Some cultures have a long tradition of haggling—bargaining back and forth about the price of an item—in markets and bazaars. By contrast, in the United States and many other countries, haggling between buyers and sellers is an under-practiced skill. You might routinely pass up opportunities to haggle in situations where financial negotiations are not the … Read More
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The following items are tagged financial negotiations:
Opening offers have a strong effect in price negotiations. The first offer typically serves as an anchor that strongly influences the discussion that follows. In research documenting price anchoring, psychologists Daniel Kahneman and Amos Tversky found that even random numbers can have a dramatic impact on people’s subsequent judgments and decisions. … Read More
In financial negotiations, it’s always better when someone accepts your offer rather than rejecting it, right? Actually, rejection can sometimes be the most effective way to get to “yes.” … Read More
Suppose you are about to negotiate the price of your used car with a potential buyer. You know that the fair market value of the car is about $5,000–$6,000. You want to make an opening offer that is aggressive but not offensive. Should you name a specific price—say, $7,000—or suggest a price range, such as … Read More
As negotiation experts, David Lax and Professor James Sebenius find that many negotiators focus on process and substance. Whether in person, over the phone, or through email, business outcomes seem determined by how well parties can establish trust, communicate, and put the best deal on the table. These are the first two and best known … Read More
What’s the right number of options to put forward in financial negotiations? In their April 2005 article in the Negotiation newsletter, “Putting More on the Table: How Making Multiple Offers Can Increase the Final Value of the Deal,” Northwestern professors Victoria Husted Medvec and Adam D. Galinsky write that issuing three equivalent offers simultaneously can … Read More