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decision behavior

1. Judgment in Managerial Decision Making 8e Chapter 10 & 11 Negotiator Cognition

2. Game Theoretic Approach to Negotiation Provides precise prescriptive advice Relies on describing all outcomes Assumes all parties are rational

3. A Decision-Analytic Approach to Negotiation Describes the behavior of counterparts Prescribes advice from counterpart behavior Analytical framework Alternatives to negotiated agreement Each party’s set of interests Relative important of interests

4. Alternative to a Negotiated Agreement Best Alternative to Negotiated Agreement Reservation point Many accept offers below BATNA

5. The Interests of the Parties Identifying counterpart interests is key Focusing on deeper interests Understanding the importance of issues

6. Creating Value in Negotiation Many negotiations involve multiple issues Value creation 1978 Camp David Accords Trading on issues to create value Creating value through contingent contracts

7. The Tools of Value Creation Build trust and share information Ask questions Strategically disclose information Negotiate multiple issues simultaneously Make multiple offers simultaneously

8. Key Preparation Questions What is your BATNA? What are the issues? How important is each issue? What is your counterpart’s BATNA? Are there value creation opportunities? Is there disagreement about predictions? How will you obtain information?

9. Common Mistakes of Negotiators The fixed pie myth Framing of negotiator judgment Escalation of conflict Overestimating your value Self-serving biases Anchoring biases

10. Creating Value 1: The Interests of the Parties Identifying counterpart interests is key Focusing on deeper interests Understanding the importance of issues

11. Creating Value 2: Give and Take on the basis of .. Many negotiations involve multiple issues Value creation 1978 Camp David Accords Trading on issues to create value Creating value through contingent contracts

12. The Mythical Fixed Pie of Negotiation Assumption that interests directly conflict Perception of negotiations as win-lose Devaluation of counterpart concessions

13. The Framing of Negotiator Judgment Lead others to positively frame Challenge negatively framed negotiators Mediators should promote positive frames

14. Escalation of Conflict Examples MLB Prior prices influence escalatory tendencies Announcing one’s position Preventing the escalation of conflict Avoid eliciting firm statements Work around rigid positions

15. Overestimating Your Value in Negotiation Overestimation of holding firm Overestimation of acceptance probability Appropriate calibration promotes success Limiting overestimation Gain more situational knowledge Seek third-party objective assessments

16. Self-Serving Biases in Negotiation Biased perceptions of fairness Biased information processing Role-biased predictions of judge rulings Supporting arguments considered more important Social dilemmas Fishing Climate change Limiting self-serving biases

17. Anchoring in Negotiations Anchoring to arbitrary prices Anchoring to first offers Ambiguity enhances anchoring effect Precision enhances anchoring Focus on your goals

18. The Five Strategies W-W: Collaboration W-L: Compete L-W: Accommodate L-L: Avoid WL-LW: Compromise If task is highly important: Do not Accommodate or Avoid If Relationships are highly important: Do not Compete If Time is extremely scarce: Do not Collaborate If Others’ power is high: Do not compete or Avoid