BU288 Lecture Notes - Lecture 3: Best Alternative To A Negotiated Agreement, Nibble, Cash Flow
Document Summary
Look at what you want to get, and what they want to get. We"re goi(cid:374)g to (cid:449)alk a(cid:449)a(cid:455) (cid:271)efore the(cid:455) take a (cid:271)ad deal. Convince other side why they want it. The more you know the more options you have. Errors: over confidence, or irrational escalation of commitment (tend to accept a deal that actually makes us worse off than no deal) E(cid:374)sure there is (cid:374)o o(cid:448)er (cid:272)o(cid:373)peti(cid:448)e(cid:374)ess (cid:894)the(cid:455) see it as a (cid:862)(cid:455)our loss is (cid:373)(cid:455) ga(cid:373)e(cid:863), fi(cid:454)ed pie idea: however, the pie can also be enlarged and potential value must be discovered. There is 2 anchors and bara should have told him to make a more reasonable offer, and their gap would have been smaller (midpoint is normally what occurs) Ppl act in emotional ways that are unreasonable. Reservation price: bottom line (cash flow they need) always know this. Distributive: must divide resources, determine how pile will be divided. Integrative: potential to expand the size of the pie.
