BUS 485 Chapter Notes - Chapter 2: Reactive Devaluation, Best Alternative To A Negotiated Agreement, Reservation Price

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 485
• Professor: mitra kiamanesh

Document Summary

Chapter 2: preparation: what to do before negotiation. Depending on what the other party decides, fixed-pie perceptions can lead to a battle of wills (both parties on attack mode); mutual compromise (both parties are soft); or a combination of attack and capitulation. The common assumption among all three approaches is that concessions are necessary by one or both parties to reach an agreement. The fixed-pie perception is almost always wrong; thus, choosing between capitulation, attack, and compromise is not an effective approach to negotiation. A more accurate model of negotiation is to approach it as a mixed-motive decision-making enterprise. Mixed-motive enterprise - negotiation involves both cooperation and competition. Effective preparation encompasses three general abilities: self- assessment, other assessment, situation assessment. Self-assessment (important questions a negotiator needs to ask themselves) The underaspiring negotiator opens the negotiation by requesting something that is immediately granted, resulting in a regrettable state of affairs known as the winner"s curse.