BU288 Lecture Notes - Lecture 9: Escalation Of Commitment, Job Interview, Negotiation
Document Summary
Negotiation: a decision-making process among interdependent parties who do not share identical preferences to determine the allocation of resources. Belief that conflicting interests exist: there"s a lot more in common than differences. Parties engage in communication to divide and exchange resources. Parties make offers and counteroffers: give some information and not other. Compromises are possible: what compromises you"re willing to and not willing to make. Parties have incomplete knowledge about each other"s interests. How to negotiate: assess personal goals, consider other"s goals, develop strategy. Identify target and resistance points: target: what one would like to achieve, that"s what you want to achieve in the negotiation (the what, resistance: lowest outcome acceptable, the lowest possible outcome; the walk-away point; the deal. Identify batna will fall apart; no deal: best alternative to a negotiated agreement. If this deal falls apart what"s your next best option. Rent an apartment this backup plan helps you determine your resistance point.
