Raiffa Reading
(Ctools) Raiffa, “Two Parties, One Issue” pp. 33-34, 126-130, The Art & Science of Negotiation (Harvard University Press), 1982.
Two-party bargaining
- Distributive and integrative
- Distributive – one issue is under contention and the parties have almost strictly opposing interests on the issue
Checklist for Negotiation
Preparing for Negotiations
- Know yourself – what you need, want, aspire to; know your walk-away point
- Know your adversaries – speculate about alternatives, what will happen if no deal is struck
- Negotiating conventions – how open should you be, can you trust your adversary’s word, etc.
- Consider the logistics – who should negotiate? Need professional assistance?
- Simulated role playing – can be of value
- Set aspiration levels – what contract value should you strive for? Have a target level a reasonable distance from your walk-away price
Opening Gambits
- First offer – can sway perceptions or cause animosity
- Reaction to first offer – midpoint of two offers will be focal point – compare with aspiration level
- Protect integrity – avoid giving false information
The Negotiations Dance
- Patterns of Concessions – monotone decreasing, i.e. become successively smaller, signaling that you are approaching your limit
- Reassessing perceptions – reassess opinion on adversary’s reservation price
End Play
- Making commitments
- Breaking commitments gracefully
- Help adversaries to break a commitment gracefully
- Deception is immoral
- Not a commitment if both sides realize it can be broken early
- Introducing an intervenor
- Broadening the domain of negotiation
page revision: 3, last edited: 18 Oct 2010 23:25