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Multiparty Negotiations:Coalitions and Groups

In Chapter 8, we focused on the social context of negotiation and developed two major
themes: (1) that negotiation dynamics become more complex when there is an ongoing
relationship between the parties, and (2) that negotiation dynamics also become more
complex when negotiators represent other parties in the deliberations. We specifically
considered negotiators as agents representing the interests of others at the table, and
the dynamics between agents and their constituents. In this chapter, we extend the
analysis to other multiparty negotiation situations:
1. Situations when there are multiple parties who are negotiating with one another but
ultimately attempting to achieve their own individual objectives. We will look at
how parties ally into coalitions to achieve these objectives.
2. Situations when there are multiple parties who are negotiating with one another and
ultimately attempting to adhieve a collective or group consensus. We will discuss
this as a process of group decision making from a negotiation perspective.

NEGOTIATIONS WITH MORE THAN TWO NEGOTIATORS
As we discussed earlier, a negotiation situation becomes more complex when
more negotiators are added to it (see Figure 9.1). For example, let's consider a student
who sets out to sell a used stereo system. He posts a notice on the bulletin board in the
student union, indicating the details about the stereo and a suggested price. Two inter-
ested students call. Let us now assume three different variations on this situation:
In the first case, the two potential buyers are roommates. One roommate
has agreed that she will do the talking and try to negotiate the best deal with the
seller, while the other one stays silent but comes along for moral support.
In the second case, the two buyers do not know each other. The seller
can sell to the first one who calls, sell to the first one who shows up at his
apartment, or ask the two to come at the same time and try to play the two off
against each other. In this case, each buyer's offer on the stereo becomes the
seller's Alternative (Chapter 3) for the stereo (assuming the alternative offer is
an acceptable one), and the seller can, in effect, auction the stereo off to the
highest bidder.

In the third case, the two buyers show up at the door together, exchange
greetings, and discover that they live in the same dormitory. They also discover
that they were both asked to come at the same time by the seller and figure out#p#分頁標題#e#
that the seller is probably trying tohttp://www.400190.com/Essay_Writing/ get them to bid against each other. So they
agree to make a lowball offer on the stereo and not increase their bids by more
than a few dollars. They hope that if they try to hold the price down but offer to
pay cash on the spot, they can get the seller to get rid of the stereo now.
We now have three different variations on a three-party negotiation. The first
case resembles the typical agency relationship situation we described Chapter 8. One
buyer is representing the other, and we have two negotiations going on: one between
the buyer and the seller, and one between the buyer and her roommate. In the second
case, the seller is conducting a sequenced series of one-on-one transactions; he gets
one to bid, then goes to the other with the bid and asks her to raise it; thus, he is using
each potential buyer as his Alternative while he tries to get them to compete in an auc-
tion. The seller's success in this case relies heavily on the buyers' unwillingness or in-
ability to communicate with each other. In the third case, the seller is about to be un-
wittingly compromised by the buyers. Their discovery of the seller's intent to get them
to compete has created the motivation and the opportunity for them to coalesce in
order to both hold the price down and punish the seller for his efforts at trying to struc-
ture the deal as an auction. If the buyers are successful, they may be able to get the
stereo at a bargain price.

In the next section, we explore this third situation-what
happens when the par-
ties form coalitions or subgroups in order to strengthen their bargaining position
through collective action.
NEGOTIATING COALITIONS
There are a number of ways to define a coalition. Pearce, Stevenson, and Porter
(1986) suggest that a coalition is
An interacting group of individuals. We will exclude people who may want the
same thing but do not specifically interact (the second example, above). We
will expect that coalition members will communicate with each other about
pertinent issues.
Deliberately contracted. In a coalition, the parties are intentionally corning to-
gether for some specific purpose.
Independent of the formal structure. A coalition is not necessarily a formal
group, such as a department, team, or task force (whose members may unite be-
cause they have been created by design in the organization), although a depart-
ment or team could informally also bond together around a common purpose or
objective. But the origins of a coalition are informal, based on the interests of
the parties rather than created by formal organizational designation.
Lacking their own internal formal structure. Since coalitions lack formal orga-#p#分頁標題#e#
nizational designation and legitimacy, they also lack any internal hierarchy or
formal legitimate authority. ~nfollhaleadership and roles may evolve as the
coalition persists and grows, however.
Consisting of mutually perceived membership. Usually, most people in a coali-
tion are aware of those who belong and those who do not belong.
lssue oriented. As Pearce notes, "Coalitions are formed to advance the pur-
poses of their members, and when members cease to interact concerning those
purposes or issues, they are considered to cease to exist as a coalition" (p. 102).
Focusing on a goal or goals external to the coalition. For the most part, coali-
tions form to exert influence on a person or body external to the coalition. This
may be another individual or group inside their organization (but who is not in
the coalition), or an individual or group outside their organization.
Requiring concerted member action. Finally, a coalition requires the commit-
ment of the members to collectively focus their action on an intended target.
The members may act in concert or may focus on refraining from action (e.g.,
an organized protest of some form), but the objective is to achieve collectively
what they cannot accomplish individually.
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