Buford and Silana are negotiating a contract with three issues: Warranty, Model, and Volume. Buford and Silana have to decide which of three options to choose on each issue, but the options are worth different amounts to them, as shown here:

Net Benefits for Buford Warranty: 1 Yr = $500; 2 Yr = $300; 5 Yr = $200 Model: M1 = $50; M2 = $60; M3 = $70 Volume: 1000 = $100; 2000 = $200; 3000 = $300

Net Benefits for Silana Warranty: 1 Yr = $100; 2 Yr = $200; 5 Yr = $300 Model: M1 = $50; M2 = $60; M3 = $70 Volume: 1000 = $500; 2000 = $300; 3000 = $200

Buford and Silana can each make offers with other parties that are worth net benefits of $600. Should they make a deal with each other? If so, what would be the terms of an integrative agreement (specify warranty, model, volume) that gets all the money "off the table"?

Answer rating: 100% (QA)

To determine whether Buford and Silana should make a deal with each other and the terms of an integr... View the full answer