Chapter 10 : Making Rational Decisions Essay

778 Words Apr 9th, 2016 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 approach, which focuses more on how most individuals actually behave in real conflict. It is based upon three keys pieces of information: “each party’s alternative to a negotiated agreement, each party’s set of interests and the relative importance of each party’s interests.” Before any negotiation you should consider what will happen if no agreement is reached or what the chapter states as BATNA or Best Alternative To A Negotiated Agreement. You want to look at if the outcome is less than your BATNA than you should walk away from the deal and vice versa. You need to know all of the players when negotiating, try to think of what everyone’s interests are in the case and what is their BATNA, keeping this in mind can help you…

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