Introduction To Negotiation - Summary

今天学完了Introduction To Negotiation。做了所有的Negotiation的练习。这里是课程提供的summary

Summary

First the Big 10:

Start by asking. If you don’t ask, you are unlikely to receive. As Linda Babcock shows, a single successful negotiation early in one’s career can be worth $500,000 over one’s working life.
Don’t just ask, make principled arguments
- 那么什么是principled arguments呢，下面有，第一个就是fair
Fairness is the key principle. All of our notions of fairness come down to some form of equal treatment. But equality of what? While proportional division treats all dollars equally, I want to treat people equally. Using the pie framework will help you figure out what equal treatment of the parties is.
Calculate the pie. In any negotiation, I want you to understand the perspective of the pie. What is really at stake? The answer is the pie. With two parties, the pie is how much more the two can achieve by working together compared to what they can get if they don’t reach an agreement. Since each of the two parties is essential to the deal, they have equal power and so, should split the pie evenly. If there are more than two parties, however, the division of the pie depends on how much value each of the parties brings to the group. The Shapley Value takes the average of how much value a party brings to the group across all orderings of them joining the group.
Employ symmetry.
1. Once you are in the pie framework, all arguments can be flipped—everything is symmetric. (See the Merger Case for one example.)
Know your BATNA and your reservation value.
1. Your BATNA (Best Alternative To a Negotiated Agreement) is what you would do if you can’t agree on a deal. Your reservation value is the price at which you don’t care whether you do the deal or take your BATNA.
Never accept something less than your reservation value.
1. No deal is better than a bad deal.
Engage in joint problem solving.
1. Figure out what is important to you. Are there items that are valuable to you but less valuable to the other party? If so, this will help expand the pie.
Be allocentric.
1. Start by asking questions [Point 1].
2. Ask the other party what their goals for the deal are. What are their concerns about the deal?
3. Try and find items that are valuable to the other party but not so valuable to you?
  1. This is how you expand the pie.
4. Try to expand the pie at the start of the negotiation when people may be in a more cooperative mood and there is less time pressure.
Remember beets vs. broccoli.
1. A good deal gives each party more of what they value. Don’t be afraid to go to extremes. If A likes beets more than broccoli and B likes broccoli more than beets, then A should get all the beets and B should get all the broccoli.
Create new options.
1. Just because someone says there are 10 big ideas, feel free to add your own big idea.
2. People often spend too much time debating between different poor alternatives.
3. They would do better to focus on devising new options.
4. And if you aren’t sure that you have the authority to try something new, then propose two deals: one that is conventional and one that you both prefer if it is permitted.

And here are some additional principles to aid you in negotiation.

Don’t fight fire with fire.
- If the other party says something inflammatory, try to diffusethe situation instead of making it worse.
If someone gives you an ultimatum, don’t give one in return. (That would be fighting fire with fire.)
- Instead, look to find another option that would make them dramatically better off.
- Even if you don’t offer this option, it demonstrates that they are open to options other than the ultimatum.
Never say no (unless it’s unethical).
- Rather than saying no to an unfavorable deal, ask for whatever it would take to induce you to take it. You have nothing to lose.
You don’t have to split the pie 50/50.
- You can suggest proportional division if it works more in your favor. Just don’t expect it to work if the person on the other side has taken this course.
Choose a good anchor.
- The first offer will affect how high or low the outcome of the negotiation will be. Also, exact numbers are stickier than round numbers, e.g., $1217 vs. $1200.
Many things that sound fair aren’t.
- While it’s important to reciprocate in sharing information and making concessions, there is nothing inherently fair about alternatingly taking options off the table.
Don’t lie.
- First, it is unethical.
- Second, if you get caught in the lie, you may lose any chance to reach an agreement.
- Third, most negotiations aren’t one-off relationships.
Don’t be nibbled.
- If someone tries to use the Nibble on you (asks for small concessions after the main deal is set) or sets himself up as the good cop (in a good cop, bad cop scenario), gently call it out. Use humor. Nice try.
Don’t exceed your negotiating authority.
- While some are tempted to ask for forgiveness rather that approval, there is a better solution.
- You can ask if the other party would agree to give you the option for a deal contingent on your employer’s approval.
Try for a post-settlement settlement.
- After you reach an agreement, discuss with the other party if there are any ways you could improve upon the deal. Ask how you could’ve handled the negotiation differently.
Get paid to play.
- If you aren’t in a strong enough position to win a deal but your presence in the game makes one or more parties better off, you can ask them to compensate you for entering. The same is not true for getting paid not to play—that’s illegal.
Try a settlement escrow.
- If you’re deadlocked in a negotiation, you can use a settlement escrow [] to determine if a deal is even possible, without anyone losing their bargaining power.
Try a Texas Shoot-Out to split a jointly owned item that can’t be divided.
- One person gets the item and the other gets cash for her share in the ownership. The first person names a price, and the other says “buy” or “sell” depending on whether the price is below or above how much her half ownership is worth to her.
(Almost) everything is negotiable.
- We’re not talking about morals here; simply that anything that is the product of a negotiation, e.g., a price, is negotiable.
Care but not too much.
- It’s actually easier to negotiate on behalf of others, instead of for yourself, because you’re not as emotionally invested.
Statements in writing are more believable than verbal statements.
- You’re better off you have a written document to back you up what you are telling the other side in a negotiation.
Deadlines need to have a reason.
- An arbitrary deadline won’t be effective. You need to supply a reason—even if a flimsy one—to set a deadline. And remember, often concessions will only happen just before the deadline.
Be aware of cultural differences.
- Listen to the other parties, stay close to them, and be aware that what is important to them may not be important to you and vice versa.
Get agreed-upon items off the table.
- 这里是为了加快进度
- The big principles of the deal should not change, though items will. Once items have been agreed upon by all parties, make it difficult to reopen those items, e.g., by signing off on individual pages, so that you can keep the deal moving toward completion.

Summary

Further Readings Books