negotiation technique

The following items are tagged negotiation technique.

Why You Should Help Them Be Less Biased

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Would you rather negotiate with someone who is rational or irrational? Too many negotiators falsely assume that bargaining with an irrational partner lends you a competitive advantage. You may think that you should use their mistakes to your advantage.

Should You Go Dutch?

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Most everyday auctions are English: they begin with an opening bid, continue with ascending bids, and end when the bidding stops. But for some assets, the seller opens at a very high price, then moves down rather than up if all bidders are silent.

A Better Negotiation Map

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How often have you heard that, when entering a negotiation, you should get your allies onboard first? Conventional wisdom, but not always the best advice. When the United States sought to build a global anti-Iraq coalition following Iraq’s 1990 invasion of Kuwait, for instance, Israel appeared to be its strongest regional ally.

Why We Misjudge What’s Fair

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Researchers Frederick G. Banting and John Macleod were jointly awarded the Nobel Prize in 1923 for their partnership in the discovery of insulin. After receiving the prize, Banting publicly contended that Macleod, the head of their laboratory, had been more of a hindrance in the research than a help. For his part, Macleod, in speeches about the work that led to the discovery, routinely failed to mention that he had had a research partner.

What Makes Negotiators Happy?

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The question above may seem silly. Getting more of what we care about seems the obvious answer. Yet negotiators often don’t know how to accurately assess a good outcome; instead, they rely on outside indicators to determine their satisfaction, for instance by comparing their outcomes to those of others. Your negotiated annual salary of $100,000 appears quite different if you learn that others in your position are earning $110,000.

Capitalize on the Similarity Effect

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The evidence from social science is clear: people’s behavior is powerfully influenced by the actions of those who are like them. A classic study by Harvey Hornstein, Elisha Fisch, and Michael Holmes found that New York City residents were highly likely to return a lost wallet after learning that a “similar other”—another New Yorker—had first tried to do so. But evidence that a dissimilar other—a foreigner—had tried to return the wallet did not increase the likelihood that they would try. When people are trying to determine how to act, they pay attention to how others like them behave in the same situation.

Check Your Confidence

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Many negotiators understand the importance of estimating the other side’s reservation price—the worst deal he would accept from you. However, despite the fact that such estimates often are based on hints, clues, and speculation, negotiators are frequently overconfident that their estimates are accurate.

When It Pays to Delay

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Kathy, a serial entrepreneur, was negotiating the acquisition of a boutique software-development firm when a dispute arose regarding the valuation of one of the software firm’s assets. Specifically, the firm owned the rights to a technology patent of uncertain value. The firm’s owner argued that this patent was worth millions. Kathy agreed that the patent had potential, but there was a problem. The technology potentially infringed on existing patents, and the holders of these patents would almost certainly challenge the firm’s patent in court. If the patent could withstand these legal challenges, it would indeed be worth millions. If not, it might be worthless.