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BARGAINING BEHAVIOR IN A BUSINESS SIMULATION GAME *
Author(s) -
Slusher E. Allen,
Sims Henry P.,
Thiel John
Publication year - 1978
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1978.tb01387.x
Subject(s) - negotiation , bargaining power , context (archaeology) , microeconomics , wage bargaining , wage , mode (computer interface) , economics , business , labour economics , computer science , political science , paleontology , law , biology , operating system
Three studies of labor‐management negotiations were conducted within the context of a business simulation game. Face‐to‐face bargaining lasted approximately two hours and resulted in settlements that were incorporated into the simulation game parameters. A total of 56 simulated companies, each comprised of five MBA students, were studied. Results from the first study showed that extending low initial offers, extracting large first concessions, and making a high number of concessions were management bargaining tactics associated with obtaining a low wage rate. These findings were supported by study two. The third study found that an intrateam power mode of orientation was positively correlated with bargaining success and was negatively correlated with overall game success. The results support the use of a simulation game for teaching and research in bargaining.