In this video, learn to construct your personal strategies for making the first offer in a complex negotiation. First-offer dynamics such as setting the bargaining mix and making initial concessions are different in complex negotiations as compared to single-episode negotiations.
- Think of the last two digits of your phone number. … Got it? … Now estimate how many countries from Africa … are in the United Nations. … Believe it or not, … your mind just related those two numbers in a powerful way. … If your phone number ends in a high number, like 97, … you will estimate a higher number in the second question, … like 65, but my phone number digits are much lower, 28, … so I'll estimate a lower number. … We just replicated a famous study … demonstrating the anchoring effect. … Whatever number you're primed with … prompts you to evaluate what follows from that perspective. … If you're prompted number is larger … you'll make a larger guess. … This is why many negotiation professionals … advise you to make the first offer. … Research proves that anchoring works. … You'll usually get a better economic outcome. … But if you want to build relationships … as well as make money, … come prepared with a strategic opening offer. … In a complex negotiation, price can't be negotiated alone. …
- Coordinating negotiations with multiple parties
- Maintaining long-term relationships
- Making multiple offers
- Being friendly and aggressive in negotiations
- Gender and negotiation