price anchoring

The following items are tagged price anchoring:

Price Anchoring 101

Posted by & filed under Negotiation Skills.

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 Price Anchoring 101 

In a Price Negotiation, Should You Make the First Offer?

Posted by & filed under Business Negotiations.

Imagine yourself in a dilemma that only a privileged few experience: You’ve fallen in love with a dazzling, one-of-a-kind home that’s on the market without a list price. Instead, the seller’s broker encourages you to name your price. You’re unsure how much to offer—yet desperate to win the prize.  Leaving the sale price off of a … Read More 

Effective Negotiation Techniques: Strive for a Precision Advantage

Posted by & filed under Negotiation Skills.

As you may have noticed, the first offer made in a negotiation often has a significant influence on the final outcome. In their research, psychologists Daniel Kahneman and Amos Tversky documented that the first number introduced in a negotiation serves as an “anchor” that can be impossible to ignore—no matter how irrelevant, outrageous, or insulting … Read More 

The Anchoring Bias Can Get Talks off to a Strong Start

Posted by & filed under Negotiation Skills.

Should you make the first offer in a negotiation? Typically yes, abundant research on the anchoring bias suggests. What is anchoring in negotiation? In negotiations centered on price or another figure, the party who moves first typically benefits by “anchoring” the discussion that follows on her offer—even if the anchor is arbitrary. For example, the … Read More