Renee Te Kanawa" involves a salary negotiation between an opera singer and an opera company.

Renee Te Kanawa is a distinguished older soprano who has not had a lead role in two years. The Lyceum Opera Company has a production of "La Traviata" opening in three weeks, and the soprano who had been engaged to sing the title role has developed a condition requiring surgery before the performance.

The Lyceum is eager to hire Renee, and the trustees have authorized the business manager to offer up to $45,000 for the lead. Naturally, the Lyceum, which is a not-for-profit organization, would like the salary to be lower, if possible. The original soprano hired for the lead was to have been paid $30,000, and the rather inexperienced secondary soprano is being paid $14,000. (Industry practice is that lead roles receive about twice the amount received by secondary role singers).

Four years ago, at the height of her career, Renee received $22,000 for the lead role, but inflation and an increase in opera's popularity have nearly doubled the salary scale since then. Renee desperately wants this role, which could give her a chance at a forthcoming television special. She would be willing to sing the part for nothing, except for the impact on future engagements and reputation. Her salaries for secondary roles over the last two years have ranged from $10,000 to $18,000; more than a year ago she received $12,500 for singing the secondary role in "La Traviata" at the Lyceum. Last year, an inexperienced soprano who sang the lead role is rumored to have been paid more than $24,000.

Questions:

1) Which of these parties will seek to claim or create value?

2) Why have you made your choice?

3) How will each party attempt to assert their desire?