Negotiation: Federal Science Fund Role:Turbo What issues are most important to you? (list in order of importance) 1. Funds for R&D 2. Ability to contribute value of each consortium 3. Future relationship with other firms What is your BATNA? Reservation Price? Target? My BATNA is $0 if the other two firms want to cooperate with each other and kick me out. My target is to cooperate with Stockman and get the fund of $440,000 and split the fund between us two. Since Stockman contributes more value than me but I have more need of money than him, I hope to divide the fund half and half and each of us gets $220,000.
What are your sources of power? My source of power is that our firm is oldest and well established with mid-sized staff and a moderately sized laboratory. Turbo concentrates in cancer-related technologies and has a reputation for steady output and reliable products. Turbo contributes more value than United. Moreover, if stockman and I cooperate, we could get the highest fund that is $440,000. What issues are most important to your negotiating partner? (list in order of importance) 1. Funds for R&D 2.
Ability to contribute value of each consortium 3. Future relationship with other firms What is your negotiating partner’s BATNA? Reservation Price? Target? Their BATNA is also $0 and if two other firms cooperate with other. Their target may also be to cooperate with one firm and split the money between two. I think stockman’s strategy will be the same as me since we are two most powerful firms among us three. What are your negotiating partner’s sources of power? Stockman concentrates in basic research, producing a wide variety of products.
Stockman has the greatest number of scientists and the largest laboratory. United industry is the youngest company, with the smallest staff and lab. It is known for innovative technological breakthrough. What is your opening move/first strategy? Other important information? My strategy will be I want to cooperate with Stockman and kick United out. Then I could split the money with Stockman. If Stockman does not cooperate with me then I will talk with united and ask to share $200,000. If still not working, I hope to three of us do this project together.
