## This document https://hackmd.io/@onefact/columbia-negotation/edit # Goal ## Perception of participants in a negotiation - politeness - professionalism - perceived fairness Rate independent of perceived skill, as long as it didn't offend you. As long as it didn't make you feel manipulated. https://adaptation.cs.columbia.edu/ ## Scenario A scenario Standard MBA class, Western business context. Weigh social and economic equally. Low favorable number for themselves, but don't let that anchor you. What role to think of myself as when rating? - selling a second hand car to others in a professional way - online negotiation platform, typed work in platform - prolific ### Seller You were just promoted at work and you received an unusually large bonus for a job well done on a recent project. You have decided it’s time to buy a new car. Because you can park only one car at your apartment building, the only thing standing in the way of bringing a new car home is selling the old one: a Honda Accord. You have no sentimental feeling toward the Honda: you hate the car and are delighted to get rid of it. Fortunately, a friend of a friend of a friend has expressed interest in buying the car. When you bought the car in 2004 you paid about $21,000 for it. Similar cars today sell within a range of $11,000 to $15,000, depending on condition. The Honda has reasonable mileage (50,000 miles), automatic transmission, air conditioning, power steering/windows/door locks, and a CD player. It looks great: a dark green without any rust. You would like to get a price as much above $12,500 as possible. Normally, you would wait around for the best deal but you have just learned that a brand new Volkswagen Passat—your new favorite car—has become available if you can sell the old Honda and make it to the Volkswagen dealer within 2 hours. This Passat happens to be configured exactly how you want it; if you can’t get this one, there will be a significant time delay in ordering the car. Unfortunately, the most the dealer will give you in trade on the Honda is $12,500. This is barely enough for you to buy the Passat (your bonus will cover the rest), but it won’t get you the extras you would like, such as a roof rack and high-performance tires. You really would greatly prefer to sell your Honda privately. Still, you can’t accept less than $12,500 for the Honda, because that is what the dealer has offered. If you can’t get a price above $12,500, you will sell it to the dealer. ### Background: Situation Description: 1. Promotion and Bonus: You were just promoted at work and received an unusually large bonus for a job well done on a recent project. 2. Decision: You have decided to buy a new car. 3. Limitation: You can park only one car at your apartment building, so you need to sell your old car (a Honda Accord) before bringing a new one home. ### Primary Needs: Target Car: Selling the Honda Accord Feelings Toward Car: You hate the car and are delighted to get rid of it. Potential Buyer: A friend of a friend of a friend has expressed interest in buying the car. Purchase History: Bought in 2004 for about $21,000. Current Market Range: Similar cars sell within a range of $11,000 to $15,000, depending on condition. Car Condition: 1. Mileage: 50,000 miles 2. Automatic transmission 3. Air conditioning 4. Power steering/windows/door locks 5. CD player 6. Looks great: dark green without any rust Sale Goal: You would like to get a price as much above $12,500 as possible. ### Alternative Option: 1. Trade-In Offer: 1. Dealer Offer: $12,500 for trade-in. 2. Condition: Barely enough to buy the new Volkswagen Passat, but it won’t cover the extras you would like (roof rack and high-performance tires). 3. Preference: Greatly prefer to sell the Honda privately for more than $12,500. ### Time Constraint: 1. Urgency: The brand new Volkswagen Passat (your new favorite car) has become available. 2. Availability: The Passat is configured exactly how you want it. 3. Deadline: You need to sell the Honda and make it to the Volkswagen dealer within 2 hours to get the Passat. 4. Delay Risk: If you can’t get this Passat, there will be a significant time delay in ordering the car. ### Sale Constraints: 1. Minimum Acceptable Price: You can't accept less than $12,500 for the Honda because that is what the dealer has offered. 2. Choice Strategy: If you can’t get a price above $12,500, you will sell it to the dealer. ### Scenario B scenario You have a longtime lease of a studio apartment in a building near the university called “Horizon Loft.” You have recently been selected for a position abroad this summer. You have to depart tomorrow morning. Because you are so busy, you only got around to listing the studio with photos on a website for summer sublets yesterday. In this area, summer sublet tenants typically pay a lump sum upfront for June, July, and August. The total price is negotiated informally between the apartment owner (or leaseholder) and the subletter. According to the website, prices for sublets of studios range between $6,600 and $9,000 for three months. It is a well-equipped studio featuring a modern kitchen and shared laundry facilities. Based on your rent, the cost of the apartment for the three summer months would be $11,700. However, summer sublet rates are set lower because there are many vacancies. You didn’t include a price in your website listing as you didn’t want to deter any potential renters from contacting you. So far only one person has emailed you, a student from the same university that you were affiliated with who seems reliable. You set up a time soon to chat about a potential sublet deal. Getting the highest possible price is less important to you than securing a deal, but you will try to get a high price in case that is possible. To get this potential subletter to commit today, you won’t have time to negotiate with anyone else. You hope that after the negotiation in the following hour, they come by to drop off a check and pick up the key. If you can’t get a price agreement of at least $7500 you won’t sublet the apartment at all as it wouldn’t be worth the trouble.