Power in Negotiation

Negotiation is a study in power and economics.

Power in negotiation (IMHO) is the ability to walk away from any potential transaction, no matter how far along you are in the process.

The power element is the desire. It’s not the need.

In a commercial setting, especially in the movie business, no one “needs” to get a picture made. Needs are what Maslow describes.

The person who has the most desire for the deal to happen is the one with the least amount of power. That’s why many people cut bad deals.

The other aspect is, of course, simple supply and demand. There are millions of film scripts floating around in the ether. (Most aren’t so good, but many bad scripts get made).

So, when a studio picks one over the other, the negotiating power shifts to the studio.

With the supply outweighing the demand, when a producer picks a script, (unless you’re Aaron Sorkin), your desire bell starts ringing like mad. And the negotiation goes something like “here’s the deal-take it or leave it.” Would you walk away?

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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