General description and course goals

The purpose of the present course is to understand the theory and processes of negotiation as practiced in a variety of settings such as industrial marketing relations (e.g. negotiations in sales/procurement) or within companies (e.g. negotiation on budgets). A basic premise is that while students need analytical skills in order to develop optimal solutions, a broad array of negotiation skills is needed in order for these solutions to be accepted and implemented. Yet, even though we often negotiate, many students have limited knowledge about appropriate strategies and tactics for effective negotiation. The course will introduce key theories and provide practical examples highlighting the components of effective negotiations. In addition, the course will teach students to analyze their own behavior in negotiations. The course structure is experiential and problem-based, combining lectures, class discussion, talks of external guest speakers, and the practice of negotiations. Through analysis of case studies and readings, students will acquire theoretical knowledge. Through participation in problem-based negotiation exercises, students will have the opportunity to improve their skills and to experiment with a variety of negotiating strategies and tactics. Additional insights will be stimulated by the talks of external negotiation experts (e.g. procurement and sales experts).

Contents

The students will find answers to the following fundamental questions of negotiation theory and practice:

• What are key features of negotiations?
• What are different types and contexts of negotiations?
• What are the phases of negotiation processes?
• Which theoretical approaches add to a theory of negotiation?
• How can game theory and behavioral economics help to understand or to predict negotiation processes?
• What are cognitive (mental) errors that often influence negotiations, and how can they be mitigated?
• What characterizes distributive and integrative negotiation approaches?
• What makes an effective negotiator?
• Which factors should be considered when planning and preparing for negotiations?
• What are the pros and cons of different negotiation tactics?
• What are the typical barriers to an agreement and how to deal with them?

Selected literature

• Fisher, Roger; Ury, William (2011): Getting to yes. Third edition. Penguin, New York.
• Lewicki, Roy; Barry, Bruce; Saunders, David (2010): Negotiation. Sixth Edition, McGraw-Hill, Boston.
• Nalebuff, Barry J., Brandenburger, Adam, & Maulana, Agus (1996).:Co-opetition. London: HarperCollinsBusiness.
• Raiffa, Howard (2007): Negotiation analysis. Belknap Press of Harvard Univ. Press, Cambridge, Mass.

Previous guest lecturers