Visualizzazione post con etichetta Negotiation. Mostra tutti i post
Visualizzazione post con etichetta Negotiation. Mostra tutti i post

sabato 14 aprile 2012

The Third Who Joins a Negotiation


Theory defines negotiation as a continuous interactive process of decision making, and multilateral negotiations are differentiated from bilateral negotiations because of their wider size, bigger complexity and greater heterogeneity.
My work (accepted for presentation at the EURAM 2012 Conference) refers to the third parties, i.e. a key stakeholder, as interested entities that enter a negotiation and could eventually act as a facilitator.
Even if contemporary approaches have integrated third party intervention in a broad understanding of causes and dynamics of conflicts, by definition third parties do not have a strong partisan position on the substantive issues in dispute. They seem to have been considered mainly as external entities, not fully interested and involved in the negotiation, thus a real interest for the implementation of the final agreement.
My literature review is intended for all those management scholars and practitioners who want to improve their comprehension of how negotiations can be successfully performed. In particular, the review is aimed at filling a current gap in the literature, because it tries to systematize our understanding about multilateral negotiations. In fact, the review focuses on the role that the third who joins can play for achieving integrative agreements. 
In general, the majority of the reviewed studies have stated the positive correlation of the third who joins with a more satisfactory negotiation output and process itself. 

lunedì 29 agosto 2011

Negotiation, Nudge and Anchor. How to obtain hundreds $ discount on a long-term rental car in US.


Theory defines the negotiation as a joint decision-making process between two or more interdependent parties, with preferences and interests of opportunistic nature and partially in conflict. This process can finish with an agreement.

Anchoring trap happens when you will estimate the magnitude of something by adding or subtracting a little from known magnitudes; so if you are in a town with 3 million you will calculate the population of the next town a bit bigger or smaller to yours. Anchors serve as nudges. We can influence the figure someone else will choose in a particular situation by ever-so-subtly suggesting a starting point for our thought process.

At the starting point of my experience in the United States I needed a car, I live outside Washington DC, the closest grocery store is 2-3 miles away and there is no public transport serving the neighborhood. So I started calling rental companies to find a good deal on a long-term rental car for the length of my stay in US. The lowest price they all said to me was around 850-900 $ per month, obtained negotiating without an anchor (and a Best Alternative). Then I started looking at the web, but the prices were around 750 $, then I found a deal on priceline.com for 650 $, but I had to go very far to take the car (around 100$ of cab…).

Then I tried to negotiate with this anchor with my first calls, and I discovered that when I called a previous 900$ rental agency saying I had an alternative for 650$ they lower their price close to that! So, as a good Italian, I started cheating!
I called the closest rental agency and gave them the anchor of 500$ and they lower their initial from 800$ to 510$, so I beat the priceline.com.

I used an anchor price to nudge the other negotiator.