Negotiation Myths

1
Negotiation Myths

• Great negotiators are born
• Experience is a great teacher
• Good negotiators routinely take risks
• Good negotiators rely on their intuition

2
Characteristics of Negotiation

• Two or more parties
• Conflict of interest
• Believe better deal is possible
• Prefer searching for agreement
• Expect give and take
• Manage tangibles and intangibles

3
Distributive Bargaining

• Prime objective maximize value of this deal

4
Contract zone in bargaining
A
B
I
I
A
B
T
T
B
A
R
R
I initial where you start T target your
goal R resistance the point you wont go
beyond
5
Contract zone in bargaining
A
B
I
I
A
B
T
T
B
A
R
R
I initial T target R resistance Negative
contract zone
B
A
I
I
A
B
A
B
T
T
R
R
6
Some things to note

• Opening offer
• More extreme (but not too extreme)better final
  price
• Opening attitude
• Cooperative/competitive
• Keep matched with opening offer
• Concessions
• Reciprocal
• Decreasing in size
• Cultural differences

7
Contract zone in bargaining
A
B
I
I
A
B
T
T
B
A
R
R
I initial T target R resistance positive
contract zone negative contract zone
B
A
I
I
A
B
A
B
T
T
R
R
8
Two Important Tasks

• 1) Discover opponents resistance point
• 2) Influence opponents resistance point

9
Distributive Bargaining

• 1) Assess opponents outcome value costs of
  terminating negotiations
• indirect
• direct
• 2) Manage impression of your position
• screening
• selective presentation

10

• 3) Modify opponents perception of his/her own
  position
• 4) Manipulate actual costs
• disruptive action
• ally with outsiders
• scheduling negotiations

11
Distributive Bargaining

• Push for settlement close to opponents
  resistance point
• Get opponent to change his/her resistance point
• Get opponent to change a negative settlement
  range to positive by moving resistance point
• Get opponent to think settlement is best that is
  possible

12
Hardball Tactics/Dirty Tricks

• Good guy/Bad guy
• Highball/Lowball
• Bogey
• The Nibble
• Chicken
• Intimidation
• Aggressive behavior

13
Dealing with Dirty Tricks

• Ignore
• Discuss
• Respond in kind
• Co-opt