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• Player intelligence and rationality are extreme requirements for successful solutions.

Closing a Deal

• Provide alternatives (menu).
• Assume the close (paperwork).
• Split the difference.
• Exploding offers (clock).
• Sweeteners (give a free pen).

Hardball Tactics

• Good cop/bad cop involves a team roll play dynamic.
• Lowball/hardball involves exaggeration to set unrealistic expectations.
• Bogey involves misdirection by pretending an issue is important when it is not.
• Nibble includes asking for a sweetener, a small concession after the deal is set.
• Intimidation/agro involves intimidation tactics.
• Snow job involves overwhelming the other party with excessive information to confuse them.

Responding to Hardball Tactics

• Ignore them to deflate the bravado.
• Discuss them to name and shame.
• Respond in kind if you can play hardball.
• Co-opt the other party to win friends and influence people.

Selective Negotiation

• Focus on choosing which battles to fight during a negotiation.
• Concentrate on the most crucial issues.
• A car negotiation example includes focusing on the price rather than minor add-ons.

Anchoring Effect

• The first offer sets a mental benchmark that influences the rest of the negotiation.

Positive Bargaining Zone

• Overlap between the minimum a seller accepts and the maximum a buyer pays.
• For example, if a seller wants at least $15,000 for a car, and a buyer is willing to pay up to $17,000, a deal is possible between those numbers.

Negative Bargaining Zone

• This happens when interests do not meet between parties.
• For example, the seller wants at least $20,000, but the buyer is only willing to pay up to $18,000.

Precision Price

• Using specific numbers to make an offer appear calculated and credible.
• For example, $19,875 instead of $20,000 indicates research and seriousness.

Indirect Assessment

• Involves gathering information indirectly without asking direct questions.

Mutual Beneficial Trade

• Trade that involves mutual benefit where almost always gains when trading.

Cutting Costs for Compliance

• Reducing expenses associated with meeting agreed-upon terms.

Integrative Negotiation

• Free flow of information.
• Understand other negotiators' needs and objectives.
• Stress common ground and minimize differences.
• Search creativity to find solutions that meets both parties needs.
• This includes negotiations that include more than one issue.
• It is possible to add more issues to the mix.
• There is a variance in the preferences across the issues.
• Renegotiation will likely happen.
• Claiming value in integrative negotiation, also known as distributive negotiation, involves negotiators carving out their share of resources.

Value Claiming

• Disruptive negotiating to claim as much value as possible - often win-lose.

Value Creating

• Integrative negotiations which expands the pie for mutually beneficial outcomes - win-win.

Negotiator's Dilemma

• Is the tension between competitive and cooperative behaviors.

Creating Value

• The creation of value should come before claiming value.
• Teamwork is more efficient when it is focused on collaboration.
• Claiming requires strategies that need to be introduced carefully into bargaining.

Interest

• The underlying concerns, needs, desires, or fears, that motivate a negotiator

Positions

Include:

• Substantive interest (economic or financial).
• Process interest (how the dispute is settled).
• Relationship interest (reputation).
• Principle interest (fairness and ethical considerations).

Observations on Interest

• Almost always more than one issue of importance.
• Interests change.
• Uncover interests by asking questions.

Generating Alternative Scenarios

• Expand the pie to increase resources for both parties.
• Logroll (trade interests): trade concessions on issues of differing importance. Differences in risk, time preference, and expectation/belief are all different ways to logroll.
• Non-specific compensation: one party's needs are met and the other is compensated in a way disconnected to the issue.
• Reduce costs for compliance to get the other party to agree.

Find a Bridge Solution

• Create a new solution satisfying both parties.

How to Evaluate Alternatives

• Reduce the set.
• Incorporate quality, standards, and acceptability..
• Agree to criteria in advance.
• Justify personal preferences.
• Consider the influence of intangibles.
• Use a subgroup/committee.
• Take a time out/cool off.
• Exploit different ways to logroll.
• Keep decisions conditional on final agreement.
• Minimize formality

Strategies

• Common goals.
• Motivate and cooperate.
• Focus on clear communications.

Ultimatum Game

• If offer rejected, both players get nothing.

War of Attrition

• Players compete by outlasting each other to win
• The longer you wait, the more it hurts"

Negotiation Planning Guide

• Define goals in negotiating.
• List related major issues.
• Define the relative importance of each issue.
• Define interests.
• Define alternatives (BATNAS).
• Define limits- know when to stop.
• Describe your understanding of the other party's goals, issues, and resistance points.
• Set targets and an opening bid.
• Assess the social context of the negotiation.
• Outline how to present the issues to the other party.

Defining Issue

• Analyze all possible issues.
• Use previous experience.
• Incorporate research.
• Consult with experts.

Defining Interest

• Substantive: tangible materials or financial interest.
• Process: negotiation fairness and efficiency.
• Relationship: maintain trust and respect.
• Principle interest: uphold ethics, morals, or ideologies.

Defining Limits and Alternative

• Resistance points.
• Alternatives (outside options).

Settling Targets and Openings

• Target point: where we want to end up.
• Specify reasons for packaging issues effectively.
• Set standards to understand tradeoffs.

Asking Price

• Best we could hope for.

Econographics

• Goal is to understand the differences in people.
  • Fairness
  • Patience
  • Risk preferences

Six Components of Econographics

• Generosity (fairness and cooperation).
• Punishment (deterrance of unfair behaviors).
• Inequality aversion (fairness and cooperation).
• WTP (value).
• WTA (willingness to accept)(value).
• Uncertainty (risk).
• Overconfidence (risk).

Assessing Constituency and Social Context

• Field analysis.

Analyzing the Other Party

• Resources, issues, bargaining mix.
• Interests, resistance point, alternatives.
• Authority .
• Strategy and tactics.

Planning Issue Presentation and Defence

• Have supporting facts
• Supporting experts/assistance.
• Make Comparisons with similar negotiations.
• Assess the other party likely position and how to best communicate.

Protocol

• Note taker.
• How to de-brief with if possible.
• Keep a journal.

Moving From Plan to Action

• Plan/pattern to integrate major targets, policies, and action sequences into a cohesive whole.

Tactics

• Moves designed to create stability, continuity and direction

Dual Concerns Model

• Involves concern for self.
• As well as for others (extent to which you care about others outcomes). Includes self/others- focus on achieving your goals or goals of others.
• Helps to prioritize dimensions of settlements.

Avoidance

• non-engagement

Engagement

• competition, collaboration, or accommodation

Bargaining Mix

• Combination of issues, terms, and conditions.

Linkage

• connecting or tying together issues.

Focal Issues

• Key points or central topics with primary concern.

Approaches to Ethical Reasoning

• End result ethics: Action rightness is determined by consequences and happiness promotion.
• Duty ethics: Action rightness follows obligations and universal principles..
• Social contract ethics: Action rightness follows community norms.
• Personalistic ethics: Action rightness follows conscience

In Negotiating terms

• End result ethics involves doing whatever it takes to produce the outcome.
• Duty ethics includes avoiding any sort of subterfuge
• Social Contract ethics bases choices on behaviors appropriate in your community.
• Personalistic ethics consults one's conscience about being dishonest.

Interpersonal Trust

• A generalized expectancy that the word or statement of another can be relied on.

Recall

• High trust begets high trust

Self Monitoring

• The extent to which people are responsive to social cues.

Machiavellianism

• Tendency to be cynical and distrustful of others motives; desire for control/status

Face-threat Sensitivity

• Level of sensitivity to losing/saving face.

The Big Five Personality Factors

• Extroversion: sociable, assertive, talkative.
• Agreeableness: flexible, co-operative, trusting.
• Conscientiousness: responsible, organized, achievement oriented.
• Emotional stability: secure, confident not anxious.
• Openness: imaginative, broad-minded, curious.

Categories of Marginally Ethical Negotiating Tactics

• Traditional competitive: not disclosing your walkaway, making inflated offer.
• Emotional manipulation: faking emotions.
• Misrepresentation: distorting information.
• Inappropriate information gathering: bribery, infiltration, spying.
• Bluffing: using insincere threats/promises.
• Omission: failing to disclose information.
• Commission: lying about the common value issue.
• Value: what they want.

Cognitive Ability

• General mental capability to reason, plan, solve problems, and learn.

Incremental Theorist

• Person who believes negotiation ability is malleable.

Team Production and Investment

• Agreements are the beginning of a relationship.
• Actions after agreement also determine payoffs. There is no agreement.

Moral Hazard

• When one contract party may act at odds with the other party's desires, especially when actions are non-contractible.

Maintaining Status Quo

• Admonish the other truthfully to maintain name recognition.

Projection

• Tendency to attribute one's own thoughts/feelings to the other party.

Frame

• A perspective or lens.