CAOT 31 Lecture Notes - Lecture 12: Best Alternative To A Negotiated Agreement, Game Theory, Reservation Price
28 Oct 2020
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Pros and cons: why is negotiating important, differences in cultures. Creating value, distributive vs. integrative bargaining, negotiator biases. Based on the idea that your gain means the other party"s loss. Your goal is to negotiate in such a way that when you reach an agreement, you have given up less than the other party. You agree on a deal in which the other party loses 250 euro while you lose 50 euro. Take the other party"s wants, needs, fears, and concerns into the equation. You and the other party lose an equal amount of money. Chapter 9 making rational decisions in negotiations. Game theory develops mathematical models to analyze the outcomes that will emerge in multiparty decision-making contexts if all parties act rationally. It predicts whether or not players reach agreement and of what nature that agreement will be. It provides the most precise prescriptive advice available to negotiators. It requires that all players consistently act in a rational manner.
