Recall also that raiffas results had a caveat that

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Recall also that Raiffa's results had a caveat: that the "midway between opening offers" rough prediction did not generally hold where the midpoint feB outside the actual bargaining set. This may be because the extreme offeror necessarily had to make a dispropor- tionate number of, or disproportionately large concessions to reach agreement at aB. In the process, the apparent greed and manipula- tiveness may have tilted the psychological advantage to the other, more "reasonable" side. Thus in making the first counteroffer, one should take care that the midpoint between the offers is in the per- ceived bargaining set. SEQUEN CES OF OFFERS T~_J'~9l!('!p:ce in wllichone bargainer makes concessions can shape ll,~~_,~()U.!1t~[p.mJ~~ peIc~ptiQ.U§':, ~~patt~rnofconcess.iºJ!~. tl1ªt Cll2.parentlyconverges to a particular point maygi"e the impres.~ion thaÚhatÍ)Oint is the negotiator'sreservationvalll~. Similarly, the ne- gotiator who exaggerates the cost of her own concéssions'-anªmiI1j- rnlzes theb~nefits 6fher counterpart's movementalso'hopesto con- vjIlc;e him t() Dlªke "~g~ally" costly, and t~us larger, concessi0r:ts. same gamble is presented as a potentialloss. Thus, framing a proposal as a possible gain for one's counterpart is desirable when one seeks risk-averse behavior; and framing it as a possible loss seems sensible if risk-prone behavior is desired. (See Tversky and Kahneman, 1981, for a discussion of framing and Kahneman and Tversky, 1979, on the switch from risk-averse to risk-prone behavior.) 20Raiffa (1982). See Pruitt (1981) for a survey of much social psychological ex- perimentation on offers and concessions in distributive bargains.
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('/aiming Value 137 TACIT SHAPING OF PERCEPTIONS Although we have framed this discussion in terms of choosing of- fcrs, similar reasoning extends to a whole range of prenegotiation be- haviors intended to favorably shape perceptions of the bargaining sct. Consider the CEO who desperately desires to sell his company but feigns indifference and nonchalantly defers for a month a meet- ing to discuss a possible acquisition offer. Similarly, numerous Amer- ican public statements announcing U.S. aspirations and castigating the Soviet Union's posture on arms control undoubtedly have the ef- fect of shaping Soviet expectations; Soviet posturing no doubt has an equivalent effect on American perceptions. Opening statements, memos that stake out positions, statements to the press before formal negotiations begin, and detailed but clearly partisan analyses all are intended to favorably shape and anchor a counterpart's perceptions of the bargaining set. Holding Prime Values Hostage Imagine entering an antique store and covetously fondling an old brass dock for a quarter of an hour. Further, imagine telling the store owner how much you like the dock, and, turning it over and over in your hands, how it could be the perfect gift for your mother-in-law to make up for the bruising quarrel you had with her this morning. The world is not all bleak on all fronts, you idly continue, since you got an unexpected bonus two days ago; that helps things a bit. But this
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  • Spring '15
  • Business Law, Bargaining, reservation value, negotiation analysis, Botts

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