Essay About Use Log-Rolling And Use Contingency Contracts

Negotiation
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Pre-Negotiation
Assess your BATNA
Calculate your Reservation Value
Calculate other party’s BATNA and Reservation Value
Calculate the Zone of Possible Agreement or ZOPA
Try to create value by:
Identifying multiple interests
Creating a scoring system
Calculating Package Reservation Value
Identify other party’s multiple interests
Identify the possible biases in you
Biases of mind
Fixed Pie Bias
Vividness Bias
Non-rational escalation of commitment
Susceptibility to framing
Biases of Heart
Conflicting motivation
Egocentrism
Self-serving attribution
Regret Aversion
Overconfidence or irrational optimism
Confronting the biases in you
Use “System 2” thinking
Learn through use of analogies
Adopt the outsider lens
Defending yourself against strategies of influence
Prepare systematically
Create a scoring system
Eliminate the following Blind Spots if possible
Parties away from table
Other Side’s Decision Rules
Other Side’s Information Advantage
Strength of competition
Future
Smart alternatives to Lying
Change reality to make the truth more bearable
Eliminate constraints that make you lie
When not to negotiate
When time is money
When your BATNA is bad and everyone knows it
When negotiating sends the wrong signal
When relationship might suffer
When it is culturally inappropriate
When your BATNA beats their best offer
During Negotiation
If they make an initial offer:
Ignore the anchor
Separate Information from Influence
Avoid dwelling on the anchor
Make counteroffer then propose moderation
Give time for moderation without him losing face
If you like the initial offer:
Accept reluctantly
Haggle further more
Give something back
Think again and ask questions
When making an initial offer:
Keep entire ZOPA in play
Provide Justification for your offer
Set high but realistic aspirations
Consider the context and the relationship
Effective Haggling Strategies
Focus on other party’s BATNA and RV
Avoid making unilateral concessions
Be comfortable with silence
Label your concessions
Define what it means to reciprocate
Make contingent contracts
Be aware of effects of diminishing rate of concessions
Means of Creating Value
Use Log-Rolling or adding issues to increase size of pie on table
Try to achieve Pareto efficiency
Make package offers
Leverage differences of all types to create value
Confronting the biases in others
Incorporate consequences of their biases in your strategy
Help others to be less biased
Calibrate info provided by others
Use contingency contracts to resolve conflicts
Be aware of problem of bounded ethicality
Strategies to Influence the other party
Highlight their potential losses rather than gains
Break down their gains and club their losses
Employ “Door in Face” Technique
Employ “Foot in Door” Technique
Use the power of justification
Use the power of social proof
Make token unilateral concessions
Use reference points to make your offer seem reasonable
Defending yourself against strategies of influence