CAOT 31 Lecture Notes - Lecture 26: Trump: The Art Of The Deal, Best Alternative To A Negotiated Agreement, Social Capital
28 Oct 2020
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Complex cognition task 7: quid pro quo (the art of the deal) 5 ) what are interc ultura l dif ferences in. Negotiation happens when parties need to reach a joint decision but have different preferences. Game theory mathematical models to analyze outcomes that will emerge in multi-party decision-making contexts if all parties act rationally. Define order in which players get to choose moves & attach utility measures of outcomes for each player to every possible combination of player moves. Analysis focuses on predicting whether or not players reach an agreement, and if reached, what the nature of that agreement will be. Advantages given absolute rationality, provides most precise advice available to negotiators. Disadvantages 1) relies on ability to completely describe all options and associated outcomes for every possible combination of moves in given situation; 2) requires that all players act consistently rationally. Decision-analytic approach to negotiations focuses on how people actually behave rather than how they should.
