BUS 144 Lecture 6: The Negotiator’s Dilemma

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9 Feb 2017
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The Negotiator’s Dilemma
• The non-separability of integrative and distributive negotiations
• “Value that has been created must be claimed”
• Tactics that claim value can impede its creation
• Persuading, withholding information
• Approaches to creating value are vulnerable to claiming tactics
• Disclosing interests, priorities
Resolving the Dilemma
Prepare for integrative and distributive opportunities
• Analyze own & other’s interests; avoid fixed-pie perception • Know your BATNA, Res Price,
objective arguments
• Be “cautiously cooperative”: Balance cooperation and competition
Build trust: don’t jump in trusting immediately, but be open to a trusting interaction
• Ask for and share info about interests & priorities, but watch out for unilateral information
exchange
Take-Aways
• Two components of negotiations
• Distributive bargaining: Claiming value • Integrative bargaining: Creating value
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