Department: Supply Chain and Information Management

Programme: Bachelor of Business Administration (Honours) in Supply Chain Management

Project Title: Does the Sequence of Negotiations Matter in a two-level Power Asymmetric Negotiation?

Supervisor: Dr Ricky WONG

Students: CHAN Chi Shing, CHAN Pak Hei, CHOW Wing Hang, HUI Yu Huen, KWOK Hiu Ching


Our study focuses on a 2-level negotiation in which a supplier, a distributor and a retailer are involved. In order to have reached an agreement that facilitates the production and sale of products, a distributor needs to secure raw materials while he or she is required to find a retailer through which the product can be sold. Therefore, it constitutes the 2- level negotiation. Specifically, our experimental findings shed lights on whether and how the sequence of negotiation affects a negotiator’s performance and outcomes. In this situation, it involves 3 parties, they have different levels of power. The company in the middle needs to do 2 negotiations, one with a powerless company, another one with a more powerful company. The priority of negotiation may affect the confidence of the negotiators. If the company negotiates with a powerless company first and gets the best alternative, that company may get more confidence for the next negotiation even with a more powerful opponent. By doing the research on this, Our research was designed to examine the effects of order of negotiation on which priority of each negotiation can help a company get the best alternative in a most efficient way.

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