Manual Negotiating Rationally

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How to Master the Art of Negotiation

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Negotiating rationally

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Reply 1 Like Follow 8 hour ago. Martin Borton Just select your click then download button, and complete an offer to start downloading the ebook. Reply 17 Like Follow 8 hour ago. Ida Kelvin lol it did not even take me 5 minutes at all! XD Reply 13 Like Follow 8 hour ago. Enabling JavaScript in your browser will allow you to experience all the features of our site. Learn how to enable JavaScript on your browser. NOOK Book. In Negotiating Rationally , Max Bazerman and Margaret Neale explain how to avoid the pitfalls of irrationality and gain the upper hand in negotiations.

For example, managers tend to be overconfident, to recklessly escalate previous commitments, and fail to consider the tactics of the other party. Drawing on their research, the authors show how we are prisoners of our own assumptions. They explain how to think rationally about the choice of reaching an agreement versus reaching an impasse. A must read for business professionals. Bazerman is the J.

  • Negotiating Rationally!
  • ISBN 13: 9780029019863!
  • Negotiating Rationally - Margaret A. Neale, Max H. Bazerman!

Neale is the H. They are coauthors of Cognition and Rationality in Negotiation. While many people think of negotiation as something that takes place only between a buyer and a seller or a union and management, in its various forms, negotiation is used every day to resolve differences and allocate resources. Some negotiations are face-to-face; others take place over time through sequential decisions between competitors. In business, millions of negotiations happen every day, often within the same company. Think of all the times you negotiate.

What could be more central to business than negotiation? And what could be more central to successful negotiation than casting off your illusions about it and, henceforth, negotiating rationally and effectively? This book will teach you how to do just that. Negotiating rationally means making the best decisions to maximize your interests.

However, we are not concerned with "getting to yes. Negotiating rationally means knowing how to reach the best agreement, not just any agreement. What we've learned will help you avoid decisions that leave both you and those you negotiate with worse off. All executives have pervasive decision-making biases that blind them to opportunities and prevent them from getting as much as they can out of a negotiation. They include the following: 1. Irrationally escalating your commitment to an initial course of action, even when it is no longer the most beneficial choice 2.

Assuming your gain must come at the expense of the other party, and missing opportunities for trade-offs that benefit both sides 3. Anchoring your judgments upon irrelevant information, such as an initial offer 4. Being overly affected by the way information is presented to you 5.

Negotiating rationally

Relying too much on readily available information, while ignoring more relevant data 6. Failing to consider what you can learn by focusing on the other side's perspective 7. Being overconfident about attaining outcomes that favor you Keep these seven factors in mind as you consider the following example. In American Airlines introduced its frequent-flier program, arguably the most innovative marketing program in the history of the airline industry.

Business fliers or anyone else who flew frequently could earn miles for the flights they took and redeem those miles for travel awards.


Following American's lead, every airline in the industry soon launched its own frequent-flier program. Increasing the competition further, each company soon offered double miles to their most frequent passengers and even more miles for hotel stays, car rentals, etc. Soon, the benefits required to remain competitive inflated out of control and resulted in tremendous liabilities.

How could the airlines get out of this mess? One possible answer comes from a similar competitive war that took place in the United States auto industry in All three U. The rebate each company offered swiftly escalated. As soon as one manufacturer raised its offer, the rest followed, and the profits of all three companies plummeted.

Each then added the option of discount financing for their customers as an alternative to a rebate. Again, the competition was fierce.

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It reached a point where U. It takes no business sense to know that selling more can't make up for selling at a loss! How could any one company escape this deadly spiral without losing market share to the other two? He told the press that all three companies' programs were scheduled to expire in the near future and Chrysler had no plans to continue; however, if either of the other two continued their programs, Iacocca would meet or beat any promotion offered.

What was his message to Ford and GM? Chrysler was proposing a cease-fire if the others cooperated, but threatening to retaliate if they continued to fight. What if United or American Airlines had made an announcement like Iacocca's before Delta announced triple miles? Delta would most likely have realized there was nothing to gain by the triple-mile promotion. Yet, the airlines failed to negotiate rationally because, unlike Iacocca, they did not consider the possible decisions of their competitors, Iacocca developed a negotiation strategy that explicitly attempted to manage his competitor's decisions.

Mark Lacek, director of business-travel marketing at Northwest Airlines lamented the triple-mileage promotions in "It's suicide marketing. We will guide you through a variety of thought processes to minimize the type of "competitive irrationality" just described in the airline example. Now let's be honest.