1. NEGOTIATION/BARGAINING

2. VIEWS DISTRIBUTIVE BARGAINING INTEGRATIVE BARGAINING
DIVIDE A FIXED AMOUNT
WIN-LOSE
INTEGRATIVE BARGAINING
TRY TO CREATE WIN-WIN

3. NEGOTIATION SKILLS REMEMBER, IT IS NEGOTIATION NOT WAR!
WE ARE OPPONENTS
NOT ENEMIES.

4. RESEARCH THE OPPONENT GOALS INTERESTS STRATEGY PREDICT RESPONSES
FRAME SOLUTIONS IN TERMS OF HIS/HER INTERESTS

5. BEGIN POSITIVE BEGIN WITH SMALL CONCESSION
CONCESSIONS USUALLY RECIPROCATED

6. ADDRESS PROBLEMS FOCUS ON THE PROBLEM DO NOT FOCUS ON PERSONALITIES
“MANAGE” EMOTIONS
MAY “WIN THE BATTLE BUT LOSE THE WAR”

7. FIRST OFFER IS JUST BEGINNING
INITIAL OFFER IS POINT OF DEPARTURE

8. EMPHASIZE WIN-WIN LOOK FOR INTEGRATIVE SOLUTIONS
USE ABUNDANCE MENTALITY

9. ACCEPT THIRD PARTY ASSISTANCE
IF STALEMATE, USE NEUTRAL 3RD. PARTY

10. HINDERANCES TO NEGOTIATION
Robbins, S. (1994). Management, 4th. Ed. Englegood Cliffs: Prentice Hall,

11. ESCALATION OF COMMITMENT
WON’T PULL OUT OF A “BAD DEAL”
“SUNK COSTS” CAN’T BE RECOVERED
SHOULD NOT BE CONSIDERED

12. FIXED PIE
WIN-LOSE
MISS TRADE-OFFS THAT COULD BENEFIT BOTH SIDES

13. ANCHORS GET “HUNG UP” ON SOMETHING INITIAL OFFER HAVE TO “WIN”
SET ON A SOLUTION
SET ON A CERTAIN PROCESS
“PUBLIC” STATEMENT

14. FRAMING THE NEGOTIATIONS
FRAME OF REFERENCE
A SEEKS $4 RAISE
B OFFERS $2
IS THIS A $2 GAIN OR LOSS TO A?
B SHOULD TRY TO FRAME AS $2 GAIN.

15. AVAILABILITY OF INFORMTION
READILY AVAILABLE = IMPORTANT?
“EXPERIENCE” IS READILY AVAILABLE
VIVID EVENTS READILY AVAILABLE, I.E. REMEMBER
MUST DISTINGUISH BETWEEN EMOTIONALY FAMILIAR AND RELEVANT/RELIABLE

16. WINNER’S CURSE REGRET FELT AFTER CLOSING
COULD YOU HAVE GOTTEN BETTER DEAL?
PAY TOO MUCH?
REDUCE BY GETTING MORE INFORMATION BEFORE YOU BEGIN

17. OVERCONFIDENCE IN JUDGMENT, CHOICE “EXPERIENCE,” MENTAL SETS ARE SURE
IGNORE CONTRADICTORY INFO
LESSENS INCENTIVE TO COOPERATE