McGraw-Hill/Irwin
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
CHAPTER TWELVE
Coalitions
Situations with More than
Two Parties
Variations on a three-party negotiation:
1. One buyer is representing the other and two
negotiations are occurring
2. The seller is conducting a sequenced series of
one-on-one transactions
3. The seller is about to unwittingly
compromised by the buyers (this happens
when the parties form coalitions or subgroups
in order to strengthen their bargaining position
through collection action).
12-3
A Seller and Two Buyers
12-4
What Is a Coalition?
• Interacting groups of individuals
• Deliberately constructed and issue
oriented
• Exist independent of formal structure
• Lack formal structure
• Focus goals external to the coalition
• Require collective action to achieve goals
• Members are trying to achieve outcomes
that satisfy the interests of the coalition
12-5
Types of Coalitions
• Potential coalition: an emergent interest
group that has the potential to become a
coalition by taking collective action but
has not yet done so.
– Two forms:
• Latent coalitions
– Emergent interest group that has not yet formed
• Dormant coalitions
– Interest group that previously formed, but is
currently inactive
12-6
Types of Coalitions
• Operating coalition: one that is currently
operating, active, and in place.
– Two forms:
• Established coalition
– Relatively stable, active, and ongoing across an
indefinite time and space
– Members represent a broad range of interests
• Temporary coalition
– Operates for a short time
– Focused on a single issue or problem
12-7
Types of Coalitions
• Recurring coalitions: may have started as
temporary, but then determined that the
issue or problem does not remain resolved
– Members need to remobilize themselves
every time the presenting issue requires
collective attention
12-8
How and Why Coalitions
Form and Develop
When coalitions form:
• Parties come together to pool efforts and resources in
pursuit of common or overlapping goals
• Control over resources becomes the basis for two
critical pieces of the coalition formation process:
– What each member brings to the coalition
– What each member should receive if the coalition forms
12-9
How and Why Coalitions
Form and Develop
• Coalition formation is studied by:
– A classic coalition game: The 4–3–2 game
– Real-world examples: The European Economic
Community (EEC)
• Coalitions form to preserve or increase resources
• Coalitions form in order to avoid a poor outcome that
will occur if individuals acts alone (a “social
dilemma”)
12-10
How and Why Coalitions
Form and Develop
How coalitions develop:
• Coalitions start with a founder
– Successful founders have extensive networks
– Founders’ benefits from early coalitions are
likely to be small
• Coalitions build by adding one member at a
time
– The founder finds an ally;
– The founder can benefit if he or she understands
the others’ interests
12-11
How and Why Coalitions
Form and Develop
• Coalitions need to achieve critical mass
– Find their “joining threshold”
• A minimum number of people get on board
• Others join because friends and associates are
members
• Coalitions exclude weaker members who can’t
contribute
12-12
How and Why Coalitions
Form and Develop
• Linking new members—“ties”—become critical:
– Strong ties: a new member who can bring a lot to the
coalition, but demands a lot in return;
– Weak ties: a new member who only brings a small amount
to the table—enough to leverage the coalition to a
“win”—but will not demand as much in return.
• Hence, weak ties can create strength for coalition
founders:
– Founders who have a large, diverse network of weak ties
are often in a better situation to form a coalition than
those who have a small, tightly organized network of
strong ties
12-13
How and Why Coalitions
Form and Develop
• Many successful coalitions form quietly and disband
quickly
– Revenge of the vanquished: pits coalitions against each
other so that each one’s sole objective is to keep the other
side from succeeding
– Turmoil within: public acknowledgment of the coalition
could damage future coalition activity
– Desire for anonymity: the more publicly identified
members become with the coalition, the more others may
see their future actions as motivated by coalition
membership and not by their own interests.
12-14
Standards for Coalition
Decision Making
Coalition decision rules
– Three criteria to determine who receives what
from the results of the coalition’s efforts
• Equity standard
– Anyone who contributed more should receive
more (in proportion to the contribution made)
• Equality standard
– Everyone should receive the same
• Need standard
– Parties should receive more in proportion to some
demonstrated need for a larger share of the
outcome
12-15
Standards for Coalition
Decision Making
Where is the strength in coalitions?
• When is “strength is weakness” true?
– Any winning coalition obtains the same payoff
– Actors are interchangeable
– Contribute fewest resources, have least power or
exert the least influence
• When is “strength is strength” true?
– The more resources a party holds or controls, the
more likely he or she will a critical coalition
member
12-16
Power and Leverage in Coalitions
How is power related to coalition formation?
• Strategic power
– Emerges from the availability of alternative coalition
partners
• Normative power
– Derives from what parties consider to be a fair or just
distribution of the outcomes
• Relationship-based power
– Shaped by the compatibility of preferences between
parties
12-17
How to Build Coalitions –
Practical Advice
•
•
•
•
Say no when you mean no
Share as much information as possible
Use language that describes reality
Avoid repositioning for the sake of acceptance
12-18
Prospective Coalition Member Roles
12-19
Prospective Coalition
Member Roles
• Allies
– Parties who are in agreement with a negotiator’s
goals and vision, and whom the negotiator trusts
• Opponents
– People with whom a negotiator has conflicting goals
and objectives, but who can be trusted to be
principled and candid in their opposition
• Bedfellows
– Parties with whom a negotiator has high agreement
on the vision or objectives, but low to moderate
levels of trust
12-20
Prospective Coalition
Member Roles
• Fence Sitters
– Parties who will not take a stand one way or the other
– Fear taking a position because it could lock them in, be
politically dangerous, or expose them to risk
• Adversaries
– Adversaries are low in agreement and cannot be trusted.
12-21
Action Strategies for Building
Relationships in Coalitions
• With allies
– Affirm agreement on collective vision or objective
– Reaffirm quality of the relationship
– Acknowledge doubt and vulnerability with respect to
achieving vision and collective goal
– Ask for advice and support
• With opponents
– Reaffirm relationship based in trust
– State vision or position in a neutral manner
– Engage in problem solving
12-22
Action Strategies for Building
Relationships in Coalitions
• With bedfellows
–
–
–
–
Reaffirm the agreement; acknowledge caution exists
Be clear about expectations in terms of support
Ask what they want from you
Reach agreement on how to work together
• With fence sitters
– State your position; find out where they stand
– Apply gentle pressures
– Focus on issue; have them tell you what it would take to gain
their support
12-23
Action Strategies for Building
Relationships in Coalitions
• With adversaries
– State your vision or goals
– State your understanding of your adversary’s position in a
neutral way
– Identify your own contributions to the poor relationship
– End the meeting by restating your plan but without making
demands
12-24