Presents a scenario for simulation in negotiations with terrorists holding hostages. The game involves a control group plus four teams representing the governments of Arcadia and Laconia, the terrorists, and the hostages. The paper sets the stage for the negotiations by describing an incident in which the Laconian ambassador and diplomatic officials from both Laconia and Arcadia are seized at a ball. The terrorists demand the release of three comrades arrested by Arcadia in return for the release of their hostages. Separate instructions for conducting the simulation, to be given to the control group, are not contained in this paper.
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