Standards and Norms
The most common tactic for closing a negotiation is a standard allocation formula.
What is splitting the difference?
These are used as symbols of good faith, and are common in some cultures in the world.
What are gifts and favors?
When negotiators focus on the competitive aspect of negotiation at the expense of other factors, they are committing this bias.
This acronym describes the overlap between the buyer’s and seller’s bottom lines.
What is ZOPA?
What are distributive issues?
People want to appear rational and consistent; Shell names this psychological tendency this way.
What is the consistency principle?
“We warm to people who are like ourselves” names this principle.
What is the similarity principle?
A proposal that meets your goals AND is a good option for the other side builds on this/these.
What is common ground, or what are shared interests?
This process trades off between multiple issues to "make the pie bigger".
What is integrative bargaining?
Building rapport is part of this step/stage of negotiation.
What is step 2, information exchange?
This term refers to the skillful use of standards, norms, and precedents to gain advantage or protect a position.
What is normative leverage?
The relationship expectation that positive moves should be returned.
What is the norm of reciprocity?
This common human limitation--seeing the world through the lens of our own beliefs--can make it hard to discover the other party's goals.
What is confirmation bias?
In this quadrant of the situational matrix, the relationship is secondary to the stakes, as seen in a house sale between strangers.
What are competitive transactions?
These types of issues represent mutual gains; both parties want the same outcome, and there is no conflict.
What are compatible issues?
When prior statements trap a negotiator into appearing hypocritical, Shell calls this kind of pressure a version of this trap.
What is a consistency trap?
At the bargaining table, watch out for people who make small concessions and then ask for much bigger ones in return. Similarly, beware of those who reveal a little information of their own and then ask you to disclose your entire financial position. Such negotiators are engaging in these.
What are reciprocity traps?
What is the decision maker?
This acronym describes the overlap between the buyer’s and seller’s bottom lines.
What is ZOPA?
In this quadrant of the situational matrix, the relationship is secondary to the stakes, as seen in a house sale between strangers.
What are competitive transactions?
The best standards to rely on in a negotiation are these.
What is accepted by the other party?
In between being strangers and friends, these are based both on a degree of trust and reciprocity and on the prudent assumption that both parties are looking after their own best interests.
What are working relationships?
Identifying interests that might interfere with agreement can provide an answer to this question, and can ultimately help you reach your goals in a negotiation.
Why might the other side say no?
This quadrant of the situational matrix is defined by low outcome stakes and a limited future relationship.
What is tacit coordination?
Two advantages, and two disadvantages, of using agents.
What are:
Knowledge/expertise, access to people/marketplace, reduced workload, emotional distance;
Increased costs, Conflict of interests, Loss of control