MGRL-3105 Chapter Notes - Chapter 2: Best Alternative To A Negotiated Agreement, Reactive Devaluation, Situation Awareness
4 Feb 2020
School
Department
Course
Professor
Document Summary
Failure to assess reservation points can lead to two unfortunate outcomes: negotiators may agree to an outcome worse than their batna, negotiators may reject an offer better than their batna, to avoid this, follow these steps . Evaluate each alternative (best most valuable alternative should be selected to represent your batna) Salient numbers, figures, or values that appear to be valid but have no basis in fact. Sunk costs--money that has been invested and that is, for all practical purposes, irrecoverable. Single-issue negotiations are purely fixed-sum: by identifying other issues, negotiators can create integrative potential. Issue alternatives: wise to identify several alternatives for each issue. Risk and uncertainty: most people are risk-seeking when it comes to losses and risk-averse when it comes to gains, reference point defines what a person considers to be a gain or loss. Strategic risk: refers to the riskiness of the tactics that negotiators use at the bargaining table.
