Negotiation Subprocesses

1. Negotiation Subprocesses Kei Sugimoto IakovosVazaios

2. Negotiating Rationally: The power and impact of negotiator’s frame • Decision making process • Parties decide what each will give and take • To reach a “good” agreement. • No agreement could be better Rationality refers to the decision that maximizes the negotiator’s interest

3. The framing of negotiation • 30$ example • Have you ever purchased an item because “it was too good of a deal to pass up”? • Value to the quality of the transaction What we get for what we pay

4. The framing of risky Negotiations • The way in which information is framed to the negotiator can have a impact on his/her preference for risk. • The way the problem is framed or presented is playing an important role for the decision. • Give the example with the automobile manufacturing co. and discuss.

5. The framing of risky Negotiations • Negative frame • Positive frame • The negotiator behaviors may arise from positive and negative frames within the context of the interaction.

6. The Endowment Effect • Owning something changes the nature of the owner’s relationship to the commodity • After an attachment is formed, the cost of breaking that attachment is reflected in the higher price • Understanding  Add value • Coffee mug example

7. Conclusion • Framing  Negotiator tactics • The framing effect suggests that to induce concessionary behavior from an opponent • An important component in creating good agreement • To avoid the pitfalls of being framed your negotiating opponent