Negotiation as Poker Game
•Download as PPT, PDF•
4 likes•2,470 views
"Win" your next negotiation AND your next session of Texas Holdem. Notes on this presentation will be on my blog soon. http://negotiationlawblog.com
![[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],04/03/10 (c) Victoria Pynchon, ADR Services, Inc. Negotiation, like poker, involves tactical decision-making based on incomplete information, in the face of uncertainty. Prof Steven Lubet, Northwestern University Law School](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
Recommended
More Related Content
Viewers also liked
Similar to Negotiation as Poker Game
Similar to Negotiation as Poker Game (20)
More from Victoria Pynchon
More from Victoria Pynchon (20)
Recently uploaded
Recently uploaded (20)
Negotiation as Poker Game
- 1. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 3. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 6. Rules 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. Folkways Cognitive Biases
- 7. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 8. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 9. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 10. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 11. What You Need to Know Influential parties outside the dispute/deal External Market Forces “ Relevant” Facts Business Plans for All Parties Business Realities for All Parties Story and Emotion 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 13. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 16. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. The Heart and Mind of the Negotiator, Professor Leigh Thompson at the Kellogg School of Management , Northwestern University In controlled experiments, only seven percent of negotiators sought information from their bargaining partner that would have revealed his/her true goals when it would have been dramatically helpful to do so.
- 17. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. Changing the Other Guy’s Mind
- 18. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 19. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 20. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 21. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. ANCHORING The party making the first reasonable offer should prevail over his bargaining partner who must respond in the range set by that party.
- 23. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 24. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. Women’s economic performance in negotiations hinges on their ability to harness gender stereotypes in a self-serving direction . Professor Leigh Thompson, Kellogg School of Management Northwestern University
- 25. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc. Widen bargaining range by sowing doubt
- 26. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 27. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
- 28. 04/03/10 (c) Victoria Pynchon, ADR Services, Inc.
Editor's Notes
- Tactical decision making : TACTICS : activities specifically created and selected to reach specific and measurable objectives INCOMPLETE INFORMATION : negotiating partners’ goals, limitations, desires, interests UNCERTAINTY : all deals are forward looking; uncertain capacity and uncertain future
- Women don’t play
- THE RULES OF NEGOTIATION : UNLIKE POKER, THERE IS ONLY ONE; YOU CANNOT MISREPRESENT A FACT MATERIAL TO THE TRANSACTION; OTHER THAN THAT CONSTRAINT, THE “DEAL” IS ANYTHING YOU WANT IT TO BE IN ANY WAY: YOU CAN GET IT THE FOLKWAYS: NEGOTIATORS TALK A LOT ABOUT “CROSS-CULTURAL” NEGOTIATION, WHICH CONCERNS BOTH THE STYLE AND THE SENSITIVITIES OF THE PARTIES In poker: local folkways include not bending the cards or splashing the pot; don’t take forever to make a bet: it’s about RESPECT & demonstrating that you are savvy – so that the other players will respect you In negotiation, local folkways include face-to-face or shuttle diplomacy; initial negotiations by low-level players who set the table for the principals; they also include the number of offers & counter-offers the parties make and whether you talk highly of the subject matter of the negotiation or downgrade it THE PSYCHOLOGY: in both games includes building trust; gaining and giving respect; bargaining hard or soft, competitively or cooperatively, which is dependent on your negotiation partner & your own personality
- A strong player knows how much he can afford to put on the table and when to walk away In NEGOTIATION: as long as the parties are moving in the direction of another, you DO NOT KNOW WHAT THEIR NEXT MOVE WILL BE AND UNTIL YOU’VE REACHED YOUR BOTTOM LINE, THERE’S ARE ONLY A FEW GOOD REASONS TO STOP TRYING WHY? BECAUSE THE OTHER SIDE IS BLUFFING AND WHEN YOU SAY: GENUINELY MY BOTTOM LINE, YOU’LL BE SURPRISED THAT YOUR PARTNER MAY WELL TAKE YOUR LAST OFFER
- I WILL TEACH YOU HARD COMPETITIVE BARGAINING TODAY BUT I’LL ALSO SUGGEST THAT YOU CONSIDER INTEREST-BASED NEGOTIATION TACTICS IN BOTH CASES, YOU NEED TO PREPARE BY ASKING YOURSELF WHAT YOU WANT VS. WHAT YOU NEED AND WHAT YOUR NEGOTIATING PARTNER LIKELY WANTS AND NEEDS. Access to Markets Access to Customers Goods/Services Relationship Network
- Bottom line is your best alternative to a negotiated agreement WITH THIS NEGOTIATION PARTNER Having another guy available always makes a woman more attractive to a man Having another plan at the ready, makes dealing with you attractive Knowing your own BATNA gives you confidence It also allows you to set high goals for yourself because your threat to walk away if you are not satisfied is credible .
- Identify your negotiation partners Who needs to be satisfied Are you negotiating with an agent What is the limit of that agent’s authority Always reading your players for bluffing Most players give themselves away as inexperienced by starting too high or too low Experienced players will always have a rationale for the offer on the table
- Do Your Homework Competitor’s strengths, weaknesses Competitor’s motivations Concerns aspirations
- Style : aggressive, assertive, coy, open, closed, competitive, calculating, fluid
- Psychology of Obtaining Concessions Create environment of safety and comfort Fellow feeling: shared experience (granfalloon) Most able to do this with business people especially in same industries: genuine shared experience draw one another out; talk about what they have in common
- What the realities are Your authority Your position Your capacity Your willingness The willingness, capacity of hidden stakeholders Know your BATNA
- Anchoring Set the range Big or small enough to make it difficult for partner to fold
- Anchor Number and a reason Each Concession half the size of the previous concession and takes twice as long to be made
- Don’t need the deal Have limited authority Deal can only be made today Have better offer elsewhere Threat of adverse activities if no deal