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Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly.

Two-party contract negotiation between a computer consultant and a school district representative at an apparent impasse over different expectations over cost of services. A school district and a computer consultant are negotiating a potential contract for repair of the school district's failed computer network. Both parties are eager to work with each other: the consultant's qualifications appear perfect for the school district's needs, and the school district would help the consultant connect with additional governmental clients. After a fair amount of negotiation, however, the parties find themselves at an impasse: the consultant's bid (which the consultant feels is very low) is considerably higher than the school's budget for this project. The consultant and a school representative have agreed to meet one last time in an effort to salvage the deal. This simulation happens to involve a consulting contract, but the negotiation lessons are generic. The exercise can be used simply to illustrate the importance of the creative, option-generating aspect of negotiation. More importantly, it can also be used as the principal vehicle for presenting integrative theory more broadly.

Three independent organizations, "A," "B" and "C," have sent representatives to a three-way negotiation. The representatives have learned that there are benefits to working together. If all three groups reach an agreement, benefits totaling 121 points will be split three ways (to be determined by the participants). If only two of the organizations reach an agreement, the total benefits to be split will be less than 121 (varying, depending on which two organizations join together) and the third party will be left with nothing.

General Instructions for Dirty Stuff II Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Instructions for the Agency Negotiator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Advice to the Negotiator for the Environmental Coalition Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Instructions for the Consumer Negotiator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Instructions for the Industrial Negotiator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Instructions for the Labor Negotiator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

Confidential Instructors for the Facilitator Six-person, multi-issue facilitated negotiation among industry, environmental, consumer/community, labor, and government representatives to develop single-text regulation of toxic industrial by-product. Dirty Stuff is an industrial by-product of a large number of industrial processes that has recently found to have harmful health side-effects. A first meeting was convened at which a representative from environmental organizations, labor unions, industry groups, community groups and consumer groups would attend in order to discuss how Dirty Stuff is to be regulated. This meeting ended abruptly and in a highly emotional and hostile fashion - a fact which has become reported in the press. A second meeting has been convened and the various factions have agreed to enlist the help of a facilitator. The goal of the upcoming second meeting is to revise the proposed rule regarding the production and use of Dirty Stuff. This will be published in The Federal Register.

This note, which is introductory in nature, provides a classification scheme for some of the more common examples of price discrimination. For each case that is discussed, the note characterizes the appropriate market segments, the alternative product "versions," and the differences in the firm's economics from one version to another.

Examines the economic tradeoffs affecting a firm's decision to offer one or more versions of a product to a segmented market. Also presents some arguments for and against product variety.

An introduction to sampling and statistical inference that covers the main concepts (confidence intervals, tests of statistical significance, choice of sample size) that are needed in making inferences about a population mean or percent. Includes discussion of problems of sampling in the real world where response bias and nonrepresentativeness violate the principles on which statistical inference is based.

Examines the important economic considerations affecting a firm's price-quantity decision for a product. Begins with a discussion of the appropriate decision criterion. Next, it motivates the concept of a demand curve for a product and defines demand elasticity. Marginal analysis is used to establish the following necessary condition for optimal price and quantity: marginal revenue must equal marginal cost. Price-quantity determination in the presence of a resource constraint and competition is also discussed.

An exercise with data that allows a discussion of regression analysis as a tool for forecasting and understanding structure.

The sales manager and controller have to decide on a price for a textile that lost significant market share as a result of a recent price increase. Information on manufacturing costs and on the pricing behavior of Beauregard and its only competitor are available for analysis. The case provides an opportunity to practice contribution analysis, considering fixed and variable costs as reported in a typical cost report. Also tests the students' ability to recognize the need to consider the situation from the competitor's point of view. Finally, it poses a prisoner's dilemma for the two firms where each would prefer a set of prices unfavorable to the other so that prices are likely either to be unstable or to be stable at a suboptimal level for both parties. The class can close with students attempting to devise a pricing strategy that would reach the optimal level.

Spreadsheet supplement for case 191-058.

Spreadsheet supplement for case 191-065.

A rewritten version of an old case that updates the dates and prices and simplifies the economics. The issue is still one of determining a suitable inventory of wood for the mill to last through the winter.

A department general manager has to decide whether or not to add a lightweight compressor to the line, what price to charge, and what volume to produce. The analysis requires maximizing contribution in a situation where one factor is constrained. As such, it takes into account opportunity costs and shadow prices as well as fixed and variable costs, demand curve analysis, and sunk costs. Also invites discussion about the proper measurement, offering departmental profits and return on sales as candidates.