Energetics: Single-issue negotiations

This 30-to-45-minute simulation is a dyadic (two-party), single-issue, distributive negotiation. It simulates a single transaction between individual representatives of two diversified energy-producing companies. The transaction involves the potential sale of a wind electricity-generating division of a major energy company.

There is a large positive bargaining zone, increasing the likelihood of a settlement. This exercise is a good introduction to the concepts of bargaining zones, reference points, anchoring and adjustment, as well as distributive negotiating tactics. To add to realism, it is based on a real wind energy division transaction completed in 2002.

Once the session is opened by the educator, learners are assigned the role of either Energetics (the seller) or Generex (the buyer). Each role has unique information that should be kept confidential until the negotiation begins. In addition, since this is a synchronous experience, learners must coordinate a time to negotiate.

Once both learners are connected, they can exchange messages and offers through the simulation. After an offer is accepted, or someone abandons the negotiation, the platform will automatically generate personalized feedback while also updating the educator debrief. The data visualizations available in the debrief will allow the educator to underline the key learning objectives while facilitating discussions about the experience of specific learners as well.

The simulation is mobile-optimized and can be used in courses that cover topics including negotiations, organizational behavior, or conflict resolution. It is the digital version of the popular negotiations case from Kellogg's Dispute Resolution Resource Center (DRRC) library. The core teaching points are unchanged; however, the digital experience allows educators to access more information regarding what occurred within each negotiation as well as across all the participants in the session.