Quite uj1cejiqª1ljjlfºjnrprtreya9iª1lje ntgti

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~!!~~ quite uJ:1ce!!<;J.,iQ,,ª,~~)1:l!JJl~_,f.ºJ:!n!.~r:p?![rtr~~~Eya,,~!9I!~ª1l!~,J~e nt!g()ti- (;lt()L!!l~IP~,~.e.!J~Lº[f.!~JJ.il},g H1~,~~º!Yl!~El?"a,,~t,p!<3.~~ t.h~jg!tial. offer. Why? First, the negotiator hopes to gain information about the bar- gaining range from the offer. Second, the uncertainty inherentIy im- plies that there is a good chance a "moderate" opening offer would be too high or too low. An offer much worse than the counterpart's reservation value may provoke anger, sour the atmosphere, and raise questions of seriousness or good faith. For example, if the building owner's reservation value were much higher than the $320,000 offer, he might be offended by it and feel that the offering group is not really serious. Yet offering too high a price, say $550,000, runs the opposite risk: if the owner would have accepted $450,000, the buyers would have overpaid by $100,000. ThtJ.~,J?'xx~fIªÜÜngJ:~Qn:UI1:a,,~i!!g,ª firstoffer, Gl IwgQtiatorwho is. quit~unc,erJaiJL about. the .c.ounter- ºart'sres~;~~Íi()n value av~id;givingtoo much (;l~;Y-~~~i~ºff~;úigin- s;JiúngiY)Üqe. . . . ,-~ . . .,,--,' " .. ~-But, th~ negotiator who defers whenuncertainab¡:)ut the counter- part's ies~i-vation valuébears anotlier risk: his perc~ptionsof thebar- g-ainlngsetmay be mi:ll1ipulatedbYJheQP~!iIngºff~¿Th~s, in this sItuation, many buyers make very low offersbut try to make them seem soft or flexible. They hope to substantially reduce the counter- part's aspirations without being insulting, without unnecessarily giv- ing up value, or risking committing to an unrealistic point. By contrast, if the negotiator becomes fairly confident that the counterpart's reservation value lies in a small range, than he may clearly be best off making the opening offer. In this case, he does not expect to gain much information about the bargaining set from his counterpart's initial offer. Moreover, he is not likely to run the risks of either an insultingly low offer or an overly generous opening. For example, if the high-tech firm attempting to buy the building were fairly confident, after studying the market and the actual competing potential buyers, that the owner's reservation value was between $425,000 and $475,000, the firm might offer something below this range. For example, the firm might offer $400,000, which it feels has a 90 percent chance of being below the owner's reservation value; or it might go lower still. Given the high-tech firm's assessment, such an offer is likely to be outside the bargaining set, is unlikely to leave much profit for the owner, is close enought to entice him to bargain, and is chosen to guide the final agreement to a point just aboye the owner's reservation value.
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134 Negotiation Analysis Experimental results in distributive bargains suggest that, within limits, the higher the opening offer, the better the outcome. 13 But, what is acceptably high and what is insultingly extreme depends on the assumed norms. When making an offer to another member of the diamond industry in Switzerland, being 2 percent below the asking price might be insulting; when buying a used car in the United States, offers 20 to 40 percent below the asking price can be reasonable.
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