Objective: To form a coalition with another team, in order to divide a stake. The coalition must also decide on a way of dividing the stake so as to satisfy both parties. Can you find a win-win solution?
Situation: A state agency has announced that it will provide a substantial incentive to any two groups who can reach agreement on ways to improve services by cooperating. Three groups have been invited to participate as teams in negotiating for this stake: a group of academic library directors who represent the major colleges and universities in the state; a group of computing center directors from these same universities; and a group of public library directors who represent the major public li brary systems in the state.
The Stake: Each team has unequal resources and different coalitions will receive different payoffs. The following table shows the payoff possibilities:
- Public libraries and computer centers will receive a stake of $600,000.
- Academic libraries and computer centers will receive a stake of $475,000.
- Academic libraries and public libraries will receive a stake of $350,000.
The Strategy: Each team will meet separately to develop a strategy before the negotiations. Each team must also select a negotiator (the spokesperson).
Rules for Negotiation:
|
Time |
Negotiating Teams |
|
|
|
|
11:10 |
Public libraries & Computing centers |
|
11:15 |
Academic libraries & Computing centers |
|
11:20 |
Academic libraries & Public libraries |
|
|
|
|
11:25 |
Public libraries & Computing centers |
|
11:29 |
Academic libraries & Computing centers |
|
11:33 |
Academic libraries & Public libraries |
|
|
|
|
11:35 |
Public libraries & Computing centers |
|
11:37 |
Academic libraries & Computing centers |
|
11:39 |
Academic libraries & Public libraries |
|
|
|
|
11:42 |
All teams back in classroom. |
Valid Coalitions:
A valid coalition will be recognized by the instructor only if:
- Each of the two teams receive a different amount of money, and
- Neither of the two teams receives zero.
After negotiations, all three teams have the opportunity to submit a written statement in the following form:
Team X has a coalition with Team Y, whereby Team X gets $xxx,xxx and Team Y gets $xxx,xxx.
When the same written statement is received from two teams, a valid coalition has been formed.
Revised 2/2/98.