MGT461H5 Chapter : Distributive Bargaining.doc
Document Summary
There are at least two reasons that an ambitious opening offer anchoring effect the observation that people who make decisions under uncertain conditions are influ- enced by initial starting numbersis advantageous. First, it gives the negotiator room for movement and therefore allows him or her time to learn about the other party"s priorities. Two disadvantages of an ambitious opening offer are that (1) it may be summarily re- jected by the other party, and (2) it communicates an attitude of toughness that may be harmful to long-term relationships. There are several good reasons for adopting a flexible position. First, when taking different stances throughout a negotiation, one can learn about the other party"s targets and perceived possibilities by observing how he or she responds to different proposals. Negotiators may want to establish a co-operative rather than a combative relationship, hoping to get a better agreement.
