Federal Mediation and Conciliation Service

ACTIVITY: Ostrich Eggs

General Instructions

Time Needed: 60 minutes

Purpose
To illustrate how bargaining can occur at any time, any place. It challenges the
negotiators to determine how to find out information and what to share; and to
see if an interest-based approach can work or if a more competitive model will
prevail.
Designed so some will not reach an agreement, or an agreement that maximizes
the interests of both parties (often called an integrative agreement)
Identify facilitators and inhibitors of integrative solutions (e.g. trust, time, limited
knowledge)

Set-up (5 min.)
Teams of two (dyads)
Ensure private enough
Do not show other party your confidential written instructions
Sitting on airplane next to negotiating opponent and will land in 20 minutes
Success - achieve exactly what your instructions tell you to achieve (not to be
nice) Do the best you can to get what you need to get from these
negotiations
Play role accurately, stay in role (do not let fact that negotiating with fellow
student affect negotiations)
If you get an agreement, do not tell anyone else the results

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Federal Mediation and Conciliation Service

Negotiation (20-25 min.)

Warning 5 minutes before landing
Do not discuss your negotiations or any agreement with anyone else

Debrief (30 min.)

How many reached agreement?
Which groups reached agreement that would each take 5,000 of the 10,000 total
eggs? (Only respond if you reached exactly this agreement)
Which groups reached a different kind of agreement? What was it?
Make point that some groups found the integrative solution of yolks/shells
What facilitated finding the integrative solution? What inhibited it? Key points to
elicit from students include
o Trust
o Common values, shared purpose
o Sharing information
o Asking questions (what kind worked best)

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Federal Mediation and Conciliation Service

ACTIVITY: Ostrich Eggs

ROLE OF A. KAHN

You are the Chief Scientist for the ABC Drug company, an international firm that
specializes in drugs to cure rare diseases. Recently there has been a worldwide
outbreak of X-Flouxide. This disease is a communicable illness that carries a high risk of
causing fetal abnormalities, both physical and mental.

A worldwide emergency exists. Unless X-Flouxide is brought under control quickly, the
chances are great that an unacceptably high percentage of an entire generation will be
dependent upon their families and society for decades. Economist are predicting that
costs would wipe out millions of families and trigger widespread business collapse and
unemployment in thousands of consumer industries. Psychologists anticipate that the
emotional impact will touch almost every family, with terrible consequences.

Your company has been conducting research on X-Flouxide and has identified a serum,
Agent UO, that will prevent the disease. The serum is produced from the yolk of the
eggs of the rare spotted ostrich. This bird is found in small numbers in Africa. They lay
their eggs once each year and their laying period is this month. The eggs for each year
are carefully stored and then sold to gourmet restaurants as thickeners for special
soups. Last years egg supply has all been sold at an average price of $15 per egg.

The only owner of domesticated spotted ostriches, and consequently the major supplier,
lives in a remote part of Africa. There are rumors that he is a member of the international
underworld and involved in narcotics and organized crime. You do not think that he
knows about this new use for his produce.

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Federal Mediation and Conciliation Service

ACTIVITY: Ostrich Eggs

Role of A. Kahn (continued)

The ABC Drug Company will need all 10,000 of this years production of the spotted
ostrich eggs in order to meet the projected serum needs, worldwide. Half of the serum
will be needed in the western hemisphere; one-fifth will be needed for the United States.
Your assignment is to get as many spotted ostrich eggs as you can. Your company has
authorized you to spend as much as $500,000 to get this years crop.

There appears to be competitors for use of spotted ostrich eggs a chemical

manufacturer called the XYZ Company. (Your company has a pending law suit against
them for patent violations.) You have been authorized to compete with the XYZ
Company for the produce, and will match their bidding dollar for dollar up to your limit so
that you can get 100 % of the produce.

You are flying to Africa to try to buy the eggs. It makes you angry that one of the real
beneficiaries of this conflict will be the underworld. Now, you have discovered that the
person in the seat next to you is the agent for the XYZ Company.

You are going to try to convince this person that your need for the produce is so great
that your company should get this years crop. If you can protect the interests of the ABC
Company you will certainly be named the next President of the Company a job that will
pay you five times your present salary.

You should decide on a negotiating strategy:

1. What do you plan to do?

2. If you want to buy the eggs, what price will you offer?
3. To whom and how will the eggs be delivered?
4. How much information will you disclose?
5. Will you make the first offer and why?
6. What are the interests of the other side?

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Federal Mediation and Conciliation Service

ACTIVITY: Ostrich Eggs

ROLE OF M. HOSSAIN
You are the Chief Chemist for the XYZ Chemical Company, a international firm
specializing in making pesticides to eliminate insects that are dangerous to agricultural
crops. Recently, your representatives from around the world have reported a new
outbreak of the Cottermus Moth. This moth can be extremely destructive to all kinds of
trees and if left unchecked, can defoliate and kill whole forests within a matter of days.
Once thought to be under control and nearing extinction, the Cottermus Moth has
suddenly reappeared in large numbers on all forested continents. In two months, the
larvae will hatch and massive forest destruction will result.

If the forests are defoliated, secondary impacts will be unprecedented soil erosion and
the destabilization and loss of water resources. The moth could also move into
agricultural lands and cause serious destruction to crops. Corn appears to be especially
vulnerable to attacks by the moths. The only way to stop the moth is to spray infected
forests with a special pesticide, Compound UO, which has not been manufactured for
several years. Unlike most other pesticides which are synthetic compounds, the
Compound UO is made from the eggshell of the rare spotted ostrich which is found in
Africa. These birds are very few in number and lay their eggs only once each year. Their
laying period is this month. The eggs for each year are usually stored and then sold to
gourmet restaurants as thickeners for special soups. Last years eggs have all been sold
at an average price of $15 per egg.

The only owner of these rare ostriches lives in a remote part of Africa. There are rumors
that he is a member of the international underworld and involved in narcotics and

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Federal Mediation and Conciliation Service

ACTIVITY: Ostrich Eggs

Role of M. Hossain (continued)

organized crime. You do not think that he knows that there will be a new and increased
demand for his eggs this year.

As thousands of eggs will be needed to manufacture the pesticide, your company has
determined that you will need all 10,000 of this years production. Half of the insecticide
will be needed in the western hemisphere; one-fifth will be needed for the United States.
Your assignment is get as many of the spotted ostrich eggs as possible. Your company
has authorized you to spend up to $500,000 to purchase the required eggs.

Along with the gourmet restaurants, there appears to be other competitors for the eggs.
There is a rumor that the ABC Drug Company also wants them. (Your company has a
pending law suit against them for patent violations.) You are concerned that the other
company might try to outbid you.

You are flying to Africa to try and buy this years crop of eggs. It makes you angry that
the underworld may be the beneficiary of societys plight. Now you have discovered that
the person in the airplane seat next to you is the agent of the ABC Company. You are
going to convince this person that your need for the eggs is so great you should get this
years crop. If you protect the interest of XYZ Company, you will surely be named the
next President of the Company, a job that will pay you five times your present salary.

You should decide on a negotiating strategy:

2. What do you plan to do?

3. If you want to buy the eggs, what price will you offer?
4. To whom and how will the eggs be delivered?
5. How much information will you disclose?
6. Will you make the first offer and why?
7. What are the interests of the other side?

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