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Content: judgment in managerial decision making
Author: Max H. Bazerman & Don A. Moore
Abstract: chapter 11 negotiator cognition
This chapter looks at six key issues that affect negotiator cognition: 1. The mythical fixed pie of negotiation 2. The framing of negotiator judgment; 3. The nonrational escalation of conflict; 4. Overestimating your own value; 5. Self-serving biases and 6. Anchoring biases.
Learning:
1. The mythical fixed pie also leads to reactive devalue any concession made simply because it is offered by an adversary. Get rid of bounded awareness.
2. Framing of negotiator judgment: the negotiators with positive frames are significantly more likely to make concessions and to reach mutually beneficial outcomes than their negatively framed counterparts. How to judge whether this is a positive or negative frame? The answer lies in the selection of perceptual anchoring.
3. Escalation of conflict: the finding on escalation in negotiation suggests that you shall avoid elicit bold, firm statements from an opponent, lest your adversary later feel trapped in a corner.
4. Overestimating your value in negotiation: negotiators who overestimate their value may miss out on a variety of settlements, despite the existence of a positive bargaining zone. Negotiators who are able to make more accurate assessment are likely to be more uncertain and uncomfortable about the probability of success and more likely to accept compromise.
5. Self-serving biases in negotiation: overestimating your value is closely related to the concept of self-serving biases, while overestimating your value refers to the tendency to exaggerate your indispensability, self-serving biases refer to the tendency for people to define what is fair in ways that favor themselves. As a result of self-serving biases, even when two parties both sincerely claim to want an outcome that is fair to both sides, their different notion of fairness can lead to impasse.
6. anchoring in negotiation.