Lakeside

Michael A. Wheeler

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Case | HBS Case Collection | November 2001

Lakeside

by Michael A. Wheeler

Abstract

This case presents an ethical choice: How should a prospective buyer respond when a homeowner quotes a price that the buyer knows is significantly below market value? The case describes a private transaction in which the prospective seller is fully competent mentally but is apparently uninformed about current market prices. The buyer could agree to the asking price (or even counter with a lower figure) without taking any financial risk, because he or she could obtain appropriate guarantees of good title, absence of environmental problems, and so forth.

Keywords: Ethics; Price; Negotiation Process; Property; Risk and Uncertainty; Real Estate Industry;

Format: Print

2 pages

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Citation:

Wheeler, Michael A. "Lakeside." Harvard Business School Case 902-104, November 2001.

About the Author

Michael A. Wheeler

MBA Class of 1952 Professor of Management Practice, Retired

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Teaching Note | HBS Case Collection | November 2000 (Revised October 2019)

Riggs-Vericomp Negotiation (A) and (B)

Michael Wheeler

Teaching Note for (9-801-096) and (9-801-097).

Keywords: Negotiation;

Citation:
Wheeler, Michael. "Riggs-Vericomp Negotiation (A) and (B)." Harvard Business School Teaching Note 801-259, November 2000. (Revised October 2019.) View Details

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Exercise | July 2000 (Revised October 2019)

Riggs-Vericomp Negotiation (A):Confidential Information for RIGGS ENGINEERING (Seller)

Michael Wheeler

The seller (Riggs Engineering) manufactures and services recycling equipment for the computer industry. The buyer (Vericomp) uses solvents in manufacturing chips. Though set in a high-tech industry, this exercise illustrates fundamental aspects of negotiation analysis that would apply in any situation--specifically, potential sources of joint gains and the tension between creating and claiming value. While it may be possible to reach a deal on price alone, doing so is difficult. Students can expand the zone of possible agreement if they creatively trade on other issues, including the scope of services Riggs will provide, payment schedules, timing of the contract, and possible guarantees. Even as they jointly expand the pie, of course, they must be mindful of what slice will be theirs. All agreements can be expressed in present value terms, so it is easy to identify which pairs generated the most gain, and which individuals got the best deals for their particular companies. This is a two-party, multi-issue negotiation exercise. Students should read either the (A) or the (B), but not both, and then be paired up to negotiate. Results are reported using the simple form at the end of the (A) case (seller role).

Keywords: Agreements and Arrangements; Negotiation Participants; Negotiation Tactics; Value Creation; Computer Industry;

Citation:
Wheeler, Michael. "Riggs-Vericomp Negotiation (A):Confidential Information for RIGGS ENGINEERING (Seller)." Harvard Business School Exercise 801-096, July 2000. (Revised October 2019.) View Details

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Exercise | July 2000 (Revised October 2019)

Riggs-Vericomp Negotiation (B): Confidential Information for VERICOMP (Buyer)

Michael Wheeler

The seller (Riggs Engineering) manufactures and services recycling equipment for the computer industry. The buyer (Vericomp) uses solvents in manufacturing chips. Though set in a high-tech industry, this exercise illustrates fundamental aspects of negotiation analysis that would apply in any situation--specifically, potential sources of joint gains and the tension between creating and claiming value. While it may be possible to reach a deal on price alone, doing so is difficult. Students can expand the zone of possible agreement if they creatively trade on other issues, including the scope of services Riggs will provide, payment schedules, timing of the contract, and possible guarantees. Even as they jointly expand the pie, of course, they must be mindful of what slice will be theirs. All agreements can be expressed in present value terms, so it is easy to identify which pairs generated the most gain, and which individuals got the best deals for their particular companies. This is a two-party, multi-issue negotiation exercise. Students should read either the (A) or the (B), but not both, and then be paired up to negotiate. Results are reported using the simple form at the end of the (A) case (seller role).

Keywords: Agreements and Arrangements; Negotiation Participants; Negotiation Tactics; Value Creation; Computer Industry;

Citation:
Wheeler, Michael. "Riggs-Vericomp Negotiation (B): Confidential Information for VERICOMP (Buyer)." Harvard Business School Exercise 801-097, July 2000. (Revised October 2019.) View Details

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Lakeside

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