Case #669.0

Royal Kingdom of Nari

Publication Date: January 1, 1986
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This is a two-player, multi-attribute negotiation exercise. The companion case is Geodesic Dynamos. Nari is an oil-producing state that wishes to upgrade its air force. With falling oil revenues, it decided to pursue a barter strategy and has entered into negotiations with Geodesic Dynamos, a major defense contractor. The issues at hand are the size of the deal, in terms of both oil and planes; the timing of deliveries; post-sale support by the vendor; guarantees on delivering the oil; level of spare parts provided; and the sophistication of radar equipment. The two parties each receive a utility score depending on the combination of these attributes that pertain to the final agreement that is reached. This exercise fits well as an out-of-class assignment to be undertaken by pairs of students in a course in negotiation, decision analysis or microeconomics.

Other Details

Case Author:
Lee Hsien Loong
Faculty Lead:
Richard Zeckhauser
Pages (incl. exhibits):
United States