1. Creativity and Problem Solving in Negotiations
CHAPTER 8
Creativity and Problem Solving in Negotiations

2. What is Your Mental Model of Negotiation?
CHAPTER 8
What is Your Mental Model of Negotiation?
Haggling model
Cost-benefit analysis (Decision-making model)
Game-playing model
Partnership model
Problem-solving model
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

3. Creative Negotiation Agreements
CHAPTER 8
Creative Negotiation Agreements
Fractionating problems into solvable parts
Finding differences: Issue alignment and realignment
Expanding the pie
Bridging
Cost cutting
Nonspecific compensation
Structuring contingencies
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

4. Exhibit 8-2: The Six Benefits of Contingency Contracts
CHAPTER 8
Exhibit 8-2: The Six Benefits of Contingency Contracts
Contingency contracts allow negotiators to
build on their differences
manage decision-making biases
solve problems of trust, when one side has information that the other side lacks
diagnose the honesty of the other side
reduce risk through risk sharing
increase the incentive of the parties to perform at or above contractually specified levels
Source: Bazerman, M. H., & Gillespie, J. J. (1999). Betting on the future: The virtues of contingent contracts. Harvard Business Review, 77(4), 155–160.
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

5. Threats to Effective Problem Solving and Creativity (I)
CHAPTER 8
Threats to Effective Problem Solving and Creativity (I)
The inert knowledge problem
Availability heuristic
Representativeness
Anchoring and adjustment
Unwarranted causation
Belief perseverance
Illusory correlation
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

6. Threats to Effective Problem Solving and Creativity (II)
CHAPTER 8
Threats to Effective Problem Solving and Creativity (II)
Just world
Hindsight bias
Functional fixedness
Set effect (negative transfer)
Selective attention
Overconfidence effect
The limits of short-term memory
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

7. Creative Negotiation Strategies
CHAPTER 8
Creative Negotiation Strategies
Developing “expert” understanding
Feedback
Incubation
Rational problem-solving model
Fluency, flexibility, and originality
Brainstorming
Convergent versus divergent thinking
Deductive reasoning
Inductive reasoning
Flow
Instructor’s Manual with Overheads to accompany Copyright ©2012 Pearson Education,
The Mind and Heart of the Negotiator 5/e (Thompson)  Inc. publishing as Prentice Hall

8. Copyright ©2012 Pearson Education, Inc. publishing as Prentice Hall
CHAPTER 8
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright ©2012 Pearson Education, Inc.  publishing as Prentice Hall