Chapter 11 Negotiator Cognition Copyright 2013 John Wiley amp Sons Common Mistakes of Negotiators The fixed pie myth Framing of negotiator judgment Escalation of conflict Overestimating your value ID: 209012
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Judgment in Managerial Decision Making 8eChapter 11Negotiator Cognition
Copyright 2013 John Wiley & SonsSlide2
Common Mistakes of NegotiatorsThe fixed pie mythFraming of negotiator judgmentEscalation of conflictOverestimating your valueSelf-serving biases
Anchoring biasesSlide3
The Mythical Fixed Pie of NegotiationAssumption that interests directly conflictPerception of negotiations as win-loseDevaluation of counterpart concessionsSlide4
Buying a CondoYou bought your condo in 2005 for $250,000. You have just put it on the market for $299,000, with a real target of $290,000 (your estimation of the condo’s true market value). An offer comes in for $280,000. Does this offer represent a $30,000 gain in comparison with the original purchase price or a $10,000 loss in comparison with your current target? Slide5
The Framing of Negotiator JudgmentLead others to positively frameChallenge negatively framed negotiatorsMediators should promote positive framesSlide6
Escalation of ConflictExamplesMLBNBAPrior prices influence escalatory tendenciesAnnouncing one’s position
Preventing the escalation of conflictAvoid eliciting firm statementsWork around rigid positionsSlide7
Overestimating Your Value in NegotiationOverestimation of holding firmOverestimation of acceptance probabilityAppropriate calibration promotes successLimiting overestimation
Gain more situational knowledgeSeek third-party objective assessmentsSlide8
Self-Serving Biases in NegotiationBiased perceptions of fairnessBiased information processingRole-biased predictions of judge rulingsSupporting arguments considered more important
Social dilemmasFishingClimate changeLimiting self-serving biasesSlide9
Anchoring in NegotiationsAnchoring to arbitrary pricesAnchoring to first offersAmbiguity enhances anchoring effectPrecision enhances anchoring
Focus on your goals