MGCR 222 Study Guide - Final Guide: Pareto Efficiency, Reservation Price, Best Alternative To A Negotiated Agreement

• School: McGill University
• Department: Management Core
• Course: MGCR 222
• Professor: Ruthanne Huising

Document Summary

Negotiation is a process of communicating back and forth for the purpose of reaching a joint decision. It is an interpersonal decision-making process necessary whenever we cannot achieve our objectives single-handedly. Negotiations as mixed-motive: creating value, claiming value. = leveraging interests in order to improve the outcomes of both parties. Prioritize and weight your issues prior to negotiating. Where parties have different preferences across bargaining issues. Try to understand other person"s interests and when asked indicate yours Exploit differences in interests and relative weights. Propose multiple offers of equivalent value simultaneously. Pareto frontier: where one party cannot be better off without the other being worse off. Claiming value getting as much of the pie as possible. Negative bargaining zone: when reservation prices do not intersect. Distributive bargaining moves: assess and improve your batna, calculate your reservation point, assess the other person"s batna and associated reservation point, set high/realistic aspirations.