Data Center Bargaining Game

The story

A data center has moved in next door. Its diesel backup generators have to be tested, and every test hour is money to the operator and noise to the neighbor. One of you runs the data center (Player A), one of you lives next door (Player B). You will bargain in real time over generator hours and a payment, and who holds the property right changes by round.

How we will play

  • Join the Student Portal with a player name.
  • The instructor starts random pairing. You keep the same partner and role for all three rounds. If the class size is odd, one student bargains with an instructor proxy that accepts any offer.
  • Each round runs against a countdown. Bargain inside the app: put an offer on the table, counter your partner’s, accept, reject, or walk away.
  • If the clock runs out with no deal, the round ends at the status quo: the rights holder picks their favorite hours and no payment changes hands.

Payoff schedule

Payoffs are in hundred thousand dollars per month and generator hours are per week.

Generator hoursOperator (A) payoffResident (B) payoff
0012
1410
266
364
492
5101
6110

An accepted deal pays the agreed payment from the noncontroller to the controller on top of these payoffs.

Round 1

  • The operator (A) holds the property right: no deal means 6 hours.
  • The resident can pay the operator to cut hours.

Round 2

  • The resident (B) holds the property right: no deal means 0 hours.
  • The operator can pay the resident to allow hours.

Round 3

  • Same rights as Round 2, but any accepted deal with a positive payment triggers legal drafting costs of 5, split between A and B as part of the offer. Think hard about whether a deal is still worth it.

Tips

  • The offer preview shows both payoffs before you commit; use it.
  • Your total across all three rounds goes on the class leaderboard.
  • Walking away is final for the round, and the confirm button means it.