1. PRINCIPLES OF PERSUASION: MOTIVATING AGREEMENT International Negotiation Strategy: Theory and Practice Spring 2011 Professor Jasper Kim April 13, 2011 Stephan Gill Jamola Khusanjanova

2. Agenda 1. Introduction 2. Cialdini’s Weapons of Influence 3. Social norms 4. Fairness and its types 5. Conclusion

3. Introduction O Negotiation  Persuasion O Persuasion  Coercive – power  Formal – logic  Subtle forms O Different from bounded rationality and emotion

4. Cialdini’s Weapons of Influence O Cialdini – marketing expert O Guthrie – application of ideas to legal context Mental shortcuts (heuristics) Systematic and predictable errors (biases)

5. 6 “Weapons of Influence” PrincipleImplication 1LikingDevelop rapport 2Social ProofCite precedent 3Commitment and Consistency Encourage counterpart to make small concessions early 4Reciprocity“Rejection then Retreat” 5 AuthorityCite objective standards 6ScarcityCreate impression that there are fewer opportunities to settle

6. Scarcity

7. REMOVING THE RATIONALITY ASSUMPTIONS FROM LAW & ECONOMICS FAIRNESS IN NEGOTIATION by Korobkin and Ulen & Nancy Welsh

8. SOCIAL NORMS O Challenges rational choice theory  in some circumstances, behavior due to social norms differs from behavior that rational self interest would suggest;  same behavior in different situations might be due to different kinds of rationality;

9. http://www.youtube.com/ watch?v=BfE4ZL08twA O Can you please put video from this link here, if you find it appropriate and possible thank you!

10. Fairness – particular type of social norm Ultimatum game Dictator game - Player ‘A’ “decision- maker” - Player ‘B’ can either “accept” or “reject” - Player ‘A’ “decision- maker” - Player ‘B’ must “accept” the offer

11. Fairness in negotiations Distributive fairness O Competing criteria for judging distributive fairness; O Variables affecting negotiators’ selection among competing fair allocation principles; O Variables affecting negotiators’ application of equitable principle;

12. Four basic competing principles O Equality – share equally O Need – who need more should get more O Generosity – one person’s outcome sho uld not exceed the outcomes achieved by others O Equity – benefits should be relative to contribution

13. How do negotiators select among these principles? O Self-interest and relationships between negotiators Self-interest No future interaction Positive relationship Negative relationship Strong attachment Expect future interaction

14. Situational needs and cultural norms Collectivism Individualism O Collectivists only use fairness principles with in-group members; O Collectivists’ choice depends on whether they will receive any benefit; O Self interest is the most important ;

15. O Negative relationships  Fair solutions seem less fair when proposed by someone you don’t like;  Messenger is part of the message; O Negotiation interaction  Perceptions of fairness are influenced by the feeling;  Opportunities to speak, consideration of one’s opinions