Successful negotiators work hard to ensure that when they and their counterpart leave a negotiation, both sides feel satisfied with the agreement. Why should you care whether the other side is pleased with the deal or not? First, because satisfied negotiators are more likely to uphold the terms of a deal. Even a lengthy contract cannot cover every possible contingency, and the costs of enforcement are high.
ZOPA
Zone of Possible Agreement: The bargaining range created by the two reservation values. The ZOPA defines a ÒsurplusÓ that must be divided between the parties. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 19)
The following items are tagged ZOPA.
Did You Really Get a Great Deal?
Adapted from “A Worse Deal Than You Think?” First published in the Negotiation newsletter, August 2006.
Most negotiators leave the bargaining table believing they were better at pushing the other side to its limit than was actually the case, according to experimental studies by Richard P. Larrick of Duke University and George Wu of the University
Effective Anchors as First Offers
Adapted from “Anchoring Expectations,” by David A. Lax (principal, Lax Sebenius LLC) and James K. Sebenius (professor, Harvard Business School), first published in the Negotiation newsletter.
People tend to irrationally fixate on the first number put forth in a negotiation—the anchor—no matter how arbitrary it may be. Even when we know the anchor has limited relevance,
“Are We Exclusive?”
Ron McAfee, a carpenter and roofing expert, spent considerable time working with a condominium association on the design of a new roof deck. After gaining agreement on the proposed layout, design, and materials, McAfee submitted a written bid of $12,500. One of the board members subsequently showed McAfee’s plans to another roofer, who offered to do the job for $10,250. The condo association voted unanimously to go with the cheaper roofer, and McAfee was left with nothing to show for his time and effort.
To Avoid Disaster, Plan Ahead
In the midst of the recent financial crisis, accusations of greed on Wall Street have sounded across the globe. Greed may be a significant factor in the collapse of credit markets, but it’s not the only one. Overlooked in cries to punish the “bad apples” is the role of a mistake that virtually all negotiators make: ignoring how our short-term decisions will affect us and others in the future.
Making the First Move
Should you make the first offer? Few questions related to negotiation have yielded more attention and debate. The conventional wisdom among some: Don’t make the first offer, or risk “showing your cards” and perhaps unknowingly giving away some of the bargaining zone.
ZOPA
Zone of Possible Agreement: The bargaining range created by the two reservation values. The ZOPA defines a “surplus” that must be divided between the parties. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 19)
Article: Negotiation and Nonviolent Action: Interacting in the World of Conflict
Negotiation and Nonviolent Action: Interacting in the World of Conflict
By Amy C. Finnegan and Susan G. Hackley
Amy C. Finnegan is a Ph.D. student in sociology at Boston College. Her e-mail address is amyfinnegan@alum.wustl.edu.
Susan G. Hackley is the managing director of the Program on Negotiation at Harvard Law School. Her e-mail address is shackley@law.harvard.edu.
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