Negotiations

Approach 1: Balance of power – the stronger side makes the decisions. No need for
compromise.
Approach 2: Need for compromise -

The relationship and the outcome are both important = collaboration

The relationship is important, but the outcome isn't= accommodation
The relationship and the outcome are both unimportant = avoidance
The outcome is important, but the relationship isn't = competition

Why do people negotiate? (To achieve something new, importance of agreement)

What are the threats involved in negotiating? (Need to compromise)

You must understand the intricacies of the problem, make confident decisions despite
complexities, be able to justify your decisions conduct the nogotiations in such a way
that you will be satisfied with the consequences)
BATNA-best alternative to a negotiated agreement

Possible adverse effects

Do people always behave rationally? Are they always guided by utility values?

What's more attractive, a big slice out of a small pie, or a small slice out of a big pie?

Form, setting, venue

Importance of accurate information,

Independent unrestricted decision making versus restricted or limited decision
making.
Unilateral/bilateral/multilateral negotiations

Stages:
1. preparation (concessions and BATNA)
2. strategy development (what do the parties really want, interests vs. positions,
exploit the differences between the parties, long and short term interests)
3. opening statements
4. building understanding
5. bargaining
6. closing (split the difference)

Simulation: Jim wants to go on vacation but his boss wants him to handle a deal
urgently, because the person in charge of it is sick.
What are the alternatives?

Win/lose
Zero sum

What are your limits?

Zone of possible agreement

What's the effect of the opening offer on the final result?

Should you open first?

Players' offers are calculated by means of the so-called Negotiation Decision Function
(NDF), a function of time that determines a player's strategy. Strategies can be linear
or non-linear, the latter being either conceder, if the player is willing to concede a lot
in the early phase of negotiation, or boulware if a player is willing to concede
considerably only when its time deadline is approaching.
How can you recognize flexibility?

Loss vs. gain

Priorities

Techniques in integrative negotiations:

Expanding the pie

Trade concessions across different issues
Add nonspecific compensation
Risk management
Bridging gaps
Brainstorming
Choosing alternatives

Tactics:
Full open truthful exchange
Partial open truthful exchange

Do differences in personal attributes affect style or outcome?

gender, age, race, cultural background,

Self efficacy
Why is it easier to negotiate with someone you have no previous relationship with?
(Better preparation, higher targets, no discomfort, less expectations for reciprocity)

Sources of power: internal, external, social, personal,

Ultimatums and threats