Negotiations

Negotiations

1. Bargaining and influence process designed to reach agreement about a decision or outcome

2. Phases

   • Investigation
     • Information gathering stage
   • BATNA
     • Best alternative to a negotiated agreement
     • helps decide whether to accept an offer you recieve during a negotiation
     • More desparate someone is, the more you can demand
     • More options outside negotiation, more likely to make concessions
   • Presentation
     • assemble information in a way that supports your position
   • Bargaining
     • Each party discuss their goals and seeks to get an agreement
   • Closure
     • Decide to accept/not accept the offer

3. When all else fails

   • Alternative dispute resolutions
     • ways of solving conlfict with the help of a third party
       • done without the need for a formal trial
   • Mediation
     • third party enters the situation and reach an agreement
   • Arbitration
     • Third party has the authority to act as a judge and make a binding decision which both parties must adhere

4. Negotiation traps to avoid

   • Lose-lose
     • Leaving money on the table
   • Winner's curse
     • Settling for too little
   • Hubris
     • Walking away from the table
   • Agreement bias
     • settling for terms that are worse than your current situations

5. Concepts for preparing

   • BATNA
   • Reservation Price
   • ZOPA
   • Target Price