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BATNABiggest Source of Power in a Negotiation
ZONE OF POTENTIAL AGREEMENT (ZOPA) Biggest Source of Power in a Negotiation
ANCHORING “People with incomplete info make estimates starting from an initial value (anchor) and adjusting to provide a final answer. The adjustments are usually inadequate. Irrelevant (as well as relevant) numbers can serve as anchors and influence perception of the bargaining zone.”Does Making First Offer lead to a better outcome? –YES, the more certain you are of counterpart’s BATNA!! –Not necessarily if uncertain. Receiving First Offer –Anchor minimized if counter focuses on info inconsistent with first offer (i.e., discount it, ignore it) – focus on counterpart’s BATNA or r, your target price Anchor maximized if counter focuses on info consistent with first offer (the anchor), your BATNA.
MULTI-ISSUE (INTEGRATIVE) BARGAININGThe Benefit of Differences INTEGRATIVE BARGAINING TIP-OFFS· Can the Negotiation have >1 issue?· Is there openness to discussion? · Do parties have different preferences across issues?
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