Justin and Johnny are playing basketball. As it happens when boys play. they lose track of time. If Johnny doesn't get home right away, he's going to be in trouble, Johnny asks Justin if he can borrow his bike in order to make it home on time. Justin is an avid racer and his bike is very special to him. After some extended pleading, Johnny says OK. with the admonition that Johnny be sure and take care of the bicycle.
When they meet at school the next day, Johnny tells Justin that in the morning when he went to get the bicycle to ride to school, he found it had been stolen. We see Justin use three different approaches to negotiate compensation for the lost bike with Johnny – COLD, HOT, and COOL.
Cold
Justin tells Johnny that he expects to be reimbursed for the bike. Johnny maintains that losing the bike was an accident and suggests the friendship could be in jeopardy (emotional blackmail) if Justin does not back off in asking for repayment. To avoid conflict and the possibility of losing the friendship, Justin accepts Johnny's offer of his old dilapidated bike as compensation for his stolen racing bike. The COLD Negotiator is interested more in the relationship than in the deal and often will be unfair to themselves to avoid conflict or the loss of the relationship.
Hot
The HOT Negotiator is interested more in the deal than the feelings of the person with whom he is negotiating. Because it's "the deal" that matters, Justin bargains hard and uses whatever techniques he thinks are necessary to obtain what he wants, including emotional blackmail and threats. The inevitable destructiveness of HOT Negotiation on relationships is illustrated clearly.
Cool
The COOL negotiator is interested in both the deal AND the relationship. Consequently, they want what's fair for both sides. Instead of giving in to emotional blackmail or using threats to get fair compensation. Justin uses the BeCool Give & Take plan to guide his negotiations with Johnny. After much Give & Take, an agreement is reached that is fair to both sides. It is a W.LS.E. Agreement because it resulted in mutual trust and respect and promoted future cooperation.