Week 3

Question 1

Ontvanger, zender, boodschap

Answer 1

Er zijn altijd 3 variabelen om rekening mee te houden:
*Verzender, degene die de mededeling doet;
*De ontvanger, degene die de mededeling interpreteert;
*De boodschap/mededeling zelf.
*Hier kunnen verstoringen optreden.
Degene die de boodschap zendt, heeft de boodschap
gebaseerd op onvolledige/onjuiste informatie;
De boodschap zelf is onduidelijk;
Degene die de boodschap ontvangt, heeft zelf een verkeerde
voorstelling van zaken.
Invloeden van buitenaf kunnen hierop van invloed zijn.

Question 2

Perception, cognition emotion

Answer 2

*The basic building blocks of all social encounters are:
- Perception
- Cognition
➢ Cognitive biases
- Emotion

Question 3

Perceptual distortion

Answer 3

• Four major perceptual errors
• Stereotyping
• Halo effects
• Selective perception
• Projection
• Perceptual errors are hazards in negotiation because negotiators
  try to confirm their (faulty) first impressions and think they know
  what the other party will do

Question 4

Cognitive biases in negotiation

Answer 4

*Errors in processing information tend to impede
negotiator performance
- Irrational escalation of
commitment
- Mythical fixed-pie beliefs
- Reactive devaluation
- Anchoring and adjustment
- Issue framing and risk
- Availability of information
- The winner’s curse
- Overconfidence
- The law of small numbers
- Fundamental attribution
error
- Self-serving biases
- Endowment effect
- Reciprocation
- Contrast effect

Question 5

Escalation of commitment

Answer 5

• Negotiators maintain commitment to a course of action even
  when that commitment constitutes irrational behavior
• Successful negotiators look at the deal from the perspective of the
  other side

Question 6

Mythical fixed pie beliefs

Answer 6

*Negotiators assume that all negotiations (not just some)
involve a fixed pie
- No search for integrative settlements and mutually beneficial
trade-offs

Question 7

Anchoring and adjustment

Answer 7

*Anchoring and adjustment
- We anchor on an initial value when estimating the value of
uncertain objects
- We fail to make subsequent adjustments from this standard
during negotiation
- Anchors set a trap for the negotiator on the receiving end
➢ Throw in the first price IF you feel fairly confident about the value

Question 8

Availability of information

Answer 8

*Availability bias
- Negotiators are influenced by information that is presented
in vivid or attention-getting ways and becomes easy to
recall

Question 9

Issue framing and risk

Answer 9

• The way options are framed can lead people to seek or avoid risk
  in decision making and negotiation

Question 10

Issue framing and risk

Answer 10

*Framing is a very powerful tool for your negotiation kit!
- Faced with a positive choice, we become risk averse
➢ When negotiators are risk averse, they are more likely to
accept any viable offer
- Faced with a negative choice, we become risk seeking
➢ When negotiators are risk seeking, they will wait for a better
offer or concessions

Question 11

Overconfidence and the law of small numbers

Answer 11

*Overconfidence is the tendency of negotiators to
overestimate their ability to be correct
- Overconfident negotiators are less realistic and more rigid
- Optimism can help in distributive bargaining
*The law of small numbers
- The tendency of negotiators to draw conclusions from few prior
experiences
➢ Watch out for self-fulfilling prophecies

Question 12

Fundamental attribution error and self-serving biases

Answer 12

• Fundamental attribution error
• Negotiators primarily interpret the other party’s behavior in terms of
  their personality
  ❖Experiment (Morris, Larrick, & Su, 1999)
• High versus low value BATNA
  ➢ Influences perceptions of counterpart’s agreeableness (due to hard bargaining)
• Risky versus certain BATNA
  ➢ Influences perceptions of counterpart’s emotional instability (due to waffling
  and inconsistencies)
• Remember: separate the person from the problem!
• Self-serving biases
• Perceptual errors of a self-serving nature

Question 13

contrast effect

Answer 13

*Contrast principle
- Things look different when presented in sequence rather
than in isolation

Question 14

Psychological tools and traps

Answer 14

• The best advice that negotiators can follow is:
• Don’t assume that you are negotiating over a fixed pie (and avoid
  reactive devaluation)
• Use anchoring in developing a first offer strategy
• Avoid overconfidence when making negotiation decisions
• Frame the other side’s choices to your advantage
• Look beyond easily available information
• Look at all negotiations from the other side’s perspective
• Encourage reciprocity for the other side
• Use the contrast principle
  ➢Remember that these tools can become traps when the other
  side uses them!

Question 15

Framing

Answer 15

*Disputes are open to different interpretations and hence
frames
- Frames represent the subjective mechanism through which
people evaluate and make sense out of situations
* Frames shape what the parties define as the key issues and how
they talk about them
* Both parties have frames
- Mismatches in frames between the parties are sources of conflict and
misunderstandings
- Mutual reframing of the conflict may be necessary for resolution

Question 16

Interests, rights and power

Answer 16

Parties in conflict use one of three frames:
* Interests: people are concerned about needs, desires or wants
- Negotiation and mediation are interests-based options for dispute
resolution
* Rights: people are concerned about who is “right” and what is
legitimate
- Litigation and arbitration are rights-based options for dispute
resolution
* Power: people resolve differences on the basis of power over
others

Question 17

Negative negotiator emotions

Answer 17

*Negative emotions generally have negative consequences
- Competitive mindset
- Impaired analysis of situation
- Conflict-escalating behaviors

Question 18

Interpersonal effects

Answer 18

• How do emotions of the other party influence your behavior in a
  negotiation?

Question 19

Social contagion hypothesis

Answer 19

• Social contagion hypothesis: emotions spread from one person to
  another
• Participants with an angry opponent will make higher demands and
  smaller concessions than participants with a happy opponent

Question 20

Strategic choice hypothesis

Answer 20

• Strategic choice hypothesis: using the opponent’s emotions as a
  source of information
• Participants with an angry opponent will make lower demands and
  larger concessions than participants with a happy opponent

Question 21

Positive negotiator emotions

Answer 21

*Positive emotions generally have positive consequences
- Integrative processes
- Flexibility
- Confidence and persistence

Question 22

Main causes escalation of commitment

Answer 22

• Main causes
• Intense rivalry (especially one-on-one competition)
  ➢ Limit the role of someone who is especially intense
• Time pressure
  ➢ Manage time better
• In the spotlight
  ➢ Spread responsibility

Question 23

Endowment effect

Answer 23

*Endowment effect
- The tendency to overvalue something you own or believe
you possess

Question 24

Reciprocation effect

Answer 24

*Reciprocation
- The tendency for negotiators to feel the need to repay what
the other party gave to them

Question 25

Reactive devaluation and how to overcome

Answer 25

- Reactive devaluation: the process of devaluing the other party’s proposals and concessions simply because the other party made them *How to overcome? - Invent options - Focus on underlying interests - Hold negotiators accountable