PPE 11:16

PPE 11:16 - Common problems in negotiation - lose-lose...

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Common problems in negotiation - lose-lose negotiations – leaving money on the table - Settling for too little – winner’s curse - Walking away Why are people bad negotiators? - absence of relevant and diagnostic feedback o search for confirming information o egocentrism Myths - Good negotiators are born, not made - Experience is a good teacher Negotiation involves the cell of a dosage input Key negotiation principles - Best alternative to a negotiated agreement (BATNA) o Dosagen’s BATNA is 17 million o Synertec’s BATNA is 25+ Don’t ever reveal your BATNA - Reservation price o This is your bottom line o The point at which you are indifferent to whether you achieve a negotiated agreement or walk away. Beyond this reservation price, you prefer no agreement Reservation price is equal to your BATNA +/- other issues that make you want to do the deal E.g. opportunity costs, switching costs, ego, miscellaneous preferences Learn your opponents’ reservation price, if possible
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This note was uploaded on 01/14/2012 for the course PPE 253 taught by Professor Mellers during the Fall '11 term at UPenn.

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PPE 11:16 - Common problems in negotiation - lose-lose...

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