Negotiations for the Privatization of Electricity : The Experience in Eastern Germany

This paper provides a detailed look at the structure, process and results of the negotiations for the sale of the electricity distribution sector in eastern Germany in 1992-94. Its focus is on assessing the practical effects of a new set of assumptions about "economic rationality". In essence, it provides at least anecdotal evidence that viewing a negotiation as a "communicative game" (in the sense of Habermas) rather than as a strategic one, as received theory dictates, can lead to materially better results