Full Contents

Preface

Overview

PART I: ESSENTIALS OF NEGOTIATION
CHAPTER 1 Negotiation: The Mind and the Heart

Negotiation: Definition and Scope
Negotiation as a Core Management Competency

Dynamic Nature of Business
Interdependence
Competition
Information Age
Globalization

Most People Are Ineffective Negotiators
Negotiation Sandtraps
Why People Are Ineffective Negotiators

Egocentrism
Confirmation Bias
Satisficing
Self-Reinforcing Incompetence

Debunking Negotiation Myths

Myth 1: Negotiations Are Fixed-Sum
Myth 2:You Need to Be Either Tough or Soft
Myth 3: Good Negotiators Are Born
Myth 4: Experience Is a Great Teacher
Myth 5: Good Negotiators Take Risks
Myth 6: Good Negotiators Rely on Intuition

Learning Objectives
The Mind and Heart

CHAPTER 2 Preparation: What to Do Before Negotiation

Self-Assessment

What Do I Want?
What Is My Alternative to Reaching Agreement
in This Situation?
Determine Your Reservation Point
Be Aware of Focal Points
Beware of Sunk Costs
Do Not Confuse Your Target Point with Your
Reservation Point
Identify the Issues in the Negotiation
Identify the Alternatives for Each Issue
Identify Equivalent Multi-issue Proposals
Assess Your Risk Propensity
Endowment Effects
Am I Going to Regret This?
Violations of the Sure Thing Principle
Do I Have an Appropriate Level of Confidence?

Sizing Up the Other Party

Who Are the Other Parties?
Are the Parties Monolithic?
Counterparties' Interests and Position
Counterparties' BATNAs

Situation Assessment

Is the Negotiation One Shot, Long Term,
or Repetitive?
Do the Negotiations Involve Scarce Resources,
Ideologies, or Both?
Is the Negotiation One of Necessity
or Opportunity?
Is the Negotiation an Exchange or
Dispute Situation?
Are Linkage Effects Present?
Is Agreement Required?
Is It Legal to Negotiate?
Is Ratification Required?
Are Time Constraints or Other Time-Related
Costs Involved?
Are Contracts Official or Unofficial?
Where Do the Negotiations Take Place?
Are Negotiations Public or Private?
Is Third-Party Intervention a Possibility?
What Conventions Guide the Process of
Negotiation (Such as Who Makes the First Offer)?
Do Negotiations Involve More Than One Offer?
Do Negotiators Communicate Explicitly or Tacitly?
Is a Power Differential a Factor Between Parties?
Is Precedent Important?

Conclusion

CHAPTER 3 Distributive Negotiation: Slicing the Pie

The Bargaining Zone and the Negotiation Dance

Bargaining Surplus
Negotiator’s Surplus

Pie-Slicing Strategies

Strategy 1: Assess Your BATNA and Improve It
Strategy 2: Determine Your Reservation Point, But
Do Not Reveal It
Strategy 3: Research the Other Party’s BATNA
and Estimate Their Reservation Point
Strategy 4: Set High Aspirations (Be Realistic,
But Optimistic)
Strategy 5: Make the First Offer (If You Are Prepared)
Strategy 6: Immediately Reanchor if the Other
Party Opens First
Strategy 7: Plan Your Concessions
Strategy 8: Support Your Offers with Facts
Strategy 9: Appeal to Norms of Fairness
Strategy 10: Do Not Fall for the “Even Split” Ploy

The Most Commonly Asked Questions

Should I Reveal My Reservation Point?
Should I Lie About My Reservation Point?
Should I Try to Manipulate the Other Party’s
Reservation Point?
Should I Make a “Final Offer” or Commit to a Position?
Saving Face

The Power of Fairness

Multiple Methods of Fair Division
Situation-Specific Rules of Fairness
Social Comparison
The Equity Principle
Restoring Equity
Procedural Justice
Fairness in Relationships
Egocentrism

Wise Pie Slicing

Consistency
Simplicity
Effectiveness
Justifiability
Consensus
Generalizability
Satisfaction
Conclusion

CHAPTER 4 Win-Win Negotiation: Expanding the Pie

What Is Win-Win Negotiation Anyway?
Telltale Signs of Win-Win Potential

Does the Negotiation Contain More
Than One Issue?
Can Other Issues Be Brought In?
Can Side Deals Be Made?
Do Parties Have Different Preferences
Across Negotiation Issues?

A Pyramid Model

Most Common Pie-Expanding Errors

False Conflict
Fixed-Pie Perception

Strategies That Do Not Really Work

Commitment to Reaching a Win-Win Deal
Compromise
Focusing on a Long-Term Relationship
Adopting a Cooperative Orientation
Taking Extra Time to Negotiate

Strategies That Work

Perspective Taking
Ask Questions About Interests and Priorities
Provide Information About Your Interests and Priorities
Unbundle the Issues
Make Package Deals, Not Single-Issue Offers
Make Multiple Offers of Equivalent Value Simultaneously
Structure Contingency Contracts by
Capitalizing on Differences
Presettlement Settlements (PreSS)
Search for Postsettlement Settlements

A Strategic Framework for Reaching Integrative Agreements

Resource Assessment
Assessment of Differences
Offers and Trade-Offs
Acceptance/Rejection Decision
Prolonging Negotiation and Renegotiation
Do Not Forget About Claiming
Conclusion

PART II: ADVANCED NEGOTIATION SKILLS
CHAPTER 5 Developing a Negotiating Style

Tough Versus Soft Negotiators
Motivational Orientation

Assessing Your Motivational Style
Strategic Issues Concerning Motivational Style

Interests, Rights, And Power Model of Disputing

Assessing Your Approach
Strategic Issues Concerning Approaches

Emotions and Emotional Knowledge

Emotions and Moods
Expressed Versus Felt Emotion
Genuine Versus Strategic Emotion
Negative Emotion
Emotional Intelligence
Positive Emotion
Emotional Intelligence and Negotiated Outcomes
Strategic Advice for Dealing with Emotions at the Table

Conclusion

CHAPTER 6 Establishing Trust and Building a Relationship

The People Side of Win-Win
Trust as the Bedrock of Negotiation

Three Types of Trust in Relationships
Building Trust: Rational and Deliberate Mechanisms
Building Trust: Psychological Strategies
What Leads to Mistrust?
Repairing Broken Trust

Reputation
Relationships in Negotiation

Negotiating with Friends
Negotiating with Businesspeople
When in Business with Friends and Family
Bottom Line on Relationships

Conclusion

CHAPTER 7 Power, Persuasion, and Ethics

Your BATNA Is Your Most Important Source
of Power in Negotiation

Sources of Power

Analyzing Your Power

Persuasion Tactics

Two Routes to Persuasion
Central Route Persuasion Tactics
Peripheral Route Persuasion Tactics
The Effects of Power on Those Who Hold Power
The Effects of Power on Those with Less Power

Ethical Negotiation

Lying
Other Questionable Negotiation Strategies
Sins of Omission and Commission
Costs of Lying
Under What Conditions Do People Engage in Deception?
Psychological Bias and Unethical Behavior

Conclusion

CHAPTER 8 Creativity and Problem Solving in Negotiations

Creativity in Negotiation

Test Your Own Creativity

What Is Your Mental Model of Negotiation?

Haggling
Cost-Benefit Analysis
Game Playing
Partnership
Problem Solving

Creative Negotiation Agreements

Fractionating Problems into Solvable Parts
Finding Differences: Issue Alignment and Realignment
Expanding the Pie
Bridging
Cost Cutting
Nonspecific Compensation
Structuring Contingencies

Threats to Effective Problem Solving and Creativity

The Inert Knowledge Problem
Availability Heuristic
Representativeness
Anchoring and Adjustment
Unwarranted Causation
Belief Perseverance
Illusory Correlation
Just World
Hindsight Bias
Functional Fixedness
Set Effect
Selective Attention
Overconfidence
The Limits of Short-Term Memory

Creative Negotiation Strategies

Multiple Roads Lead to Rome (and an
Expert Understanding)
Feedback
Incubation
Rational Problem-Solving Model
Fluency, Flexibility, and Originality
Brainstorming
Convergent Versus Divergent Thinking
Deductive Reasoning
Inductive Reasoning
Flow

Conclusion

PART III: APPLICATIONS AND SPECIAL SCENARIOS
CHAPTER 9 Multiple Parties, Coalitions, and Teams

Analyzing Multiparty Negotiations
Multiparty Negotiations

Key Challenges of Multiparty Negotiations
Key Strategies for Multiparty Negotiations

Coalitions

Key Challenges of Coalitions
Strategies for Maximizing
Coalitional Effectiveness

Principal-Agent Negotiations

Disadvantages of Agents
Strategies for Working Effectively
with Agents

Constituent Relationships

Challenges for Constituent Relationships
Strategies for Improving
Constituent Relationships

Team Negotiation

Challenges That Face Negotiating Teams
Strategies for Improving Team Negotiations

Intergroup Negotiation

Challenges of Intergroup Negotiations
Strategies for Optimizing Intergroup Negotiations

Conclusion

CHAPTER 10 Cross-Cultural Negotiation

Learning About Cultures

Defining Culture
Culture as an Iceberg

Cultural Values and Negotiation Norms

Individualism Versus Collectivism
Egalitarianism Versus Hierarchy
Direct Versus Indirect Communications

Key Challenges of Intercultural Negotiation

Expanding the Pie
Dividing the Pie
Sacred Values and Taboo Trade-Offs
Biased Punctuation of Conflict
Ethnocentrism
Affiliation Bias
Faulty Perceptions of Conciliation and Coercion
Naïve Realism

Predictors of Success in Intercultural Interactions
Advice for Cross-Cultural Negotiations

Anticipate Differences in Strategy and Tactics
That May Cause Misunderstandings
Analyze Cultural Differences to Identify Differences
in Values That Expand the Pie
Recognize That the Other Party May Not Share
Your View of What Constitutes Power
Avoid Attribution Errors
Find Out How to Show Respect in the Other Culture
Know Your Options for Change

Conclusion

CHAPTER 11 Tacit Negotiations and Social Dilemmas

Business as a Social Dilemma

The Prisoner’s Dilemma

Cooperation and Defection as Unilateral Choices
Rational Analysis

Social Dilemmas

The Tragedy of the Commons
Types of Social Dilemmas
How to Build Cooperation in Social Dilemmas
How to Encourage Cooperation in Social
Dilemmas When Parties Should Not Collude

Escalation of Commitment

Avoiding the Escalation of Commitment in Negotiations

Conclusion

CHAPTER 12 Negotiating via Information Technology

Place-Time Model of Social Interaction

Face-to-Face Communication
Same Time, Different Place
Different Time, Same Place
Different Place, Different Time

Information Technology and Its Effects on Social Behavior

Trust
Status and Power: The “Weak Get Strong” Effect
Social Networks
Risk Taking
Rapport and Social Norms
Paranoia

Strategies for Enhancing Technology-Mediated Negotiations

Initial Face-to-Face Experience
One-Day Videoconference/Teleconference
Schmoozing

Conclusion

Appendix 1 Are You a Rational Person?
Check Yourself

Appendix 2 Nonverbal Communication
and Lie Detection

Appendix 3 Third-Party Intervention

Appendix 4 Negotiating a Job Offer

Name Index

Subject Index