Business Negotiations

Adapted from “Should You Get the Kinks Out?” by Ian Larkin (professor, Harvard Business School), first published in the Negotiation newsletter.

You may have heard about the power of contingent contracts in negotiation. As an example, imagine that a supplier has proposed you pay a bonus of 10% if the fault rate for its products is … Read Get the Kinks Out

Adapted from “Give a Gift that Keeps on Giving (to You),” first published in the Negotiation newsletter.

It was the kind of windfall that would make any employee feel appreciated. In October 2009, Jenna Lyons, the creative director of New York–based fashion retailer J. Crew, received a cash bonus of $1 million from her boss, J. … Read Offering Gifts—With Strings Attached

Adapted from “Negotiating with a 900-pound Gorilla,” by Lawrence Susskind (professor, Massachusetts Institute of Technology), first published in the Negotiation newsletter.

Does your company ever have to negotiate with a behemoth that dominates your market–the so-called 900-pound gorilla? Whether they’re big-box retailers with aggressive pricing strategies or well-established computer software providers, one or two companies seem … Read The 900-pound Counterpart

Adapted from “Promote the Positive or Minimize the Negative?” First published in the Negotiation newsletter.

Tory Higgins, a social psychologist, and his colleagues Lorraine Chen Idson and Nira Liberman have introduced the concept of regulatory focus. According to Higgins, when making decisions, people focus on either promotion or prevention. Those focused on promotion are primarily concerned … Read Accentuate the Positive

Adapted from “Leverage Time to Your Advantage,” by Deepak Malhotra (professor, Harvard Business School), first published in the Negotiation newsletter.

Businesspeople often make the mistake of beginning negotiations only after an offer is on the table or after an old contract has expired. Why is this a problem? When money is at stake, it can be … Read Making Time for Relationships

Adapted from “What’s Really Relevant? The Role of Vivid Data in Negotiation,” by Max H. Bazerman (professor, Harvard Business School), first published in the Negotiation newsletter.

Students at top business schools are in an enviable position to negotiate for issues central to their careers and personal happiness. After all, they’re bright, well-trained, and highly sought after … Read The Power of Vivid Data

Adapted from “The Brett Favre Trade: A Win-win Deal in a Win-lose Game,” first published in the Negotiation newsletter.

In the middle of the National Football League’s off-season, as legendary quarterback Brett Favre weighs for the third year in a row whether to return to football or accept retirement, it’s worth revisiting the negotiations behind his … Read The negotiating QB

Adapted from “Negotiations Versus Auctions in Procurement,” first published in the Negotiation newsletter.

When developing procurement contracts, when should you hold an auction, and when should you negotiate? In a study of more than 4,000 private-sector construction contracts in Northern California between 1995 and 2000, researchers Patrick Bajari, Robert McMillan, and Steven Tadelis examined the differences … Read Negotiation or an auction?

The PON Clearinghouse offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises. Ocean Splash is a two-party, two-issue scoreable negotiation between a charity and a corporate sponsor regarding the number and placement of advertising banners at a fundraising walk.

SCENARIO: The U.S. Cancer Association (USCA) chapter in Sixton City is organizing its … Read Advertising at a charity walk