegotiationMultipartyCoalitionsPrincipal-AgentTeamsConstituencies Three Key ChallengesDealing with CoalitionsPotential for coalitionsFormulating TradeoffCircularReciprocal Voting and Majority RuleArrow’s “Impossibility theorem” Strategies for Multiparty NegotiationManage InformationInformation overloadUse BrainstormingAfter solitary writingAssign Process RulesAvoid Equal Share BiasStay at the Table Coalitions A coalition is a subgroup of two or more individuals who join together in using their resources to affect the outcome of a decision in a mixed-motive situation involving at least three parties. Challenges Posed by CoalitionsOptimal SizeCoalition MaintenanceA function of cost and rewardDistribution ProblemComplexA normative method of fair distribution does not exist. Strategies for Maximizing Coalition EffectivenessMake your contact early.Make agreementSeek verbal commitmentTrust and follow-throughAllocate resources among coalition members fairlyIf unfair  unstable coalition Principal-Agent Relationship One individual (the principal) delegates authority to another (the agent) to act on his/her behalf and whose decisions impact the principal’s welfare. If differing interests and can’t determine agent’s action = moral hazard  opportunistic behavior Principal-Agent in NegotiationAdvantagesProvide substantive knowledge, expertiseEmotional detachment DisadvantagesShrinking bargaining zoneCommunication distortionLoss of controlGetting to “yes’ bias * ConstituentChallenges for constituent relationshipAccountabilityConflicts of interestStrategies for Improving Constituent RelationshipUnderstand your constituentsDon’t expect homogeneity of viewsEducate your constituent on your role and limitations Team Negotiation A small group of people, with complementary skills, who work toward common goals for which they hold joint responsibility and accountability. Challenges that Face Negotiating TeamsPicking your teammatesHow many on the team?Communication within the teamTeam Cohesion Strategies for Improving Team NegotiationsPrepare togetherPlan scheduled breaksRole-play with each otherAssess accountability Inter-group NegotiationWalton and McKersie Model Distributive Bargaining Integrative Bargaining Attitudinal Restructuring Intra-organizational Bargaining Case Study: MIT-TLONita Nelson – Director of TLODifferent stakeholders – balancing needsProcess transformation .

1. MBA
Multiparty Negotiation
Multiparty NegotiationMany negotiation situations involve
more than two partiesA group of students doing a group
projectA group of experts designing a houseInternational
forumsUnited NationsClimate change
ConceptsBuilding Blocks
Primary Parties (individuals, groups, nations)
Coalitions (Cooperative and non-cooperative)
Third Party (Agent, consultant, mediator)
Entities supporting the Primary PartyBoundariesLeast complex
(e.g., 3-party)Most complex (e.g., GATT Uruguay Round)
Multiparty NegotiationMultipartyCoalitionsPrincipal-
AgentTeamsConstituencies
Three Key ChallengesDealing with CoalitionsPotential for
coalitionsFormulating TradeoffCircularReciprocal Voting and
Majority RuleArrow’s “Impossibility theorem”

2. Strategies for Multiparty NegotiationManage
InformationInformation overloadUse BrainstormingAfter
solitary writingAssign Process RulesAvoid Equal Share
BiasStay at the Table
Coalitions
A coalition is a subgroup of two or more individuals who join
together in using their resources to affect the outcome of a
decision in a mixed-motive situation involving at least three
parties.
Challenges Posed by CoalitionsOptimal SizeCoalition
MaintenanceA function of cost and rewardDistribution
ProblemComplexA normative method of fair distribution does
not exist.
Strategies for Maximizing Coalition EffectivenessMake your
contact early.Make agreementSeek verbal commitmentTrust and
follow-throughAllocate resources among coalition members
unstable coalition
Principal-Agent Relationship
One individual (the principal) delegates authority to another
(the agent) to act on his/her behalf and whose decisions impact
the principal’s welfare.

3. If differing interests and can’t determine agent’s act
moral hazard
Principal-Agent in NegotiationAdvantagesProvide substantive
knowledge, expertiseEmotional detachment
DisadvantagesShrinking bargaining zoneCommunication
distortionLoss of controlGetting to “yes’ bias
*
ConstituentChallenges for constituent
relationshipAccountabilityConflicts of interestStrategies for
Improving Constituent RelationshipUnderstand your
constituentsDon’t expect homogeneity of viewsEducate your
constituent on your role and limitations
Team Negotiation
A small group of people, with complementary skills, who work
toward common goals for which they hold joint responsibility
and accountability.
Challenges that Face Negotiating TeamsPicking your
teammatesHow many on the team?Communication within the
teamTeam Cohesion

4. Strategies for Improving Team NegotiationsPrepare
togetherPlan scheduled breaksRole-play with each otherAssess
accountability
Inter-group NegotiationWalton and McKersie Model
Distributive Bargaining
Integrative Bargaining
Attitudinal Restructuring
Intra-organizational Bargaining
Case Study: MIT-TLONita Nelson – Director of TLODifferent
stakeholders – balancing needsProcess transformation –
distributive to win-winStrategies:UnbundlingBrain-
stormingEthical and fairResilient and willing to stand up to
pressure