MHR 721 Chapter Notes - Chapter 2: Prospect Theory, Bounded Rationality, Angry Boys
16 May 2017
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2. 2 mangers and their not so rational decisions. Intuitive (system 2): refers to a process that is described as fast, automatic, effortless, and often emotional. Emotions can obstruct a negotiated agreement: emotions may divert our attention from substantive matters, if we or others are angry or upset, both of us will have to deal with the hassle of emotions. John went to ask the jeweler how is it for the ring and he said 800 but john heard him say to another couple its 400. The jeweler saw mary excitement and raised the price: thinking may take a subordinate role to feeling, emotions are desirable for falling in love, but they make it difficult to think precisely in a negotiation. Negotiators (cid:272)o(cid:373)(cid:373)o(cid:374)ly are e(cid:374)(cid:272)ouraged to (cid:862) (cid:449)allo(cid:449) your pride,(cid:863) (cid:862)do (cid:374)ot (cid:449)orry,(cid:863) a(cid:374)d (cid:862)keep a straight fa(cid:272)e. (cid:863) Negotiators can be affected in many different ways.
