Negotiation Subprocesses. Kei Sugimoto Iakovos Vazaios. 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.
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Negotiation Subprocesses Kei Sugimoto IakovosVazaios
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
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
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.
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.
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
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