Decision making assignment
Kate39
assignment.docxWe’re studying the “right way” negotiations could or should go. But consider why they so rarely do...
#1. Reflect on why so many negotiations are sub-optimal, despite access to information and best practices.
· Yourself and others, from local scale to international
#2. What images and role models affect how we develop interaction skills?
· Name some positive role models, and some negative ones.
#3. What’s the outlook for this? How to influence progress?
· Yourself and others, from local scale to international
Include topic # in the subject header , 1 page is ok.
Introspection and insightfulness are more important than spelling or grammar.
Resource:
Negotiation…Occurs whenever parties’ preferences are not identical
So, virtually all the time!
Is always more complicated than individual decision making
And usually more complicated than game theory could model
So, even just one person improving their rationality helps
Quality of outcomes rises with quality of process
System 2, decision-analytic approaches to negotiation
Each party’s alternatives to negotiating an agreement (plan A)
BATNA = plan B
Reservation point or indifference point = edge between plan A and B
Each party’s interests
Principles, rather than simple positions
And their relative importance (in terms of utility, rather than simply $)
Claiming value in negotiation
Positive bargaining zone: overlap within reservation points
Will contain the one or many settlement point(s)
Negative bargaining zone: no overlap
No settlement is better than BATNAs, so none made
Creating value – seeking “win-win” outcomes
Trade on issues of differential value
Create value through bets
“Contingent contracts” can neutralize different predictions
Allow biased beliefs to contribute to value, rather than detract
Reveal bluffs and false claims
Establish incentives for performance/results
The tools of value creation
Build trust, and share information
Strategic disclosures are often reciprocated
Looks for ways to “expand the pie”
Ask questions: try to listen more than you speak
Negotiate multiple issues simultaneously
Embrace the complexity of the deal’s potential
Make multiple offers, or package deals
Try for post-settlement improvements
Pareto efficiency : if either can still gain, good for both
Thorough preparation is crucial
Ten prep questions are a good way to start
