From the course: Complex Negotiation Tips
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Understanding psychological traps when negotiating
From the course: Complex Negotiation Tips
Understanding psychological traps when negotiating
- How would you answer this famous question? A bat and a ball together cost $1.10 in U.S. dollars. The bat cost one dollar more than the ball. How much does the ball cost? If you said 10 cents, you're like most people. Unfortunately, you're also incorrect. You took a cognitive shortcut. Psychologists tell us humans are cognitive Mizars. We have a lot to process and can't invest too much mental energy in every little thing so we rely on shortcuts and stereotypes to make many of our decisions. In negotiation, there are four common psychological shortcuts that can short-circuit your effectiveness. First, anchoring, is the tendency to be influenced by the first thing we hear. We use initial information, usually numbers, to guide our decisions. This is a strong cognitive bias. Research confirms that allowing the other party to make the opening price offer means they usually get the better deal. To avoid the…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.