October 8th : Brims vs Easterly
During this simulation, I was on the Brims side, and I was paired with José since we were an uneven number.
After having read the documents, we decided that our first offer was going to be $155.000 because it wasn't too far from what we would have to pay for the new parcel we wanted to buy ($165.000). The very best price we realistically hoped for was $130.000, since it was superior to the current value of the land as residential lot. A good outcome would have been $125.000, more or less the value of the land as residential lot. Out walk-away price was $110.000, which was the price we paid for the parcel when we first got it. We supposed that our opponent's target point would be $110.000 (the price we paid for the parcel) and that their reservation price would be $140.000.
Our opponent was Atiyeh. She started the negotiations by offering us $100.000 for the land. We said no, since it was even lower than our reservation price. We asked her why she wanted to buy our land, and she said she wanted her clients to enjoy the view. For this reason, I said that the view was worth $155.000 for us. She said she was willing to pay $135.000. José said we wouldn't go under $140. Atiyeh agreed. We felt really happy and confident we had made a good deal until she showed us what was written on the Easterly part of the brochure.
Then, when everybody shared their results, we realized that we hadn't really understood what was the reservation price (a notion I had questioned in my last post about the article 'Four key concepts') since we were told it should have been $185.000 : $165.000 (the cost of the new site for a Brims shop) + $20.000 (estimated additional legal costs). Winner's curse !
After having read the documents, we decided that our first offer was going to be $155.000 because it wasn't too far from what we would have to pay for the new parcel we wanted to buy ($165.000). The very best price we realistically hoped for was $130.000, since it was superior to the current value of the land as residential lot. A good outcome would have been $125.000, more or less the value of the land as residential lot. Out walk-away price was $110.000, which was the price we paid for the parcel when we first got it. We supposed that our opponent's target point would be $110.000 (the price we paid for the parcel) and that their reservation price would be $140.000.
Our opponent was Atiyeh. She started the negotiations by offering us $100.000 for the land. We said no, since it was even lower than our reservation price. We asked her why she wanted to buy our land, and she said she wanted her clients to enjoy the view. For this reason, I said that the view was worth $155.000 for us. She said she was willing to pay $135.000. José said we wouldn't go under $140. Atiyeh agreed. We felt really happy and confident we had made a good deal until she showed us what was written on the Easterly part of the brochure.
Then, when everybody shared their results, we realized that we hadn't really understood what was the reservation price (a notion I had questioned in my last post about the article 'Four key concepts') since we were told it should have been $185.000 : $165.000 (the cost of the new site for a Brims shop) + $20.000 (estimated additional legal costs). Winner's curse !
Commentaires
Enregistrer un commentaire