Consider the bargaining situation between Compaq Computer Corporation and the California businessman

Consider the bargaining situation between Compaq Computer
Corporation and the California businessman who owned the Internet address
www.altavista.com.15 Compaq, which had recently taken over Digital Equipment
Corporation, wanted to use this man’s Web address for Digital’s Internet search
engine, which at that time had the address www.altavista .digital.com. Compaq
and the businessman apparently negotiated long and hard during the summer of
1998 over a selling price for the latter’s address. Although the businessman
was the “smaller” player in this game, the final agreement appeared to entail a
$3.35 million price tag for the Web address in question. Compaq confirmed the
purchase in August and began using the address in September but refused to
divulge any of the financial details of the settlement. Given this information,
comment on the likely values of the BATNAs for these two players, their
bargaining strengths or levels of impatience, and whether a cooperative outcome
appears to have been attained in this game.

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