Dispute Resolution Research Center, Kellogg School of Management

This exercise is an iterative prisoner’s dilemma exercise set in the context of the decision of whether or not to engage in negative advertising. It is unusual in that face-to-face negotiation is only one component of the exercise. Most of the “action” occurs in the simultaneous decisions that the parties make. It can be done in pairs or groups.

Preparation: 10 minutes
Negotiation: 45 minutes

Diamond Bidding Game
Author: J. Keith Murnighan
Source: DRRC

This is an asymmetric prisoner’s dilemma game for two individuals or two parties. It is an excellent exercise to show how unequal payoff distributions, when known, can throw a wrench into potentially cooperative relations. Diamond Bidding Game works well as a follow-up to Gas Station Game.

Preparation: 10 minutes
Negotiation: 45 minutes

Everyone Has a Number Market
Author: J. Keith Murnighan
Source: DRRC

This market exercise is for medium or large groups (i.e., 16 or more). Participants all receive private information that determines the kinds of strategies that are beneficial to them within the market, where they must negotiate in dyads but can move from one potential partner to another. The exercise moves from market interactions to debriefings to additional market interactions and debriefings. Issues raised include the value of information and the importance of nonverbal cues.

Preparation: 5 minutes
Negotiation: 10-15 minutes

Executive Decision Making Game
Author: J. Keith Murnighan
Source: DRRC

This is a multi-party (typically 4 or 5) veto game, where one party has veto power and the other parties must either band together to protect themselves or try to deal individually with the veto player. A simple but compelling analog to the formation of unions in the face of harsh treatment by an authority, this exercise generates a wide range of outcomes from open revolt to intense internal competition.

Preparation: 10 minutes
Negotiation: 25 minutes

Game of 4-3-2
Author: J. Keith Murnighan
Source: DRRC

This is a three-party coalition game, with three variations. It shows how subtle changes in the structure of the situation have marked impacts on the negotiation process. Discussion highlights the strategies to be considered in choosing between individually beneficial two-party agreements and collectively beneficial three-party agreements.

Time: Three 25 minute rounds

Game of Envelopes and Money
Author: J. Keith Murnighan
Source: DRRC

This is a large group social dilemma game where the parties can win or, more likely, lose real money. Based on an exercise described by Dave Messick and Christel Rutte, it shows how difficult cooperation is for large groups of people who cannot interact to boost commitment.

Time: Takes 5 min. to play and additional time to tabulate results.

Gas Station Game
Author: J. Keith Murnighan
Source: DRRC

This is a prisoner's dilemma game for two individuals or two parties. It revolves around repeated price-setting choices by the owners of two gasoline stations. It moves from no communication, to communication, to a known endpoint looming in the near future. The exercise shows the conflicts people have in making basic cooperative or non cooperative choices and raises issues of trust, intergroup, and intragroup coordination.

Preparation: 10 minutes
Negotiation: 30-40 minutes

Highest Number Game
Author: J. Keith Murnighan
Source: DRRC

This is a short group exercise that shows negotiating strategies can rarely maximize all possible outcomes, and that low probability/high outcome events should not be expected. No preparation necessary.

Exercise: 5-10 minutes

Information Game
Author: J. Keith Murnighan
Source: DRRC

This is a two-party negotiation where the individuals have different information and different outcome possibilities. It shows the value of information, the possibility that truthful revelations will not be believed, and the likelihood that relevant information will be withheld to protect one party's interests. Note: The teaching notes for this exercise have been revised.

Preparation: 10 minutes
Negotiation: 25 minutes

Multiple Items Game
Author: J. Keith Murnighan
Source: DRRC

These are two two-party negotiations, quantitatively scorable, over three and five issues. The first negotiation displays, quite easily, the value of tradeoffs and the true meaning of win-win agreements. The second negotiation adds a compatible issue (where participants preferences are identical), which: 1) increases the complexity of the negotiation due to additional issues, and 2) allows people to sharpen their abilities to share information effectively and discover valuable tradeoffs.

Preparation: 10 minutes
Negotiation: 25 minutes each

New Ultimatum Game
Author: J. Keith Murnighan
Source: DRRC

This is a market exercise for medium or large groups (i.e., 16 or more) that is played twice with discussion between and after the two plays. One party is given information and power; the other party must deal with a position of relative weakness. Discussion raises issues of fairness, the use of strategic power, equality, and justice.

Preparation: 5-10 minutes
Negotiation: 10 minutes each

Silent Bargaining Quiz
Author: J. Keith Murnighan
Source: DRRC

This is a series of "quiz" questions with a scoring rule that "The right answer is the answer that everyone else provided." The quiz forces people to consider what others might do. Discussion highlights how the prominence of particular solutions can help determine a negotiation outcome. This exercise is based on stories told by Thomas Schelling in his book, The Strategy of Conflict, 1960.

Quiz takes about 10 minutes.

Trust Game
Author: J. Keith Murnighan
Source: DRRC

This exercise illustrates the difference between rational choice theory and game theory predictions of behavior in a situation of trust and actual behavior. People are more trusting than rational theory would predict.

Preparation: 5-10 minutes
Negotiation: 45 minutes

Ultimatum Game
Author: J. Keith Murnighan
Source: DRRC

Preparation: 5-10 minutes
Negotiation: 10 minutes each