Rational Decision Making

778 Words 4 Pages
Chapter 10 is entitled Making Rational Decisions in Negotiations and is said to outline the framework for a rationale two-party negotiation. It looks to improve your outcomes as the primary negotiator and improve the outcomes for all parties involved in the negotiation. Economists were the first to give advice in this area and the most effective is game theory which is mathematical models to look at potential outcomes in multi-party negotiations, if all involved act rationally. It is the most precise provided everyone acts rationally. The negatives to this approach are that it is extremely tedious to look at every possible outcome and it relies on everyone acting rational, which is never a guarantee. An alternative to this approach is decision-analytic …show more content…
Not all work in every situation but they increase your chance of reaching a potential joint benefit. Building trust is easier said than done, you want to build a relationship, even when there is not an immediate economic interest. Asking questions is very important, the more information you have the better and you can usually learn critical information to the deal. You do not want to just disclose information but plan out when to give that information. The other side if smart will build on the information that you have given. Usually parties reciprocate, so if you give, they will usually give. The book suggests to not negotiate one issue at a time in a deal, some like to start with the biggest and other with the easiest but the book suggests to do multiple issues at once. To avoid reaching agreements on some issues and then not being able to reach agreements on others and that could be a deal breaker. It will also show what is more important to each side when negotiating simultaneously. Further they suggest that you avoid making an opening offer, because it creates an anchor that could overshadow subsequent parts of the negotiation. First you should could information. Consider making package offers. The book also states that if you are a wise negotiator than your work is not done after the deal is done, you should continue to look for more even better deals, that may potentially be better than the deal reached and they suggest employing a third party, but not always

Related Documents