1. Factors affecting Negotiations
Type of Relationship between parties
Type of Emotions
Negotiation
Perceptions of Parties
Ability to Invent Options
Best Alternative to
Negotiated Agreement
BATNA
Bargaining Style

2. How the three factors affect negotiation
Type of Relationship between parties
Friends are more conceding, less competitive, often resulting in less optimal mutually beneficial outcomes
Type of Emotions
Happy people are more cooperative and identify mutually beneficial outcomes
Perceptions of Parties
People have perceive negotiations as “fixed pies” and are biased in their perceptions of offers proposed by opponents

3. What is Inventing Multiple Options
Aka expanding the pie
Examples of negotiation with multiple Options
Car Sale Negotiation
Salary Negotiation
Union-Management Negotiation
Using multiple options leads to win-win solutions

4. Factors affecting Ability to
Invent Options
Fixed Pie Perceptions
Search for a single answer
Ability to
Invent Options
Negotiation
Outcome
Time Pressure
Expectations about other party

5. What affects the ability to invent options?
Time pressure
Leads to commitment to a course of action or not reacting to new information resulting in poor outcomes
Search for a single answer
Having multiple equivalent answers results in better outcomes
Expectations of other party
Fixed pie perceptions