- Reactive Devaluation - Tendency of negotiators to denigrate and devale another
part's concessuon simply because they are being offered by an adversary. Vividness Bias - Create Scoring System - Seperate Information from Influence Non Rational Escalation of Committment - Start your negotiation with a preplanned strategy - to cut losses decide in ad vance - Assign and reward devil's advocate - who criticises your decisions and find fa ults in your logic Person should be trustworthy,not have invested in or helped design initial strat egy,no conflict of interest regarding final outcome - Anticipate and prepare for escalation forces likely to encounter learn to identify competitive traps, understand cause and consequence of escalat ion and prepare in advance to de-escalate / cut your losses. Susceptibility to Framing - Risk Averse when thinking about potential gains - want sure thing when somethi ng to gain - Risk seeking when thinking about potential losses - all or nothing when someth ing to lose - Framing effects - treat risks involving perceived gains differently from tisks involving perceived losses Consider Various Reference Points to help evaluate situation Evaluate if strategy still make sense if use difference reference point Anytime risky strategy - think if strategy make sense on changing frame Strategies of Influence - Chapter 7 Strategy 1 - Highlight potential losses than potential gains Loss Aversion - likely to avoid losses than accrue gains. - State proposal as what potential gains if forgo/reject proposal Influence greatly increases on a loss frame Overreliance can sour relationships -Disaggregate their Gains - Aggregate their Losses Do not make all concessions at one. Good news - parcel the information in smaller gems Benefits and Rewards - Seperate into installments you can make over time - Requesting or Demanding concession - make one comprehensive - Bad news - share it all once - Costs or burden to impose - combine into one Strategy 3- Employ the door in the face technique first no then yes - extreme demand to reduce - viewed as concession contrast effect -tendency to judge the size of something based on context in whi ch it is situated Strategy 4 - Foot in the door Techniquee Willingness to agree with one request leads to an increased committment to agree with additional requests that naturally flow from the initial requests DITF - Aim for rejection then moderate demands, latter has to be quick FITD - Aim for compliance then increase demands - increase dmand over time Strategy 5 - Leverage the Power of Justification Provide justification, follow up with evidence
Strategy 6 - Leverage the power of Social proof
Everyone doing it - so I should too Strategy 7 - Make token Unilateral Concessions More salient your concession - more compelled to reciprocate in substantiative w aus Strategy 8 - Use reference points to make your offers and demands seems reasonab le Way in which people value their own interests is open to influence Evaluate costs in comparison with salient reference points. Desire to get a good deal makes negotiators suspectible to influence Defense Strategies 1. Prepare Systematically - Rigorous BATNA, Carefully evaluate ZOPA; evaluate in terest and priorities 2. Create a scoring system - Objectively evaluate every proposal made, compare t otal value of alternative offers to BATNA or aspiration value 3. Seperate information from influence 4. Rephrase their offers in other terms - ex. loss frame to gain frame 5. Appoint a Devil's Advocate 6. Do not negotiate under pressure. Bounded Awareness - Negotiators tend to focus narrowly on decisions they mist ma ke and often ignore relevant information which is outside scope