Agenda: session 4 Distributive Negotiation Terminology:

target, reservation, ZOPA Strategies for Slicing the Pie Commonly Asked Questions Fairness

Distributive negotiation

When does it occur?

Can you convert a distributive context to an integrative one? (How?)

3-1A: Positive Bargaining Zone

Seller’s Bargaining Range

Buyer’s Bargaining Range

$5 $10 $15 $20

Positive Bargaining Zone

BT, Buyer’s Target Point

SR, Seller’s Reservation Point

BR, Buyer’s Reservation Point

ST, Seller’s Target Point

ZOPA

3-1B: Negative Bargaining Zone

Seller’s Bargaining Range

Buyer’s Bargaining Range

$5 $10 $15 $20

Negative Bargaining Zone

BT, Buyer’s Target Point

BR, Buyer’s Reservation Point

SR, Seller’s Reservation Point

ST, Seller’s Target Point

Pie-Slicing Strategies

Strategy 1: Assess your BATNA and improve it

Strategy 2: Determine your reservation point, but do not reveal it

Strategy 3: Research other party’s BATNA; estimate the reservation point

Strategy 4: Set high aspirations (be realistic, but optimistic)

Strategy 5: Make the first offer (if you are prepared)

Pie-Slicing Strategies Strategy 6: Immediately reanchor if the other party

opens first

Strategy 7: Plan your concessions Pattern magnitude (GRIT model) timing

Strategy 8: Support your offers with facts

Strategy 9: Appeal to norms of fairness

Strategy 10: Do not fall for the “even split” ploy

The Most Commonly Asked Questions Should I reveal my reservation point?

Should I lie about my reservation point?

Should I try to manipulate the other party’s reservation point?

Should I make a “final offer” or commit to a position?

How can preserve my dignity and that of others?

The Power of Fairness (I) Fairness in outcomes may be determined by

Equality rule Equity rule Needs-based rule

How can we figure out which method other parties may prefer to use?

In addition to fairness of outcomes, another kind of fairness is also considered…

The Power of Fairness (II) What accounts for differences of opinion about

assessments of fairness? Egocentrism taints judgments of fairness Cognitive mechanisms can result in egocentrism

Selective encoding and memory Differential retrieval Informational disparity

General Principles to Avoid Problems Consistency Simplicity Effectiveness Justifiability Consensus Generalizability Satisfaction

Yerba Mate Exercise

Next Monday, come to class to locate your negotiating counterpart and check in with me.

I will have further instructions when you complete your negotiation and return to the classroom.