Negotiation Simulation: FOR COURSES IN:

Negotiation

OPEQ Economics

Developed by:
Negotiation Simulation: OPEQ

This multi-player simulation immerses students
in the complex world of oligopical oil pricing.
As member nations of “OPEQ,” teams of students are tasked
with setting petroleum production levels with competing
countries in order to maximize their cumulative profits.
The simulation allows students to explore the dynamics
of cartels and competition, negotiation, best response,
the Nash equilibrium, and a variety of other negotiation
and economic principles.

Students enter production levels, communicate with other teams, and view results from the Gameboard screen.

TEAM PLAY
Students are organized into small teams, each representing
a different fictional country (Alba, Batia, or Capita).
There are 3 countries in a world, and there may be
several autonomous worlds in play depending on the
class size. Teams play in physical isolation from their
competitors, working to set the ideal production levels
for each round. The rounds are timed, and the 3 teams
have an opportunity to communicate with each other in
designated rounds, either through the simulation chat
window or a face-to-face meeting.

News updates inform students of any new activities

or conditions for each round.

hbsp.harvard.edu
COOPERATION AND COMPETITION
The simulation gives students critical insight into the mechanics of cooperation.
As in many real-world contexts, cooperation in the Negotiation Simulation: OPEQ
has great benefits. Individuals or individual groups have incentives to defect,
however, as they struggle to maximize their own profits amid limited information
and an increasingly complex market. Students learn how the dynamics of
communication, team monitoring, end-game effects, trust, and inequality affect
cooperation. The simulation demonstrates how managing cooperative relationships
is a difficult, but critical, managerial challenge.

The Demand Curve and Profit Analysis charts plot country and world results by year.

GAME THEORY SETUP AND CUSTOMIZATION

This simulation can also be used to
teach students game theory. The
teams make decisions as part of an
oligopoly market structure. Students
should compute best-response func-
tions and the Nash equilibrium. The
repeated nature of the game can also
be used to discuss backward induction.
The simulation has easy-to-use
defaults for first-time users, but it is
also highly customizable. Instructors
can customize simulation length,
the number of players per team,
the number of rounds and round
duration, production variance, the
occurrence of online and face-
to-face communications, and
when an automated producer will
unexpectedly enter the market.

ADMINISTRATION TOOLS ON NEXT PAGE ➜

Administration Tools for Faculty

A comprehensive Teaching Note covers

MC185330314
key learning objectives, including:
■■  xplore oligopoly market struc-
E
tures with a focus on game theory,

Product #WH0002
the Nash equilibrium, and best-
response functions.

■■ Illustrate the dynamics of coopera-

tion and competition, as well as the

Printed on recycled paper.

tension between self-interest and
maximizing cumulative profits.

■■  xercise strategic negotiating and

E
communication skills to achieve
optimal results in a competitive
environment.

■■  bserve the fluctuations of price

O
and profit in a competitive world The Administrator Gameboard is constantly refreshed with student results by country,
year, and world.
marketplace.

INSTRUCTOR DEBRIEF
Negotiation Simulation: OPEQ features
World Detail, World Comparison, and
Leaderboard debrief screens. The
World Comparison screen shows a
year-by-year world profit comparison.
The Leaderboard screen displays the
most profitable countries and worlds.
The majority of class discussion is
typically centered on the World Detail
screen, however, because it can be
tailored to highlight a variety of
interesting results.
TEACHING MATERIALS
A detailed Teaching Note reduces
the time required for faculty to
learn the simulation.
SUPPORTING VIDEOS
Six videos are available to help in-
structors understand, prepare for, and
debrief the simulation. The videos fea-
ture screen captures of the simulation,
footage of in-class simulation play, and
commentary from the author. The
videos include OPEQ Introduction, How
to Play, Game Configuration, Play and
Debrief, Running the Game, Debriefing
the Game, and Microeconomics.
DYNAMIC DEBRIEF SLIDES
Instructors can download presentation-
ready debrief slides of class results.

Product #WH0002 | Multi-player: 3+ roles | Seat Time: 60 minutes | By Maurice Schweitzer, The Wharton School, University of Pennsylvania

PREVIEW AND FREE TRIAL ACCESS ALSO AVAILABLE

Visit hbsp.harvard.edu
A Free Trial allows full access to the
entire simulation and is available to
Premium Educators on our web site.
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Premium Educator status offers access
to course planning tools, Teaching Notes,
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Free Trials, and special student pricing.
■■Leadership and Team Simulation:
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