DANCEST 805 Lecture Notes - Lecture 24: Random Assignment, Norther, Rationality
Document Summary
Individuals often behave irrationally in systematically predictable ways that are not easily captured within rational analyses. If we fail to reach an agreement we must determine out best alternative to a negotiated. Agreement (batna: value of our batna provides a lower bound for determining the minimum outcome we require of a negotiated agreement, we should prefer any negotiated agreement that provides more value to us than our. Create value, increasing the amount of total benefit available. Save your compromising skills for things really important for you and give in to compromises you don"t care about as much: values can also be created through the development of bets, or contingent contracts. Negotiator cognition: the decision-analytic approach to negotiation suggests that it is desirable for parties to strike an agreement whenever a positive bargaining zone exists. Why do negotiators frequently fail to settle: the mythical fixed pie of negotiation:
