NEGOTIATION/
PREPARATION
• A. Target (Aspiration) Point
– Most preferred or ideal settlement
• B. Reservation Point (BATNA)
– Least favorable settlement. (Can settle or walk
away.)
– Best Alternative To a Negotiated Agreement
–
PREPARATION
• BARGAINING ZONE ( settlement zone)
– Region between the parties reservation points
• Positive bargaining zone (Reservation
points overlap)
– settlement possible
(Thompson Page 35)
• Negative bargaining zone (Reservation
points do not overlap)
– settlement not possible
– Bargaining Surplus - Amount of overlap
PERCEPTUAL DISTORTION
• A. Stereotyping
– Assigning attributes based on membership in a
particular group
• B. Halo effects
– Generalize on a number of attributes based on
knowledge of one attribute.
• C. Selective perception
– Accepting information that supports prior belief
and filtering out nonconforming information
PERCEPTUAL DISTORTION
• D. Projection
– Ascribing to others the characteristics you have
– Assuming that the other party will respond in
the same manner you would respond.
• E. Framing
– Subjective evaluation mechanisms to determine
whether to pursue or avoid future actions
Relationships
• A. The norm of reciprocity
– Duties owned to one another because of prior
actions.
– Reciprocity traps
• B. The similariity principle
– We assume others like us act like us
COGNITIVE BIASES
• A. Irrational Commitment
– Irrational commitment to positions
• B. Fixed-Pie Beliefs
– Assumption that all negotiations are zero sum
• C. Anchoring and Adjustment
– Avoid false or inappropriate anchors
COGNITIVE BIASES
• D. Information availability bias
– Giving greater weight to easily available
information and established search patterns.
• E. Winners Curse
– Settling to quickly
• F.Overconfidence
– Overestimate chance of success
– Discount others advice and information
COGNITIVE BIASES
• G. Law of Small Numbers
– Tendency to draw conclusions from small
sample sizes.
• H. Self-serving biases
– Fundamental attribution error /False -consensus
• Ignoring Other’s Cognition's
– Failure to consider other party’s perceptions.
COGNITIVE BIASES
• Reactive Devaluation
– Devaluing other party’s concessions
• Reduces willingness to respond.
FAIRNESS
• Principle 1
– Multiple Methods of Fair Division
• Principle 2
– Fairness is Context Driven
• Principle 3
– Fairness is Often Based on Comparisons
FAIRNESS
• Principle 4
– People seek equity
• Principle 5
– People will attempt to restore equity from
inequity.
• Principle 6
– People need to maintain egos
FAIRNESS
• Principle 7
– People care about process
• Principle 8
– Judgements are affected by relationship
• Principle 9
– Egocentrism taints judgement