A few days ago I wrote about the "Three Way Negotiation", and how I anticipated that it would be unpleasant at best. I was right. Here is what happened.
To refresh your memory, as the seller, I own land which is worth 200 to me. Buyer B wishes to purchase the land, and it is worth 600 to him. Buyer C also wishes to purchase the land, and it is worth some undisclosed amount in between 200 and 600 to him. What to do?
The buyers initially met and thought about offering me 210, leaving me with a surplus of 10 and allowing them to split the remaining 390 surplus between the two of them. Needless to say, this did not go down well with me.
Logistical issues prevented all three participants from meeting together. There were numerous one-on-one discussions, but no agreements. Buyer C was also gone for the weekend, and I (as the seller) was in class all Monday morning; the deadline occurred before I got out of class.
Evenutally I got tired of bargaining and offered the land for 400 to the person who responded first; I added that I would check my email just before the deadline to see the results. If there were no takers, I suggested that we all walk away with zero.
Buyer B responded with an offer of 275; this was less than his previous offer of 333. Buyer A responded with 276. Buyer A did send the offer with this personal message:
It is sooo disappointing that we don't have process scoring this time. Lucky, you are the MOST uncooperative person I have ever met. You didn't even try to do something to make the deal.
If you want my bid - 276.
Economic theory predicts that I would take the offer for 276. OB predicts that I would take 275.
My apologies, Professor Dierickx, but I took 275.
5:16:26 PM
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