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15.067 | Spring 2011 | Graduate

# Competitive Decision-Making and Negotiation

### Text and Assigned Readings

There is one principal text for the course: The Mind and the Heart of the Negotiator by Leigh Thompson, Prentice-Hall, Fourth Edition, 2009. Leigh Thompson’s book is very easy to read and full of informative vignettes and practical advice about how to prepare, what to do at the bargaining table and how to be strategically creative. Chapters are well organized and mostly self-contained. We ask that you read Chapter 1, “Negotiation, The Mind and the Heart” in advance of the first class. Chapter 2 offers valuable advice about preparation for negotiations. Chapter 3 addresses distributive bargaining – “split the pie” cases - and lays out basic concepts that we tap throughout the course. What to do at the bargaining table and how to be creative and expand the pie for all are covered in Chapters 4 through 8. The oft-asked question “How should I behave at the bargaining table?” is addressed in Chapter 5.

[Thompson] = Thompson, Leigh L. The Mind and the Heart of the Negotiator. 4th ed. Prentice-Hall, 2008. ISBN: 9780131742277.

SES # | TOPICS | READING ASSIGNMENTS
--- | --- | ---

1 | Anchoring and First Offers Street Streaker | [Thompson] Chapter 1: “Negotiation: The Mind and the Heart,” and Chapter 2: “Preparation: What to Do Before Negotiation.” Wu, George. “Anchoring & First Offers in Negotiation.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–070, April 26, 1995. Raiffa, Howard, James K. Sebenius, et al. “Wheeling and Dealing: The Zirconia GT.” Harvard Business School Cases. Harvard Business School Publishing. Case: 9–895–013, November 23, 1994.

2 | Salt Harbor | [Thompson] Chapter 3: “Distributive Negotiation: Slicing the Pie.” Carr, Albert Z. “Is Business Bluffing Ethical?” Harvard Business School Case. Harvard Business School Publishing. Case: 1–391–298, Jan 01, 1968. Shell, G. Richard. “When is it Legal to Lie in Negotiation?” Sloan Management Review, April 1991, 93. Adler, Robert. “Negotiating with Liars.” Sloan Management Review, July 2007. “Salt Harbor (A).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–800–077. “Salt Harbor (B).” Harvard Business School Cases. Harvard Business School Publishing. Case: 9–800–078.

3 | Oil-Price Negotiation | [Thompson] Chapter 11: “Tacit Negotiations and Social Dilemmas,” and Appendix 1: “Are You a Rational Person?” #### Suggested Readings Raiffa, H., J. Richardson, and D. Metcalfe. “Game Theory.” Chapter 4 in Negotiation Analysis, The Science and Art of Collaborative Decision Making. Belknap Press of Harvard University Press, 2007. ISBN: 9780674024144. Luce, R. Duncan, and Howard Raiffa. Games and Decisions: Introduction and Critical Survey. J. Wiley & Sons, 1957. ISBN: 9780471553410.

4 | Nelson Contracting CP Hong Kong vs. MegaMarket U.S.A. | [Thompson] Chapter 4: “Win–Win Negotiation: Expanding the Pie,” and Chapter 7: “Power, Persuasion and Ethics.” #### Suggested Reading [Thompson] Chapter 12: “Negotiating via Information Technology.”

5 | Jessie Jumpshot - Women’s National Basketball League | [Thompson] Chapter 4, and Chapter 8: pp. 89–91, and pp. 191–4. Bazerman, Max H., and James J. Gillespie. “Betting on the Future: The Virtues of Contingent Contracts.” Harvard Business School Cases. Harvard Business School Publishing. Case: 99501, Sep 01, 1999. “Jessie Jumpshot (B–1), Boston Sharks.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–801–251. “Jessie Jumpshot (B–2), Jessie Jumpshot.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–801–252. “Jessie Jumpshot (B–3), Jumpshot’s Agent.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–801–253. Sebenius, James K., Ian I. Larkin, et al. “Negotiating Star Compensation at the USAWBL (A–1): Confidential Instructions for Jesse J.” Harvard Business School Case. Harvard Business School Publishing. Case: 906–026, January 05, 2006. (Revised October 2009.) ———. “Negotiating Star Compensation at the USAWBL (A–2): Confidential Instructions for the Boston Sharks General Manager.” Harvard Business School Case. Harvard Business School Publishing. Supplement: 906–027, January 05, 2006. (Revised October 2009.) ———."Negotiating Star Compensation at the USAWBL (A–3): Confidential Instructions for Jesse J’s Agent." Harvard Business School Case. Harvard Business School Publishing. Supplement: 906–028, January 05, 2006. (Revised October 2009.)

6 | The Rothman Art Collection | Raiffa, Howard, and Thomas T. Weeks. “The Equitable Division of Art Collection.” 1986. Unpublished work. Raiffa, Howard. Lectures on Negotiation Analysis, Program on Negotiation at the Harvard Law School, 1998. #### Suggested Reading Brams, Steven J., and Alan D. Taylor. Fair Division: From Cake Cutting to Dispute Resolution. Cambridge University Press, 1996. ISBN: 9780521556446. [Preview with Google Books]

7 | Stakes of Engagement | [Thompson] Chapter 5: “Developing a Negotiating Style.” General Instructions for Both Parties: Sabin, Nicholas. “The Stakes of Engagement.” Program on Negotiation at the Harvard Law School. #### Suggested Reading Shell, G. Richard. Bargaining for Advantage: Negotiation Strategies for Reasonable People. Penguin Books, 2000. ISBN: 9780140281910.

8 | Alphexo vs. Betonn Corporation | Sebenius, James K. “Alphexo Corporation: Confidential Negotiation Information.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–801–418, May 01, 2001. ———. “Betonn Corporation: Confidential Negotiation Information.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–801–419, ———. “Six Habits of Merely Effective Negotiators.” Harvard Business Review 79, no. 4 (2001): 87–95.

9 | WineMaster.com | Subramanian, Guhan. “Winemaster.com (A–1), Confidential Instructions for Winemaster.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–800–249, January 04, 2000. ———. “Winemaster.com (A–2), Confidential Instructions for HomeBase.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–800–250, January 04, 2000.

10 | Aerospace Investment | [Thompson] Chapter 5: “Discussion of Emotions and Emotional Intelligence.” Sabin, Nicholas. “Aerospace Investment: Balancing Venture and Relationship Capital.” Program on Negotiation at the Harvard Law School.

11 | Flagship | [Thompson] Chapter 9: “Team Negotiation”, and “Intergroup Negotiation.” pp. 230–234, and pp. 235–40. General Information: Moore, Paddy, Hal Movius and Lawrence Susskind. “Flagship Airways.” Program on Negotiation at the Harvard Law School.

12 | Welsh Water | Robinson, Robert J. “Welsh Water (A).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–040, June 29, 1995. ———. “Welsh Water (B).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–041, June 29, 1995. ———. “Welsh Water (C).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–042, June 29, 1995. ———. “Welsh Water (D).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–043, June 29, 1995 ———. “Welsh Water (E).” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–044, June 29, 1995. ———. “Welsh Water (F): Postscript.” Harvard Business School Case. Harvard Business School Publishing. Case: 9–895–045, June 29, 1995.

13 | Debrief Welsh Water and CP Hong Kong vs. MegaMarket U.S.A. Course Recap | None

## Course Info

##### Instructor

- Prof. Gordon Kaufman

##### Departments

- Sloan School of Management

##### As Taught In

Spring 2011

##### Level

Graduate

##### Topics

- Business
  - Business Ethics
  - Management

##### Learning Resource Types

notes Lecture Notes
assignment Activity Assignments

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