1. 1. Perception
1.1. Perception Defined
1.1.1. The process by which individuals connect to their environment.
1.1.2. A complex physical and psychological process
1.1.3. A “sense-making” process
1.2. Perceptual Distortion
1.2.1. Four major perceptual errors:
1.2.1.1. Stereotyping
1.2.1.1.1. Is a very common distortion
1.2.1.1.2. Occurs when an individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic category
1.2.1.2. Halo effects
1.2.1.2.1. Are similar to stereotypes
1.2.1.2.2. Occur when an individual generalizes about a variety of attributes based on the knowledge of one attribute of an individual
1.2.1.3. Selective perception
1.2.1.3.1. Perpetuates stereotypes or halo effects
1.2.1.3.2. The perceiver singles out information that supports a prior belief but filters out contrary information
1.2.1.4. Projection
1.2.1.4.1. Arises out of a need to protect one’s own self-concept
1.2.1.4.2. People assign to others the characteristics or feelings that they possess themselves
2. 2. Framing
2.1. Frames:
2.1.1. Represent the subjective mechanism through which people evaluate and make sense out of situations
2.1.2. Lead people to pursue or avoid subsequent actions
2.1.3. Focus, shape and organize the world around us
2.1.4. Make sense of complex realities
2.1.5. Define a person, event or process
2.1.6. Impart meaning and significance
2.2. Types of Frames
2.2.1. 1.Substantive 2.Outcome 3.Aspiration 4.Process 5.Identity 6.Characterization 7.Loss-Gain
2.3. How Frames Work in Negotiation
2.3.1. Negotiators can use more than one frame
2.3.1.1. Mismatches in frames between parties are sources of conflict
2.3.1.1.1. Particular types of frames may lead to particular types of arguments
2.4. Interests, Rights, and Power
2.4.1. Interests: people talk about their “positions” but often what is at stake is their underlying interests
2.4.2. Rights: people may be concerned about who is “right” – that is, who has legitimacy, who is correct, and what is fair
2.4.3. Power: people may wish to resolve a conflict on the basis of who is stronger
2.5. The Frame of an Issue Changes as the Negotiation Evolves
2.5.1. 1.Negotiators tend to argue for stock issues or concerns that are raised every time the parties negotiate
2.5.1.1. 2.Each party attempts to make the best possible case for his or her preferred position or perspective
2.5.1.1.1. 3.Frames may define major shifts and transitions in a complex overall negotiation
3. 3.Cognitive Biases in Negotiation
3.1. 1.Irrational Escalation of Commitment
3.1.1. Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior
3.2. 2.Mythical Fixed-Pie Beliefs
3.2.1. Negotiators assume that all negotiations (not just some) involve a fixed pie
3.3. 3.Anchoring and Adjustment
3.3.1. - The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured - The anchor might be based on faulty or incomplete information, thus be misleading
3.4. 4.Issue framing and risk
3.4.1. Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation
3.5. 5.Availability of information
3.5.1. - Operates when information that is presented in vivid or attention-getting ways becomes easy to recall. - Becomes central and critical in evaluating events and options
3.6. 6.The winner’s curse
3.6.1. The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily
3.7. 7.Overconfidence
3.7.1. The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true
3.8. 8.The law of small numbers
3.8.1. - The tendency of people to draw conclusions from small sample sizes - The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future
3.9. 9.Self-serving biases
3.9.1. - People often explain another person’s behavior by making attributions, either to the person or to the situation - The tendency, known as fundamental attribution error, is to: + Overestimate the role of personal or internal factors + Underestimate the role of situational or external factors
3.10. 10.Endowment effect
3.10.1. The tendency to overvalue something you own or believe you possess
3.11. 11.Ignoring others’ cognitions
3.11.1. - Negotiators don’t bother to ask about the other party’s perceptions and thoughts - This leaves them to work with incomplete information, and thus produces faulty results
3.12. 12.Reactive devaluation
3.12.1. The process of devaluing the other party’s concessions simply because the other party made them
4. 4.Managing Misperceptions and Cognitive Biases in Negotiation
4.1. Best advice
4.1.1. Be aware of the negative aspects of these biases
4.1.2. Discuss them in a structured manner within the team and with counterparts
5. 5.Mood, Emotion, and Negotiation
5.1. Specificity
5.2. Intensity
5.3. Duration
5.4. Negotiations create both positive and negative emotions
5.5. Positive emotions generally have positive consequences for negotiations
5.5.1. They are more likely to lead the parties toward more integrative processes
5.5.2. They promote persistence
5.5.3. They also create a positive attitude toward the other side
5.6. Aspects of the negotiation process can lead to positive emotions
5.6.1. Positive feelings result from fair procedures during negotiation
5.6.2. Positive feelings result from favorable social comparison