Recapping SW&CR: Darth Vader’s Mistake (Ch. 17)

Chapter 17: This Deal’s Getting Worse All the Time: Negotiator Satisfaction Matters (Hillary Anger Elfenbein & William Bottom)

This chapter examines the deal between Lando Calrissian and Darth Vader in The Empire Strikes Back, and the lessons that can be learned about negotiation satisfaction. The viewers do not get to see the actual negotiation, but one can imagine that Vader promised Calrissian that the Empire would look the other way with regards to Calrissian’s illegal mining operation in Cloud City on Bespin. Instead, the viewer sees the negotiation unravel as Vader changes the deal, eventually causing Calrissian not only to rebel against Vader in this instance, but to join the Rebellion.

Initially, Vader promises Calrissian that Han and Leia will go free as soon as Luke arrives. It appears Vader never intended to follow through on this to begin with, as he had already contracted with Boba Fett to bring Han (frozen in carbonite) to Jabba the Hutt. Once Han and Leia arrive, however, Vader insists that Leia and Chewbacca are to remain in Cloud City under Lando’s supervision. Although Lando does not fully agree to these terms, he goes along with it…that is, until Vader changes the deal yet again, demanding that Leia and Chewbacca be taken to Vader’s Imperial ship. This is the last straw for Lando, who helps Leia and Chewbacca escape on the Millennium Falcon.

This series of events teaches us that it is important to consider negotiators’ levels of satisfaction during and after negotiations. Positive feelings after a negotiation are a useful criterion for assessing both the benefits of a deal and the likelihood that such a deal will succeed. For example, if you leave a deal feeling positive about the outcome, you are likely going to be more willing to renegotiate if there are any unexpected circumstances. “Negotiator satisfaction” is used to measure post-negotiation happiness. People put importance on objective terms—factors such as money and delivery time. But people also find equally important subjective factors: things like being treated fairly, receiving an apology, and trusting that the other party would follow through on their end of the deal. This chapter details many of the benefits that are achieved by both parties when there is high negotiator satisfaction, and how deals can backfire when one party, like Vader, pushes the other party to a breaking point.

Ultimately, factors such as goodwill, strong relationships, and mutually beneficial negotiating go a long way in building deals that will succeed. Learn from Darth Vader’s mistakes with Lando: negotiate and renegotiate in good faith, so your counterpart doesn’t join the Rebellion and destroy your second Death Star.

— Written by Sarah Takessian, SW&CR Padawan and 3L at the University of Oregon School of Law