Negotiations Notes
Textbook Chapter 6
Communication
Chapter discusses what is communicated in a negotiation, how people communicate during negotiations, and how to improve communications during a negotiation.
Important to note that what is communicated is equally as important as what is not communicated
What is Communicated during a Negotiation?
There are 5 categories of communication that occur in a negotiation
- Offers, Counteroffers, and Motives o Bargainers generally act according to their preference which is determined by their motives which are generally communicated in good faith during a negotiation o The offer-counteroffer system is a dynamic and interactive one as well as situational to environmental factors—this process changes the parameters of the negotiations and alters the bargaining range to help reach a settlement point o A framework for communication is
• Communication of offers is dynamic
• The offer process is interactive as bargainers influence each other
• Various external factors affect the negotiation
- Information about Alternatives o Having a BATNA generally alters how negotiators act within a negotiation o Negotiators with better BATNAs generally set higher reservation prices o Negotiators who are aware of their counterparties BATNA tend to set lower reservation points o Negotiators who have shared information about their BATNAs tend to reach better outcomes which indicates that negotiators should share information about their BATNAs to achieve its full benefit o Style of communicating the BATNA is equally important (i.e. hostile or fair)
- Information and Outcomes o Negotiators tend to feel as if they got a good deal based on the outcome of their negotiation based on their own experience, however research has shown that once they are informed of the counterparties satisfaction the negotiator tends to feel less good
- Social Accounts o Negotiators may bring in outside information, especially when justifying “bad news” o Three
Communication
Chapter discusses what is communicated in a negotiation, how people communicate during negotiations, and how to improve communications during a negotiation.
Important to note that what is communicated is equally as important as what is not communicated
What is Communicated during a Negotiation?
There are 5 categories of communication that occur in a negotiation
- Offers, Counteroffers, and Motives o Bargainers generally act according to their preference which is determined by their motives which are generally communicated in good faith during a negotiation o The offer-counteroffer system is a dynamic and interactive one as well as situational to environmental factors—this process changes the parameters of the negotiations and alters the bargaining range to help reach a settlement point o A framework for communication is
• Communication of offers is dynamic
• The offer process is interactive as bargainers influence each other
• Various external factors affect the negotiation
- Information about Alternatives o Having a BATNA generally alters how negotiators act within a negotiation o Negotiators with better BATNAs generally set higher reservation prices o Negotiators who are aware of their counterparties BATNA tend to set lower reservation points o Negotiators who have shared information about their BATNAs tend to reach better outcomes which indicates that negotiators should share information about their BATNAs to achieve its full benefit o Style of communicating the BATNA is equally important (i.e. hostile or fair)
- Information and Outcomes o Negotiators tend to feel as if they got a good deal based on the outcome of their negotiation based on their own experience, however research has shown that once they are informed of the counterparties satisfaction the negotiator tends to feel less good
- Social Accounts o Negotiators may bring in outside information, especially when justifying “bad news” o Three