MGT 365 Lecture Notes - Lecture 7: Time Preference, Risk Aversion
13 Sep 2018
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Document Summary
Value may be created in numerous ways: heart of the process lies in exploiting differences that exist between negotiators, key differences among negotiators include: Negotiators seldom value all items in a negotiation equally. Finding compatibility in different interests is often the key to unlocking the puzzle of value creation. Ppl differ in evaluation of what something is worth or the future value of an item. created/avoided can create opportunities for parties to get together. How parties see the present & what"s possible that needs to be. Ppl differ in amount of risk they"re comfortable assuming: risk tolerance, time preference: Negotiators frequently differ in how time affects them. One negotiator may want to realize gains now. Other may be happy to defer gains into the future. Other has no need for any change in status quo. Differences in time preferences have potential to create value in a negotiation. In that case serve as barriers to reaching agreement.
