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Verbano negotiations. Rodolfo Soncini Sessa. Upstream: index value + minister’s constraint. BATNA: 45. Best Alternative To Negotiated Agreement. Best Alternative To Negotiated Agreement. Downst: index value + minister’s constraint. BATNA: 30. Upstr. Zopa. Zopa. Downst.
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Verbano negotiations Rodolfo Soncini Sessa
Upstream: indexvalue + minister’s constraint BATNA: 45 Best Alternative To Negotiated Agreement
Upstr. Zopa Zopa Downst.
Compromise analysis 65 70 75 80 Batna Batna 0.15 45 30 0.16 0.17 0.18 61 30 0.19 58 35 0.2 55 40 0.21 52 45 77 30 0.22 49 50 74 35 0.23 46 55 71 40 0.24 68 45 93 30 0.25 65 50 90 35 0.26 62 55 87 40 0.27 59 60 84 45 0.28 56 65 81 50 0.29 53 70 78 55 0.3 50 75 75 60 0.31 47 80 72 65 Downstr. 0.32 69 70 0.33 66 75 Upstream Up/Down Pareto frontier
Compromise analysis 65 70 75 80 0.15 45 30 0.16 0.17 0.18 61 30 Largest pie: 141 0.19 58 35 0.2 55 40 0.21 52 45 77 30 0.22 49 50 74 35 0.23 46 55 71 40 0.24 68 45 93 30 0.25 65 50 90 35 0.26 62 55 87 40 0.27 59 60 84 45 0.28 56 65 81 50 0.29 53 70 78 55 0.3 50 75 75 60 0.31 47 80 72 65 Downstr. 0.32 69 70 0.33 66 75 Total value Upstream Up/Down Pareto frontier enlarge the pie!
Split the pie Pareto front. Upstr. Downstr. Total Upstr. Downstr. 93 30 123 90 35 125 87 40 127 84 45 129 81 50 131 83 48 78 55 133 80 53 75 60 135 76 59 72 65 137 74 63 69 70 139 72 67 70 71 66 75 141 ? ? 47 80 127
Compromise analysis 65 70 75 80 0.15 45 30 0.16 0.17 0.18 61 30 Best compromise. 0.19 58 35 0.2 55 40 0.21 52 45 77 30 0.22 49 50 74 35 0.23 46 55 71 40 0.24 68 45 93 30 0.25 65 50 90 35 0.26 62 55 87 40 0.27 59 60 84 45 0.28 56 65 81 50 0.29 53 70 78 55 0.3 50 75 75 60 0.31 47 80 72 65 Downstr. 0.32 69 70 0.33 66 75 Upstream Up/Down Pareto frontier
Split the pie Pareto front. Upstr. Downstr. Total Upstr. Downstr. 93 30 123 90 35 125 87 40 127 84 45 129 81 50 131 83 48 78 55 133 80 53 75 60 135 76 59 72 65 137 74 63 69 70 139 72 67 70 71 66 75 141 ? ? 47 80 127 How to split the pie? Enlarge the actions (options).
Actions suitable to split the pie Switzerland: pays for the excavation Italy: pays for flood gate in Locarno With this actions value tables must be recomputed
Compromise analysis 65 70 75 80 Batna Batna 0.15 45 30 0.16 0.17 0.18 61 30 Nash point 0.19 58 35 0.2 55 40 0.21 52 45 77 30 0.22 49 50 74 35 0.23 46 55 71 40 0.24 68 45 93 30 0.25 65 50 90 35 0.26 62 55 87 40 0.27 59 60 84 45 0.28 56 65 81 50 0.29 53 70 78 55 0.3 50 75 75 60 0.31 47 80 72 65 Downstr. 0.32 69 70 0.33 66 75 Upstream Up/Down Pareto frontier
Have you shown your table to your counterpart? To adopt aFull Open Truthful Exchange(FOTE) is of great advantage in negotiations But can you trust the table of your counterpart?
Obviously not. Who guarantees that they correctly evaluate the effects and that the figures were not created in order to cheat you? • But the adoption of FOTE is of great advantage! • We need a procedure to build up the tables in a participatory way. • We need a PROCEDURE and a MODSS PIP + MODSS