ABSTRACTThree studies of labor‐management negotiations were conducted within the context of a business simulation game. Face‐to‐face bargaining lasted approximately two hours and resulted in settlements that were incorporated into the simulation game parameters. A total of 56 simulated companies, each comprised of five MBA students, were studied. Results from the first study showed that extending low initial offers, extracting large first concessions, and making a high number of concessions were management bargaining tactics associated with obtaining a low wage rate. These findings were supported by study two. The third study found that an intrateam power mode of orientation was positively correlated with bargaining success and was negatively correlated with overall game success. The results support the use of a simulation game for teaching and research in bargaining.
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