To illustrate how to compute the conflict strength coefficient, we provide an example based on a multi-issue negotiation task used by Murnighan and colleagues (1999).
The task is a symmetric, multi-issue negotiation between a city planner and a development company over six issues: two issues are compatible issues (retail space and inspector choice), two issues are distributive (open space and height), and two issues are integrative (financing and subcontractors).
The task is a symmetric, multi-issue negotiation between a city planner and a development company over six issues: two issues are compatible issues (retail space and inspector choice), two issues are distributive (open space and height), and two issues are integrative (financing and subcontractors).
- Make sure that you have the payoffs for both roles (e.g., city planner and development company) at hand.
- Compute the joint optimum across all issues. The joint optimum is the maximum individual gain from cooperation. Note that the options for the joint optimum differ depending on whether the issue is integrative, distributive or compatible.
- Compute the individual optimum across all issues. The individual optimum is the maximum individual gain from cooperation. Note that the options for the individual optimum are the same for integrative, distributive or compatible issues.
- Compute the compromise across all issues. Note that the options for the compromise are the same for integrative, distributive or compatible issues.
- Insert the computed values for the joint optimum, the individual optimum, and the compromise into the formula below and you will obtain the conflict strength coefficient of your multi-issue negotiation task.
The figure illustrates the computation of the conflict strength coefficient.
The City’s Planner’s Payoff
The Development Company’s Payoff
The Conflict Strength Coefficient
