• Multi-parties Negotiation

Case Description
• 3 corporations are qualified Federated Science Funds.
• Federated Science Funds will only make a contract with 2 suppliers
work jointly.
• To bid for the business, each company has to make substantial
investment .
• An investment of a company will lose if they can’t be a member of
the alliance.
• If you are able to make this alliance, you can allocate the money with
your partner based on agreement.
• Any violation toward the rules will be disqualified from negotiation.
• An alliance is considered valid if:
– No corporation receives same share of money.
– No corporation (within an alliance) receives nothing.
– No further contact outside the negotiation room.
 Negotiation room A
Mechanism

negotiation room
room B

room C

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 Agents Involved in Allocated Time
Ordering
Negotiation (minutes)
Group 1 & Group 2
3
Group 4 & Group 5
Group 1 & Group 3
1st Round 3
Group 4 & Group 6
Group 2 & Group 3
3
Group 5 & Group 6
Group 1 & Group 2
3
Group 4 & Group 5
Group 1 & Group 3
2nd Round 3
Group 4 & Group 6
Group 2 & Group 3
3
Group 5 & Group 6
Group 1 & Group 2
3
Group 4 & Group 5
Group 1 & Group 3
3rd Round 3
Group 4 & Group 6
Group 2 & Group 3
3
Group 5 & Group 6
 After Negotiation
• Each group is given 5 minutes to decide their partner
for this contract.
• Once decided, you must write in a paper as follow:
– your partner,
– share of funds for you, &
– share of funds for your partner.
• Collect your paper to the session leader & return to
main class.
Multi-parties Negotiation
6 Party Talks
 Why a Coalition?
• Usually weaker parties join together to fight a
stronger party

• A strong party may try to create a coalition

with a weaker party to create divisiveness
 Forming coalitions
• Requires a negotiation to form a coalition

• Each party has to protect its own interests in the

process,
– but parties have to be somewhat more open
about them to form a viable coalition

• The parties forming the coalitions not only consider

– the leverage to be gained against the group
– but also the amount of leverage the party has
within the coalition
 Coalitions
• Pool resources and exert greater influence
• Increase your power
• Can shift (change) over time. – Is it stable?
• Order of joining / inviting is important
• Decision making is complicated