Turner is looking to change publishers and is entertaining the idea of signing a contract with Bestbooks. Paige abhors the business side of the literary world and has asked an agent to hammer out a deal with you, the senior representative from Bestbooks. Your experience tells you that the negotiation between you and Paige's agent will hinge on the following eight issues: 1. Royalties (percentage per sale) 2. Contract signing bonus 3. Number of print runs for the book 4. Number of weeks that Paige has to promote the book 5. Number of books 6. Advance 7. Number of countries where the book will be sold 8. Number of book clubs that will adopt the book The president of Bestbooks has stated that it would be great to have the popular Paige join Bestbooks' list of authors, but cautioned that Paige was to be treated like any other author when negotiating a contract. You realize that a favorable contract for Bestbooks would involve giving as little as possible with respect to the abovementioned eight issues. It is imperative that you negotiate a good deal for Bestbooks; the last senior representative was released for being too generous when signing on new authors. You can evaluate your success during the negotiation process with Paige's lawyer by using the success table on the following page. You will notice that the issues differ in point values; consider the issues with the higher points to be more important to Bestbooks. Issues that are concerned with selling the book (number of print runs for the book, number of weeks that Paige promotes the book, number of countries where the book will be distributed, number of book clubs that will adopt the book) are quite straightforward: the more the better! Recently authors have started to act like sports stars and have been trying to leverage publishers against each other by changing publishers frequently. Bestbooks has resigned itself to this trend and would rather sign new, high profile writers than try to sign writers to several books (of course in the unlikely event that you could sign Paige to more, that is fine). As far as the advance is concerned, you don't understand why you should agree to both a signing bonus and an advance. To not give a signing bonus would be an insult, so you prefer to resist an advance. Finally, the strictly monetary issues (royalties, signing bonus) come straight from company profits and with the increased competitiveness in the publishing business you need to be as stingy as you can. One strategic option available to you involves the issue of number of countries where the book will be sold. The point values show that you prefer more countries to fewer in this negotiation, but this is not the case for all books - sometimes the payoff from multinational sales is outweighed

2 by the difficult effort and significant expense involved in marketing a book overseas. Thus, if the Paige Turner agent was led to believe that publishers view Paige's work as having limited international potential, then you could possibly extract a concession from Paige's agent in exchange for overcoming your own "reluctance" to market the book in a larger number of countries. Your goal is to obtain the highest possible score. You will have 30 minutes to negotiate a contract and it is quite probable that the president of Bestbooks would quite unhappy if no contract results from the negotiations

Term in Contract Points Royalties 15% 6000 13% 5000 10% 4000 7% 3000 5% 2000 Contract signing bonus $50,000 5000 40,000 4000 30,000 3000 20,000 2000 10,000 1000 Number of print runs for 5 3500 the book 4 3000 3 2500 2 2000 1 1500 Number of weeks that Paige 35 100 has to promote the book 30 200 25 300 20 400 15 500 Number of books 6 500 5 1000 4 1500 3 2000 2 2500 Advance $ 0 0 15,000 1500 30,000 3000 45,000 4500 60,000 6000 Number of countries where 14 4000 the book will be distributed 12 3500 10 3000 8 2500 6 2000 Number of book clubs that will 5 5000 adopt the book 4 4000 3 3000 2 2000 1 1000

answer the following question:

1. What was the point outcome in total and for each of the eight issues for you and your negotiating partner? The eight issues are: 1) royalties, 2) contract signing bonus, 3) number of print runs for the book, 4) number of weeks Paige has to promote the book, 5) number of books, 6) advance, 7) number of countries where the book will be distributed, 8) number of book clubs that will adopt the book.

2. How did your deal compare with the deals for the rest of the class? Are you satisfied that you negotiated a good deal? What did you do well? What could you have improved upon?

3. What is logrolling? What are the two issues in the role play that have potential for logrolling? Did you and your counterpart take advantage of these logrolling opportunities? Why or why not?

4. Did you or your counterpart engage in "unethical" practices (e.g., bluffing, good cop/bad cop)? If so, what were they? What impact did they have on the agreement (or lack thereof)? If a bluff was used, what is the chance it would be exposed in this scenario (it was exposed in the debriefing) and what would the impact of a bluff be on future negotiations? Are these "unethical"/game-playing behaviors unethical or are they part of the competitive dynamic in most negotiations and to be expected and are simply part of the game and not unethical?