bid

Bidding is an offer (often competitive) of setting a price one is willing to pay for something. A price offer is called a bid. The term may be used in context of auctions, stock exchange, card games, or real estate.Bidding is used by various economic niche for determining the demand and hence the value of the article or property, in today’s world of advance technology, Internet is one of the most favourite platforms for providing bidding facilities, it is the most natural way of determining the price of a commodity in a free market economy.

The following items are tagged bid.

Anchor Trials or Balloons in Conflict Resolution

Posted by & filed under Conflict Resolution.

The power of anchors in negotiation has been demonstrated time and again. Sellers who demand more tend to get more. Indeed, the initial asking price is usually the best predictor of the final agreement.

A trio of researchers may have found an important exception to this rule, however; lower starting numbers set by the seller in an auction can lead to higher ultimate prices. Professors Gillian Ku of the London Business School and Adam D. Galinsky and J. Keith Murnighan of Northwestern’s Kellogg School of Management found this result both in laboratory experiments and from data taken from online eBay auctions.

The Enduring Power of Anchors

Posted by & filed under Negotiation Skills.

In past issues of Negotiation, we’ve reviewed the anchoring effect – the tendency for negotiators to be overly influenced by the other side’s opening bid, however arbitrary. When your opponent makes an inappropriate bid on your house, you’re nonetheless likely to begin searching for data that confirms the anchor’s viability. This testing is likely to affect your judgment – to the other party’s advantage.

Psychologists Amos Tversky and Daniel Kahneman identified the anchoring effect in 1974. Participants watched a roulette wheel that, unknown to them, was rigged to stop at either 10 or 65, the estimated the number of African countries belonging to the United Nations. For half of the participants, the roulette wheel stopped on 10. They gave a median estimate of 25 countries. For the other half, the wheel stopped on 65. Their median estimate was 45 countries. The random anchors dramatically affected judgment.

Conflict Management – Evenhanded Decision Making

Posted by & filed under Conflict Management.

As discussed in past articles, anchoring and framing can bias important decisions in negotiation. A buyer may make a more generous offer than she intended, for example, after a seller drops anchor on a bold demand. A litigant who focuses on his chances of winning in court – a positive frame – may be less likely to settle than if he concentrated on a negative frame: his corresponding chances of losing.

Many researchers have studied how such biases are amplified or moderated by mood, expertise, and personality. Groundbreaking work by professors John D. Jasper and Stephen D. Christman of University of Toledo now suggests that our susceptibility to decision biases is hardwired.

Blessing or Curse: The Right of Refusal

Posted by & filed under Business Negotiations.

When transferring property, sellers sometimes insist on rights of first refusal – the chance to be first in line to repurchase the property if their buyer later decides to sell. Rights of first refusal can be obvious advantages if your financial circumstances later change. If you’re keeping adjoining land, you may wish to protect yourself against the risk of something unattractive being built next door.

What is a “Brokered Ultimatum”?

Posted by & filed under Mediation.

Researchers Aleksander Ellis, Stephen Humphrey, and Donald Conlon of Michigan State University and Catherine Tinsley of Georgetown University have studied this new transactional form, which they call brokered ultimatum games, or BUGs. They define a BUG as any transaction involving an intermediary in which one side offers an ultimatum price that the other side either accepts or rejects.

These researchers are particularly interested in bidders’ fairness perceptions of the negotiation. As the success of Priceline indicates, when it comes to BUGs, the faster the response, the more satisfied the customer. In addition, study participants are more satisfied with a BUG and more likely to use it again and to refer other to the BUG when their offers are accepted – no surprise there.

A Win Without Regrets: Winning an Auction and Not Feeling Disappointed

Posted by & filed under Crisis Negotiations.

We have all been in situations in which we are pitted against others in competition for a certain item, whether an award, a promotion, or even in an auction. Often, this competitive atmosphere pushes you to ‘play’ harder than you normally would, overvaluing your objective and over-assessing the importance of victory. Often when a group of people are vying for the same thing, the winner of the auction is revealed to have been overly optimistic about the value of the objective and thus is a victim of the “winner’s curse,” typically described as paying more than the asset is actually worth. The January 2008 issue of the Negotiation newsletter offers three helpful pieces of advice for avoiding the “winner’s curse.”

Sellers: Stay out of legal hot water

Posted by & filed under Sales Negotiations.

When it comes to business negotiations, you probably understand the importance of being as principled as possible to protect your reputation and ward off legal trouble. You probably expect your counterparts to follow the straight and narrow as well. Yet negotiators often have only a fuzzy grasp of which claims and strategies are legal and

Managing conflict in-house

Posted by & filed under Dispute Resolution.

Workplace disputes are inevitable. Employees air grievances, consumers file lawsuits, and strategic partners threaten to fire you and hire your competitor. All too often, such conflicts end up in the courts. In addition to consuming incredible amounts of time and energy, lawsuits often ruin long-standing relationships with suppliers, customers, and shareholders.

Increasingly, organizations are applying the