Negotiation arithmetic: adding and subtracting issues and parties

1983 ◽  
Vol 37 (2) ◽  
pp. 281-316 ◽  
Author(s):  
James K. Sebenius

Students of international negotiations often examine strategic interactions among a given set of parties dealing with a specified group of issues. The issues and parties themselves are often choice variables whose ultimate configuration can have decisive effects on a bargain's outcome. Using a variety of international cases, I investigate the properties of several classes of moves that are intended to alter the issues and parties of an original negotiation. A unified approach to the analysis of such situations suggests numerous distinct means by which the “addition” or “subtraction” of issues can yield one-sided gains to the use of power; can yield joint gains that create or enhance a zone of possible agreement; and can reduce or destroy a zone of possible agreement. The effects of adding or subtracting parties are similarly analyzed. However, unintended complexity, unforeseen interrelationships, organizational considerations, transactions costs, and informational requirements may alter the analysis of such moves.

Author(s):  
Murali Patibandla

It develops a simple theory of Cournot strategic interactions between firms as basic framework and discusses behaviour of firms from dimensions of market structure, technology, scale economies, and value-chains (subcontracting). It demonstrates how large firms derived monopoly power in the product markets and monopsony power in the input markets. This, in turn, made them inward oriented in search of monopoly power in the Pre-reforms era. On the other hand, small and medium scale firms faced highly competitive conditions and high transactions costs in the domestic markets especially in the sub-contracting linkages with large firms. This, in turn, drove relatively efficient small and medium firms to exports where they are price takers facing lesser degree of transaction costs. The chapter also traces how exporting small and medium firms realized efficiency in production processes.


2001 ◽  
Vol 20 (2) ◽  
pp. 159-169 ◽  
Author(s):  
M. Ganesh Madhan ◽  
P. R. Vaya ◽  
N. Gunasekaran

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