Getting To Know The Other Side

• Understand negotiation style of other side.
• Very important in cross cultural negotiations.
• Conversation intelligence.
  • Dont talk too much, so avoid your favorite topics.
  • Ask a lot of questions, people like to talk.
  • Listen.

Power In Negotiations

• Information is the biggest source of power.
• Information about the other side’s BATNA is critical.
• Dont share your BATNA if it is weak.
• Try to weaken the BATNA of other side.
• Strengthen your BATNA.
  • In some cases you can form coalitions to strengthen your BATNA.

Psychological Tools

• Mythical fixed pie assumption - out interests are in conflict with other side.
  • Reactive devaluation.
• Anchoring - who comes up with first price?
  • If value is uncertain - let other side come up with first price.
  • If value is certain - set first price to anchor the negotiation
  • In case of stalemate - use similar deals as a way to break it
• Overconfidence
  • Makes you select a narrow range when calculating ZOPA.
  • Try to use disconforming evidence.
• Framing
  • When we have a positive choice, a gain, we are risk averse.
  • When we have a negative choice, a loss, we are pro risk.
• Availability
  • We are influenced easily by information which is (easily) available.
• Escalation
  • Look at negotiation from other side.
  • Competitive Arousal
    • Causes - intense rivarly, time pressure, spotlight.
    • Avoid - limit role of intense neogitator, manage time, spread responsibility.
• Reciprocity - helping the other side is useful.
• Contrast Principle
  • We compare an option with other available options, not on it own.
  • So good idea to show some really bad options, so the option you want to sell becomes much more attractive.
• Big picture - dont get lost in the details.