Office Rental Negotiation

Teacher Materials

Your customized Office Rental Negotiation is a 4-issue negotiation simulation with short issue descriptions.

You chose to use a 'scored' version of this negotiation simulation. In a scorable negotiation simulation, all of the issues and interests have a list of options and associated point values.

There are two advantages associated with using a scorable simulation. First, scorable simulations facilitate comparisons. Participants can compare their outcomes and, by doing so, may be more curious about how one classmate reached such a good (or bad) deal. Second, scorable simulations help instructors illustrate the difference between distributive issues—where the parties have equal, but opposite, preferences—and log-rolling issues—where the opposing preferences are not equal to one another. Scorable simulations make it easier to learn how to create and claim value by bundling issues together.

Issues

Negotiation simulations vary in the extent to which negotiators can create and claim value using log-rolling, compatible, and distributive issues.

Log-rolling Issues

Log-rolling issues are issues where the two parties want different outcomes, but one party places more value in the outcome than the other. The way to successfully negotiate log-rolling issues is to 'bundle' issues that one party values highly with issues that the other party values highly. This bundling process allows people to simultaneously create value with and claim value from their counterpart.

Compatible Issues

Compatible issues are issues where both parties want the same outcome. The only way to be successful is to create value with your counterpart.

Distributive Issues

Distributive issues are issues where the two parties interests are directly opposed. The only way to successfully negotiate a distributive issue is by taking value from your counterpart.

Best alternatives to a negotiated agreement (BATNA)

Best alternatives to a negotiate agreement (BATNAs) describe what each party will do if they are unable to reach a deal. BATNAs determine the reservation value of the parties, i.e., the value that a negotiated outcome must exceed before a party should rationally accept the deal.

Giving both parties relatively weak BATNAs will create a positive zone of possible agreement, a situation that will reveal the power of first offers.

License

Permission is hereby granted, free of charge, to copy and distribute this customized simulation in any medium or format for teaching or research purposes. You are prohibited from reselling the simulation or collecting any money from its distribution.

Please give appropriate credit when using this simulation. I ask that you cite both my paper on custom negotiations and the specific case. These citations are

Eisenkraft, Noah (2017). CustomNegotiations.org: A free resource for creating custom negotiation simulations. Negotiation Journal, 33, 239-253.
Eisenkraft, Noah (2016). "Office Rental Negotiation", Custom Negotiations, https://customnegotiations.org/

The simulation is provided "as is" without warranty of any kind, express or implied. In no event shall the authors or copyright holders be liable for any claim arising from or in connection with the use of this simulation.

Save and use the following URL if you'd like to generate this simulation again in the future:

https://customnegotiations.org/office-rental.php?i=3&il=1&ic=1&b1=2&b2=2&%20s=1&a=1&r=1476218081&cb=&cf=&w=Jacksonville&m=1730&v=0

Teacher Materials Scoring Summary

The P1 column lists the Tenant's points.
The P2 column lists the Landlord's points.
The ★s indicate the option that maximizes value creation (not applicable to distributive issues).'

Office Cleaning Policy
A compatible issue where both parties want the same thing.
   
OptionsP1P2 
A.No cleanings 1,2501,250
B.One deep clean per year 1,1751,175  
C.Quarterly cleanings 1,1001,100  
D.Monthly cleanings 1,0251,025  
E.Biweeky cleanings 950950  
Security Deposit
A log-rolling issue that the landlord (P2) values more.
   
OptionsP1P2 
A.Zero dollars 1,300150  
B.Two weeks rent 1,125550  
C.One month's rent 950950  
D.Six weeks rent 7751,350  
E.Two months rent 6001,750
Sublet Policy
A log-rolling issue that the tenant (P1) values more.
   
OptionsP1P2 
A.No sublets allowed 501,200  
B.Sublets allowed with two months notice 4501,025  
C.Sublets allowed with one month's notice 850850  
D.Sublets allowed with one week's notice 1,250675  
E.Sublets allowed with no advance notice 1,650500
Lease Length
A distributive issue with no value creation opportunity.
   
OptionsP1P2 
A.Month-to-month 6501,950  
B.Three months 9751,625  
C.Six months 1,3001,300  
D.One year 1,625975  
E.Two years 1,950650