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The Mind and Heart

The Mind and Heart of the Negotiator


The Mind and Heart of the Negotiator integrates theory, scientific research, and

of the Negotiator
real-world application to provide an in-depth study of advanced bargaining
skills. To help students better navigate the material, the text has been
divided into three sections. The first lays down the groundwork for effective
negotiation and highlights its key principles. The second section focuses on
specific negotiation skills such as establishing trust, building relationships, and Seventh Edition
making ethical decisions. And finally, the third section deals with complex yet
common situations, such as multiparty, cross-cultural, and virtual negotiations.
Integrated examples, quizzes, and self-assessments in select chapters help
students examine their own negotiation styles as they learn and apply the
concepts within.

In addition, the seventh edition includes


• two new chapters, one on understanding the personality and motivational
orientation of the negotiator and the other on managing emotions at both
ends of the negotiation table.
• all-new chapter-opening case studies depicting real-life examples

SEVENTH
EDITION
drawn from business, politics, and world affairs to illustrate effective, as
well as ineffective, negotiation approaches.
• updated coverage based on groundbreaking findings drawn from more
than 175 new scientific articles, including ones on distributive negotiation,
opening offers, and management of emotions.
Thompson

Leigh L.Thompson

CVR_THOM9461_07_GE_CVR_Vivar.indd 1 18/02/21 10:49 AM


SEVENTH EDITION

GLOBAL EDITION

THE MIND AND HEART


OF THE NEGOTIATOR
LEIGH L. THOMPSON
Kellogg School of Management
Northwestern University

Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Dubai • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan

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ISBN 10: 1-292-39946-5


ISBN 13: 978-1-292-39946-1
eBook ISBN: 978-1-292-39944-7

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1 21

Cover Photo: JOKE_PHATRAPONG / Shutterstock


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To the loves of my life:
Bob, Sam, Ray, and Anna

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BRIEF CONTENTS
PART I       Negotiation Essentials 21
Chapter 1 Negotiation: The Mind and The Heart 21
Chapter 2 Preparation: What to Do before Negotiation 32
Chapter 3 Distributive Negotiation: Claiming Value 5 4
Chapter 4 Integrative Negotiation: Expanding the Pie 82

PART II    Negotiation Skills 105


Chapter 5 Understanding Personality and Motivation 105
Chapter 6 Managing Emotions and Contentious Negotiations 123
Chapter 7 Establishing Trust and Building Relationships 154
Chapter 8 Power, Ethics, and Reputation 181
Chapter 9 Creativity, Problem Solving, and Learning in
­Negotiation 202

PART III Complex Negotiations 227


Chapter 10 Multiple Parties, Coalitions, and Teams 227
Chapter 11 Cross-Cultural Negotiation 260
Chapter 12 Negotiating in a Virtual World 293

APPENDICES
Appendix 1 Negotiating a Job Offer 315
Appendix 2 Third-Party Intervention 326

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CONTENTS
Preface 17
About the Author 20

Part I Negotiation Essentials 21

Chapter 1 NEGOTIATION: THE MIND AND THE HEART 21


The Mind and Heart 22
Relationships versus Economics 22
Satisficing versus Optimizing 22
Short- versus Long-Term Relationships 23
Intra- versus Inter-organizational Negotiation 23
Low- versus High-Stakes Negotiation 23
Win–Win, Win–Lose, and Lose–Lose Negotiation 24
Negotiation as a Core Management Competency 24
Knowledge Economy 24
Specialized Expertise 25
Information Technology 25
Globalization 26
Negotiation Traps 26
Becoming an Effective Negotiator 27
Feedback 28
Strategy 29
Focused Practice 29
Debunking Negotiation Myths 29
Myth 1: Negotiations Are Fixed-Sum 29
Myth 2: You Need to Be Either Tough or Soft 30
Myth 3: Good Negotiators Are Born 30
Myth 4: Good Negotiators Rely on Intuition 30
Chapter Capstone 31

Chapter 2 PREPARATION: WHAT TO DO BEFORE


NEGOTIATION 32
Self-Assessment 33
Targets and Aspirations 33
BATNA 35
Reservation Point 36
Focal Points 36
5

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6 Contents

Sunk Costs 39
Target Point versus Reservation Point 39
Negotiation Issues 39
Issue Alternatives 39
Multi-issue Proposals 40
Risk and Uncertainty 40
Endowment Effects 43
Buyer’s Remorse and Seller’s Regret 43
Negotiator Confidence 44
Perspective-Taking 45
Counterparty 45
Are the Parties Monolithic? 45
Counterparties’ Interests and Positions 46
Counterparties’ BATNAs 46
Situational Awareness 46
One-Shot versus Long-Term 46
Transactions versus Disputes 47
Linkage Effects 47
False versus Sincere Negotiations 48
Is It Legal to Negotiate? 48
Ratification 49
Time Constraints 49
Formal versus Handshake Agreement 51
Onsite versus Offsite Meetings 51
Public versus Private 51
Scripted versus Unscripted 52
Single versus Multiple Offers 52
Chapter Capstone 52

Chapter 3 DISTRIBUTIVE NEGOTIATION: CLAIMING VALUE 54


The Bargaining Zone 55
Bargaining Surplus 57
Negotiator’s Surplus 57
Value-Claiming Strategies 58
Accurately Assess Your BATNA 59
Unpack Alternatives 59
Improve Your BATNA 59
Determine Your Reservation Point, but Do Not Reveal It 59

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Contents 7

Research the Other Party’s BATNA and Estimate Their


Reservation Point 61
Set High Aspirations (Be Realistic but Optimistic) 61
First Offers 63
Anchoring Information Model 64
Anchoring Effect 65
Range Offers 66
Precise versus Round Numbers 66
Early versus Late First Offers 67
Re-anchoring 67
Concessions 68
Reciprocity versus Aversion 68
Concession Pattern 68
Magnitude of Concessions 69
Timing of Concessions 70
Substantiation 70
Power Conversation Tactics 70
Constraints versus Disparagement 71
“Agreement” versus “Option” 71
Fairness Arguments 71
Social Comparison 76
Equity Principle 77
Final Offers 80
Face-Saving 80
Chapter Capstone 81

Chapter 4 INTEGRATIVE NEGOTIATION: EXPANDING


THE PIE 82
Fixed-Sum versus Variable-Sum Negotiation 82
False Conflict 83
Fixed-Pie Perception 83
Integrative Negotiation 84
Compromise versus Integrative Negotiation 84
Pareto Optimal Agreements 85
Assessing the Likelihood of Win–Win Agreement 86
Multiple Issues 86
Add Issues 86
Side Deals 86
Differing Strengths of Preference 87

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8 Contents

Strategies for Expanding the Pie 87


Separate Positions from Interests 87
Perspective Taking 88
Ask Questions about Interests and Priorities 89
Reveal Information about Interests and Priorities 90
Unbundle the Issues 94
Value-Added Trade-offs (Logrolling) 94
Multi-issue Offers versus Single-Issue Offers 95
MESOs: Multiple Equivalent Simultaneous Offers 95
Contingent Contracts 98
Pre-settlement Settlements (PreSS) 100
Post-settlement Settlements 100
Focal Points and Turning Points 101
Decision-Making Model of Integrative Agreements 102
Resource Assessment 102
Assessment of Differences 103
Offers and Trade-offs 103
Acceptance/Rejection Decision 103
Prolonging Negotiation and Renegotiation 103
Chapter Capstone 104

Part II Negotiation Skills 105

Chapter 5 UNDERSTANDING PERSONALITY AND MOTIVATION 105


Individual Differences 105
Implicit Theories 106
Acoustic and Visual Cues 106
“Big 5” Personality Traits 106
Psychopathic Personality Traits 107
Dyadic Interaction 107
Attachment Style 107
Motivational Orientation 108
Cooperative Negotiator 108
Competitive Negotiator 111
Individualistic Negotiator 111
Strategic Issues concerning Motivational Style 112
Gender and Negotiation 114
Economic Outcomes 114

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Contents 9

Opening Offers 115


Initiating Negotiations 116
The Backlash Effect 117
The Costs of “Leaning In” 117
Lying and Misrepresentation 118
Discrimination 118
Gender and Third-Party Dispute Resolution 119
Leveling the Playing Field 119
Chapter Capstone 121

Chapter 6 MANAGING EMOTIONS AND CONTENTIOUS


NEGOTIATIONS 123
Emotions 123
Genuine versus Strategic Emotion 124
Anger 127
Disappointment 129
Sadness 129
Ambivalence 130
Positive Emotion 130
Happiness 132
Emotional Consistency 132
Emotional Intelligence 132
Managing Emotions at the Table 134
Disputes 136
Interests, Rights, and Power Model 137
Time Course of Interests, Rights, and Power 139
Strategic Issues concerning Interests, Rights, and Power 140
Refocusing 141
High Costs Associated with Power and Rights 144
When to Use Rights and Power 144
How to Use Rights and Power 145
Social Dilemmas 146
Social Dilemmas in Business 146
Prisoner’s Dilemma 146
Actual Behavior in Dilemmas 148
Tit-for-Tat 148
Inducing Trust and Cooperation in Social Dilemmas 148
Restoring Broken Trust 151

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10 Contents

How to Encourage Cooperation in Social Dilemmas When Parties


Should Not Collude 152
Chapter Capstone 152

Chapter 7 ESTABLISHING TRUST AND BUILDING


RELATIONSHIPS 154
Money versus Relationships 154
Subjective Value 155
Rapport 155
Sequential Negotiations and Bargaining History 157
Trust and Temptation 157
Trust Propensity 158
Three Types of Trust in Relationships 158
Building Trust: Rational and Deliberate Mechanisms 161
Building Trust: Psychological Strategies 164
Distrust and Suspicion 168
Repairing Broken Trust 169
Relationships in Negotiation 170
Negotiating with Friends 173
Negotiating in Exchange Relationships 176
Multiplex Relationships 178
Chapter Capstone 180

Chapter 8 POWER, ETHICS, AND REPUTATION 181


Power 182
Sources of Power 182
BATNAs as Power 182
Symmetric versus Asymmetric Power 184
Perspective-Taking 184
Powerlessness 184
Status 185
Status and Negotiation Performance 185
Primary Status Characteristics 186
Secondary Status Characteristics 186
Negotiation Ethics 186
Seven-Factor Model of Ethically Questionable Behavior 187
Lying 190
Bad-Faith Bargaining 194
Good-Faith Bargaining 194

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Contents 11

Sins of Omission and Commission 194


Bidding Wars 195
Detecting Deception in Negotiation 196
Making Ethical Decisions 196
Responding to Unethical Behavior 198
Reputation 199
Halos and Forked-Tails 199
Reputations in Negotiation Communities 200
Distributive versus Integrative Reputation 201
BATNAs and Reputations 201
Reputations and Self-Serving Views 201
Chapter Capstone 201

Chapter 9 CREATIVITY, PROBLEM SOLVING, AND LEARNING IN


NEGOTIATION 202
Creativity in Negotiation 202
Test Your Own Creativity 203
Mental Models of Negotiation 207
Haggling 207
Cost-Benefit Analysis 207
Game Playing 208
Partnership 208
Problem Solving 208
Creative Negotiation Agreements 209
Fractionating Single-Issue Negotiations into Multiple Issues 209
Pattern-Finding 209
Expanding the Pie 210
Bridging 210
Cost Cutting 210
Nonspecific Compensation 211
Structuring Contingencies 211
Improving Negotiation Skills 215
Relationships, Contracts, and Learning 215
Negotiation Skills Training 215
Bilateral versus Unilateral Training 216
Feedback 216
Learning versus Performance Goals 217
Prevention versus Promotion Goals 218

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12 Contents

Easy versus Difficult to Learn 219


Analogical Training 219
Counterfactual Reflection 220
Incubation 220
Rational Problem-Solving Model 221
Brainstorming 222
Negotiation Engineering 222
Chapter Capstone 223

Part III Complex Negotiations 227

Chapter 10 MULTIPLE PARTIES, COALITIONS, AND TEAMS 227


Multiparty Negotiations 228
Key Challenges of Multiparty Negotiations 229
Strategies for Successful Multiparty Negotiations 233
Coalitions 235
Challenges of Coalitions 235
Maximizing Coalitional Effectiveness 240
Principal–Agent Negotiations 241
Disadvantages of Agents 242
Working Effectively with Agents 244
Constituent Relationships 245
Challenges for Constituent Relationships 246
Improving Constituent Relationships 249
Team Negotiation 249
Challenges that Face Negotiating Teams 251
Improving Team Negotiation 252
Intergroup Negotiation 254
Challenges of Intergroup Negotiations 254
Optimizing Intergroup Negotiations 256
Chapter Capstone 259

Chapter 11 CROSS-CULTURAL NEGOTIATION 260


Learning about Culture 261
Defining Culture 261
Prototypes versus Stereotypes 261
Iceberg Model 262

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Contents 13

Cultural Frameworks 262


Hofstede Model 262
Implications for Negotiation 269
Tripartite Model of Culture 270
Tight versus Loose Cultures 276
Challenges of Intercultural Negotiation 277
Creating Value 277
Claiming Value 277
Sacred Values and Taboo Trade-offs 277
Biased Punctuation of Conflict 280
Ethnocentrism 281
Affiliation Bias 281
Faulty Perceptions of Conciliation and Coercion 281
Naïve Realism 282
Cultural Intelligence 283
CQ Model 283
Advice for Cross-Cultural Negotiations 284
Anticipate Differences in Strategy and Tactics 285
Perspective Taking 285
Perceptions of Power 286
Attribution Errors 286
Respect 288
Emotion 289
Perceptions of Time 290
Acculturation Framework 290
Chapter Capstone 292

Chapter 12 NEGOTIATING IN A VIRTUAL WORLD 293


Place-Time Model of Social Interaction 293
Face-to-Face Communication 294
Same Time, Different Place 296
Different Time, Same Place 299
Different Place, Different Time 299
Information Technology and Effects on Social Behavior 303
Trust 303
Deception 303

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14 Contents

Status and Power: The “Weak Get Strong” Effect 304


Social Networks 305
Risk Taking 306
Relationships and Rapport 307
Mentalizing 308
Intergenerational Negotiation 308
Enhancing Technology-Mediated Negotiations 311
Initial Face-to-Face Experience 311
One-Day Videoconference/Teleconference 312
Schmoozing 312
Proactive Medium Management 313
Humor 313
Chapter Capstone 314

Appendix 1 NEGOTIATING A JOB OFFER 315


Preparation 315
Focus on Your Interests 316
Research the Company and the Industry 317
Determine Your BATNA and Your Reservation Point 317
Research the Employer’s BATNA 317
Determine Your Target Point and Plan Your Opening Offer 318
Prepare Several Scenarios 318
Consider Getting a “Coach” 319
Rehearse and Practice 319
In Vivo: During the Negotiation 319
Think about the Best Way to Position and Present Your
Opening Offer 319
Assume Their Offer Is Negotiable 320
Put the Focus on How You Can Solve Their Problems versus
Making Demands 321
Don’t Reveal Your BATNA or Your Reservation Point 322
Imagine Negotiating on Behalf of Someone Else
(Not Just Yourself) 322
Post-Offer: You Have the Offer, Now What? 322
Think before Posting Anything on Social Media 322
Do Not Immediately Agree to the Offer 323
Get the Offer in Writing 323
Be Enthusiastic and Gracious 323

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Contents 15

Assess the Interviewer’s Power to Negotiate with You 323


Do Not Negotiate if You Are Not or Could Not Be Interested 323
Exploding Offers 324
Do Not Try to Create a Bidding War 324
Know When to Stop Pushing 324
Use a Rational Strategy for Choosing among Job Offers 324
State Exactly What Needs to Be Done for You to Agree 325

Appendix 2 THIRD-PARTY INTERVENTION 326


Third-Party Dispute Resolution 326
Mediation 326
Arbitration 327
Mediation–Arbitration 328
Arbitration–Mediation 329
Choices in Third-Party Intervention 329
Outcome versus Process Control 330
Formal versus Informal 330
Invited versus Uninvited 330
Identifiable versus Anonymous 330
Interpersonal versus Intergroup 330
Content versus Process Orientation 331
Facilitation, Formulation, or Manipulation 331
Third-Party Effectiveness 331
Hostile Mediators 331
Mediation and Gender 332
Mediation and Culture 332
Mediation and Mimicry 332
Challenges Facing Third Parties 332
Meeting Disputants’ Expectations 332
Reaching Settlement (if a Positive Bargaining Zone Exists) 333
Promoting a Pareto-Efficient Outcome 333
Promoting Outcomes Perceived as Fair (in the Eyes
of Disputants) 333
Consistency 334
Simplicity 334
Justifiability 334
Generalizability 334
Satisfaction 334

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16 Contents

Empowering Parties in the Negotiation Process 334


Debiasing Negotiators 335
Maintaining Neutrality 336
Enhancing the Effectiveness of Third-Party Intervention 337
Accept Your Share of Responsibility 337
Test Your Own Position 337
Role-Play a Third Party in Your Own Dispute 337
Training in Win–Win Negotiation 337
Name Index 338
Subject Index 355

A01_THOM9461_07_GE_FM.indd 16 11/02/21 4:49 PM


PREFACE
This book is dedicated to students and managers who want to improve their ability to n­ egotiate—
whether in multimillion dollar business deals or personal interactions. Yes, it is possible to dra-
matically improve your ability to negotiate. You can improve your economic outcomes and also
your relational outcomes, so that you make more money and feel better about yourself and the
people with whom you deal. The book integrates theory, scientific research, and practical ex-
amples. This edition contains three key sections: (1) negotiation essentials; (2) negotiation skills;
and (3) complex negotiations. New to this edition is a chapter on negotiator personality and
motivation; and a chapter on managing emotions in contentious negotiations. The book contains
hundreds of real examples from business, politics, and personal life spanning the globe to illus-
trate effective, as well as ineffective, negotiation skills.

Here is what you can expect when you read this book:
• Illustrative case studies. Each chapter opens with a case study of an actual negotiation,
drawn from business, government, world affairs, community, and personal life. New to this
edition are more than 125 examples from the business world, many involving international
issues.
• Skills-based approach. Each chapter provides practical takeaway points for the man-
ager and the executive. A good example is Chapter 4 on integrative negotiation. A series
of hands-on principles are described that have been proven to increase the value of negoti-
ated deals.
• Self-insight. Many chapters contain several self-assessments, quizzes, and examples
that readers can use to examine their negotiation attitudes and behaviors. For example,
­Chapter 5 gives negotiators an opportunity to assess their “motivational” bargaining
style and provides suggestions for how to respond to different personalities and styles.
In ­Chapter 8, negotiators can examine their ethical principles in negotiation. Moreover,
­Chapter 11 provides a deep look at cultural differences in negotiation so that the negotiator
can better understand his or her own cultural style and that of others.
• Advanced bargaining skills. The third section of the book focuses on complex, yet com-
monly occurring negotiation situations, such as multiparty negotiation, cross-cultural nego-
tiation, and non–face-to-face (virtual) negotiations. These sections have been revised in this
edition.
• Scientific research. New to this edition are the groundbreaking results of more than 175
new scientific articles on negotiation.
I benefit greatly from the advice, comments, and critiques given to me by my students
and colleagues, and I hope their advice keeps coming so that I am able to improve upon the
book even further. The research and ideas in this book come from an invaluable set of ­scholars
in the fields of social psychology, organizational behavior, sociology, negotiation, and ­cognitive

Note: Every effort has been made to provide accurate and current Internet information in this book. However, the
Internet and information posted on it are constantly changing, so it is inevitable that some of the Internet addresses
listed in this textbook will change.
17

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18 Preface

psychology. My research, thinking, and writing have been inspired in important ways by the
following people: Wendi Adair, Cameron Anderson, Evan Apfelbaum, Linda Babcock, Chris
Bauman, Max Bazerman, Kristin Behfar, Terry Boles, Jeanne Brett, Susan Brodt, Karen Cates,
Hoon-Seok Choi, Taya Cohen, Susan Crotty, Jeanne Egmon, Hal Ersner-Hershfield, Gary
Fine, Craig Fox, Adam Galinsky, Wendi Gardner, Dedre Gentner, Robert Gibbons, Kevin
Gibson, James Gillespie, Rich Gonzalez, Deborah Gruenfeld, Erika Hall, Reid Hastie, Andy
Hoffman, Elizabeth Howard, Peter Kim, Shirli Kopelman, Rod Kramer, Laura Kray, Nour
Kteily, Terri Kurtzburg, Geoffrey Leonardelli, John Levine, Allan Lind, George Loewenstein,
Jeff Loewenstein, Brian Lucas, Deepak Malhotra, Beta Mannix, Kathleen McGinn, Vicki
Medvec, Tanya Menon, Dave Messick, Terry Mitchell, Don Moore, Michael Morris, Keith
Murnighan, Janice Nadler, Maggie Neale, Kathy Phillips, Robin Pinkley, Ashleigh Rosette,
Nancy Rothbard, Catherine Shea, Ned Smith, Marwan Sinaceur, Harris Sondak, Roderick
Swaab, Tom Tyler, Leaf Van Boven, Kimberly Wade-Benzoni, Laurie Weingart, Judith White,
and Elizabeth Ruth Wilson. Throughout the text of The Mind and Heart of the Negotiator, I use
the pronoun “we” because so much of my thinking has been influenced and shaped by this set
of eminent scholars.
The revision of this book would not have been possible without the dedication, organiza-
tion, and editorial skills of Larissa Tripp and Ellen Hampton, who created the layout, organized
hundreds of drafts, mastered the figures, and researched many case studies for this book.
In this book, I talk about the “power of the situation,” and how strongly the environment
shapes our behavior. The Kellogg School of Management is one of the most supportive, dynamic
environments I have ever had the pleasure to be a part of. I am particularly indebted to Jeanne
Brett, who created the Dispute Resolution Research Center (DRRC) at Kellogg in 1986.
This book is very much a team effort of the people I have mentioned here, whose talents
are diverse, broad, and extraordinarily impressive. I am deeply indebted to my colleagues and
my students, and I feel grateful that they have touched my life and this book.

GLOBAL EDITION ACKNOWLEDGMENTS


Pearson would like to thank the following people for their work on the Global Edition:

Contributors
Jon and Diane Sutherland

Reviewers
Wen-Dong Li, Chinese University of Hong Kong
Sununta Siengthai, Asian Institute of Technology
Kim Maya Sutton, Jade University of Applied Sciences

OVERVIEW
This book is divided into three major sections. The first section deals with the essentials of
negotiation—the key principles and groundwork for effective negotiation. Chapter 2 leads the
manager through effective preparation strategies for negotiation. Chapter 3 discusses distribu-
tive negotiation skills, or how to optimally allocate resources in ways that are favorable to one’s
self—a process called “slicing the pie.” Chapter 4 is the integral chapter of the book; it focuses

A01_THOM9461_07_GE_FM.indd 18 11/02/21 4:49 PM


Preface 19

on “win–win” negotiation or, more formally, integrative negotiation. This creative part of nego-
tiation involves expanding the pie of resources in ways that provide more gains to go around.
The second section of the book deals with specific negotiation skills. Chapter 5 focuses
on negotiator personality and motivation. Chapter 6 focuses on managing emotions and conten-
tious negotiation situations. Chapter 7 focuses on establishing trust and building relationships.
This chapter examines business and personal relationships, and how trust is developed, broken,
and repaired. Chapter 8 discusses power, ethics, and reputations in negotiation. In Chapter 9, the
focus is on problem solving and creativity. This chapter provides strategies for learning how to
think out-of-the-box and provides techniques for using creativity and imagination in negotiation.
The third section deals with complex negotiations. Chapter 10 examines the complexi-
ties of negotiating with multiple parties, such as conflicting incentives, coalitions, voting rules,
and how to leverage one’s own bargaining position when negotiating with multiple parties.
Chapter 11 focuses on cross-cultural negotiation, which addresses the key cultural values and
negotiation norms across a variety of global cultures, along with some advice for cross-cultural
negotiations. Chapter 12 focuses on information technology and its impact on negotiation and
uses a place-time model of social interaction to examine the challenges and opportunities of
negotiation as it occurs in the digital era. It includes a section on inter-generational negotiation
and e-negotiations.
Two appendices provide a variety of additional material: Appendix 1 provides tips and a
checklist for negotiating a job offer. Appendix 2 examines third-party intervention.

FACULTY RESOURCES
Instructor Resource Center
At http://www.pearsonglobaleditions.com/, instructors can easily register to gain access to a
variety of instructor resources available with this text in downloadable format. If assistance is
needed, the dedicated technical support team is ready to help with the media supplements that
accompany this text. Visit https://support.pearson.com/getsupport/s/contactsupport for answers
to frequently asked questions and toll-free user support phone numbers.
The following supplements are available with this text:
• Instructor’s Resource Manual
• Test Bank
• TestGen® Computerized Test Bank
• PowerPoint Presentation

A01_THOM9461_07_GE_FM.indd 19 11/02/21 4:49 PM


ABOUT THE AUTHOR
Leigh L. Thompson joined the Kellogg School of Management in 1995. She is the J. Jay ­Gerber
Distinguished Professor of Dispute Resolution and Organizations. She directs the Leading High
Impact Teams executive program and the Kellogg Team and Group Research Center and co-­
directs the Negotiation Strategies for Managers program. An active scholar and researcher, she has
published over 130 research articles and chapters and has authored 11 books, including: Making
the Team (6th edition); Creativity and Innovation in Organizational Teams; Shared Knowledge in
Organizations; Negotiation: Theory and Research; Creative Conspiracy: The New Rules of Break-
through Collaboration; Stop Spending, Start Managing; The Social Psychology of Organizational
Behavior: Essential Reading; Organizational Behavior Today; The Truth about Negotiations (2nd
edition); and Conflict in Organizational Groups. Thompson has worked with private and public
organizations in the United States, Latin America, Canada, Europe, and the Middle East. Her
teaching style combines experiential learning with theory-driven best practices. For more informa-
tion about Leigh Thompson’s teaching and research, please visit leighthompson.com.

20

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1
Part I: Negotiation Essentials

NEGOTIATION: THE MIND


AND THE HEART

The negotiation did not begin with each party sizing up the other and presenting offers accompa-
nied by PowerPoint decks flanked by attorneys and senior executives. Quite the opposite. Disney
chief Bob Iger and 21st Century Fox chairman Rupert Murdoch were drinking wine at Murdoch’s
Moraga Estate winery in Bel Air, and discussing disruptive internet trends impacting their respective
television and film companies. In this meeting, they realized that they shared much in common. A
few weeks later, Iger called Murdoch to explore a merger. Given how well the two had connected
over wine, Murdoch was interested. The two chiefs met in secret, without PowerPoint presenta-
tions, and teams of senior executives at both companies were strategically left out of the loop. The
negotiations, like the wine get-together were smooth, cordial and informal. Two months later, Iger
and Murdoch stood arm-in-arm atop a London skyscraper to announce their intention to construct a
$52.4 billion acquisition deal.1

W hereas most of us are not involved in billion-dollar negotiation deals, one thing
that business scholars and businesspeople are in complete agreement on is that
everyone negotiates nearly every day. Getting to Yes begins by stating, “Like it
or not, you are a negotiator . . . everyone negotiates something every day.”2 Similarly, Lax
and Sebenius, in The Manager as Negotiator, state that “Negotiating is a way of life for
managers when managers deal with their superiors, boards of directors, even legislators.”3
G. Richard Shell, who wrote Bargaining for Advantage, asserts, “All of us negotiate many
times a day.”4 Herb Cohen, author of You Can Negotiate Anything, dramatically suggests
that “Your world is a giant negotiation table.” One business article on negotiation warns,
“However much you think negotiation is part of your life, you’re underestimating.”5
Anytime you cannot get what you want without the cooperation of others, you are
negotiating. Negotiation is an interpersonal decision-making process necessary whenever
we cannot achieve our objectives single-handedly. For this reason, negotiation is your key
communication and influence tool in most relationships.

1
Littleton, C. (2017, December 14). Disney-Fox deal: How secret, ‘smooth and cordial’ negotiations drove a
blockbuster acquisition. Variety. variety.com
2
Fisher, R., & Ury, W. (1981). Getting to yes (p. xviii). Boston: Houghton Mifflin.
3
Lax, D. A., & Sebenius, J. K. (1986). The manager as negotiator (p. 6). New York: Free Press.
4
Shell, G. R. (1999). Bargaining for advantage: Negotiation strategies for reasonable people (p. 76). New York:
Viking.
5
Walker, R. (2003, August). Take it or leave it: The only guide to negotiating you will ever need. Inc. inc.com

21

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22 Part I • Negotiation Essentials

Now, a depressing fact: over 80% of corporate executives and CEOs leave money on the
table. In this chapter, we explain why educated, smart, motivated people often do not realize
their negotiating potential. The good news is that you can do something about it.
The purpose of this book is to improve your ability to negotiate. We do this through an
integration of scientific studies on negotiation and real business cases. And in case you are
wondering, it is not all common sense. Science drives the best practices covered in this book.
We focus on business negotiations, but the principles in this book will no doubt help you in all
aspects of your negotiating life.6

THE MIND AND HEART


Across the sections of this book, we focus on the mind of the negotiator as it involves the
development of rational and thoughtful strategies for negotiation, designed to maximize
­
­economic value. We also focus on the heart of the negotiator because ultimately we care about
relationships and trust. The opening example clearly indicates that the trust developed between
Bob Iger and Rupert Murdoch laid the foundation for a successful negotiation deal.

Relationships versus Economics


In virtually any negotiation, two things are at stake: economic value (i.e., money and scarce
resources) and people (relationships and trust). This book focuses on how negotiators can be
effective in terms of maximizing both economic value and enhancing relationships at the bar-
gaining table. We base our teachings and best practices on scientific research in the areas of
economics and psychology, reflecting the idea that both the bottom line and relationships are
important for successful negotiation.7
Many people believe they need to choose between getting what they want or being liked.
These negotiators often believe that by “taking one for the team,” they can later maximize their
economic gain.8 This strategy is not advisable because we negotiate in long-term relationships
with people who have short-term memories. The relational sacrifice we make today may not
be remembered or reciprocated by the receiving party tomorrow. When people make economic
sacrifices in hopes of securing or maintaining relationships, they are often disappointed. In this
book, we focus on how negotiators can achieve their economic objectives and enhance their
long-term relationships, without simply paying more or receiving less.

Satisficing versus Optimizing


In this book, we distinguish between satisficing and optimizing. According to Nobel Laureate
Herb Simon, satisficing is the opposite of optimizing.9 Satisficing refers to doing just enough to
reach one’s minimum goals. When negotiators satisfice, they take shortcuts and do not maximize
their potential gains. Conversely, when negotiators optimize, they capture all of the potential
gain in a situation.

6
Gentner, D., Loewenstein, J., & Thompson, L. (2003). Learning and transfer: A general role for analogical encoding.
Journal of Educational Psychology, 95(2), 393–408.
7
Bazerman, M. H., Curhan, J. R., Moore, D. A., & Valley, K. L. (2000). Negotiation. Annual Review of Psychology, 51,
279–314.
8  
Thompson, L. L. (2017). Don’t take one for the team. Kellogg News and Events. kellogg.northwestern.edu/
news_articles
9
Simon, H. A. (1955). A behavioral model of rational choice. Quarterly Journal of Economics, 69, 99–118.

M01_THOM9461_07_GE_C01.indd 22 06/02/21 12:38 PM


Chapter 1 • Negotiation: The Mind and the Heart 23

In negotiation it is important to optimize one’s strategies by setting high aspirations and


attempting to achieve as much as possible. In contrast, when people satisfice, they settle for
something less than they could otherwise have. Over the long run, satisficing (or the acceptance
of mediocrity) can be detrimental to individuals and companies, especially when a variety of
effective negotiation strategies and skills can be effectively employed to dramatically increase
economic gains. We discuss these strategies in detail in the next three chapters.

Short- versus Long-Term Relationships


Another distinction people often struggle with concerns strategies they might use in short-
versus long-term relationships. The intuition is that if a person believed the negotiation was a
single-shot situation, they might behave differently—perhaps more aggressively—than if they
anticipated interacting with the counterparty in the future. In the networked, virtual world, this
distinction is nearly irrelevant because most of our interactions are recorded or known to others.
Even if a negotiator does not actually meet a given counterparty again, by virtue of social media,
a detailed ­account of their interaction would surely be visible for anyone to see. When the ex-
CEO of Uber Travis Kalnick got into a heated argument with an Uber driver, he did not realize
that Fawzi Kamel had a dashboard recording of the infamous conversation, nor that the record-
ing would be posted online.10 For these reasons, I encourage all of my students and executives
to assume that the details of their negotiation communication and behavior will be accessible for
anyone who might be interested, and consequently, to act as though all negotiations have long-
term implications.

Intra- versus Inter-organizational Negotiation


Would you imagine that there might be different strategies for negotiating with internal people
(i.e., inside one’s own organization) versus external people (i.e., people not employed by one’s
own organization)? At first blush, it would seem that internal negotiations might go more
smoothly and collaboratively than external negotiations. However, that is not always the case.
Envy and internal competition may in fact loom larger when people negotiate internally versus
externally.11

Low- versus High-Stakes Negotiation


On countless occasions, managers and executives in my classroom have commented that
they are not concerned that they failed to reach a win–win outcome because the negotia-
tion was “lowstakes.” When I then ask them how many “low stakes” negotiations they are
involved in per week, they often say as few as 3 and as many as 15, with an average of about
8 or 9. If we then extrapolate for just 1 year, this totals over 400 negotiations; across a span
of 5 years, that is 2,000 negotiations! Even if each negotiation was only $100, we are now
starting to approach a non-trivial economic value. Given that there are no costs for attempt-
ing to optimize, I encourage managers and executives to treat each negotiation—however
small the stakes may be involved—as a significant opportunity to enhance economic and
relational outcomes.

10
Newcomer, E. (2017, March 3) Uber’s taxicab confessions. Businessweek. businessweek.com
11
Menon, T. & Thompson, L. (2010, April). Envy at work. Harvard Business Review. hbr.org

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24 Part I • Negotiation Essentials

WIN–WIN, WIN–LOSE, AND LOSE–LOSE NEGOTIATION


Win–win negotiations are situations in which both negotiators optimize the potential joint gains.
In this sense, they have captured all the possible value in the relationship. In this book, we will
refer to win–win agreements as integrative agreements because the outcome is one that cre-
atively combines parties’ interests in a way that maximizes the joint economic value. Win–win
agreements are typically variable-sum as opposed to fixed-sum situations. Win–lose negotiation
refers to situations in which one party prevails at the other party’s expense. This may be because
one party has threatened the other party or that one party has capitulated to the other party.
Whereas win–win agreements are those in which both parties have gained, win–lose negotia-
tions are ones in which one party has gained at another’s expense. Lose–lose negotiations are
situations in which both parties have made sacrifices that are ultimately unwise or unnecessary,
resulting in an outcome that both parties find less than satisfying.12

NEGOTIATION AS A CORE MANAGEMENT COMPETENCY


Negotiation skills are increasingly important for managers. There are several reasons for
this, including: the knowledge economy, specialized expertise, information technology, and
globalization.

Knowledge Economy
Most businesses and industries today were not in existence 10–20 years prior. According to
the Bureau of Labor Statistics, more than 70,000 businesses have developed since 2010.13 In
the last five years, more than 15 startup companies, including Compass, Instacart, Carbon3D,
OpenDoor, Avant, and Blue Apron grew from nothing, and are now worth billions.14 Many com-
panies have disrupted traditional business models, spurring managers to reinvent themselves as
knowledge brokers in the information economy. Because the nature of knowledge work changes
rapidly, managers of all ages are continuously negotiating their professional identity, acquiring
new skills, and moving into new jobs, industries, and markets. Most people do not stay in the
same job that they take upon graduating from college or receiving their MBA degree.
Millennials are the largest group of professionals in the workforce.15 A large-scale
LinkedIn study reported that millennials change jobs four times (churns) in their first decade
out of college, compared to two job changes by Gen Xers in that same time period.16 LinkedIn
examined its 500 million users, and looking back 20 years, found that churn is accelerating,
especially in certain industries.17 A long-term study of baby boomers by the Bureau of Labor
Statistics revealed that people held an average of 11.7 jobs between age 18 and 48; 27% were

12
Thompson, L., & Hrebec, D. (1996). Lose–lose agreements in interdependent decision making. Psychological
Bulletin, 122(3), 396–409.
13
Bureau of Labor Statistics. (2018). Entrepreneurship and the U.S. Economy. bls.gov/bdm/entrepreneurship/bdm_chart1.htm
14
Carson, B. (2016, December 26). These 15 startups didn’t exist 5 years ago—now they’re worth billions. Business
Insider. businessinsider.com
15
Landrum, S. (2017, November 10). Millennials aren’t afraid to change jobs and here’s why. Forbes. forbes.com
16
Young, J. (2017, July 20). How many times will people change jobs? The myth of the endlessly-job-hopping millennial.
EdSurge. edsurge.com
17
Guy Berger, G. (2016, April 12). Will this year’s college grads job-hop more than previous grads? LinkedIn. blog.
linkedin.com/

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Chapter 1 • Negotiation: The Mind and the Heart 25

prone to “hop,” defined as having 15 or more jobs over a career; and 10% held 0–4 jobs.18 What
is changing is the stigma associated with job-hopping. Many career coaches encourage millen-
nials to change jobs every 3–4 years. The job-hopper is not simply in pursuit of higher wages;
they are willing to take pay cuts for the right job in a positive work culture and career growth.
Millennials are getting married and having children later than previous generations, and thus,
relocation is doable and often desirable.19

Specialized Expertise
The advent of decentralized business structures and the absence of hierarchical decision making
provide opportunities for managers, but also pose some daunting challenges. People must con-
tinually create possibilities, integrate their interests with others, and recognize the inevitability
of competition both within and between companies. Managers must be in a near-constant mode
of negotiating opportunities. Negotiation comes into play when people participate in joint ven-
tures, partnerships, product launches, reorganizations, and project teams.
The increasing interdependence of people within organizations, both laterally and hier-
archically, implies that people need to know how to integrate their interests and work across
­business units and functional areas.
For example, when Walmart realized that their hierarchical, lumbering internal culture did
not allow them to offer a responsive online retail presence, they recruited Jet.com founder Marc
Lore to run Walmart’s entire domestic e-commerce operation. Upon his arrival, a series of inter-
nal negotiations began surrounding how Walmart could shift its business model, yet still honor
the founding principle of value to their customers. Lore recognized the interdependence between
the brick and mortar marketplace and the online marketplace and integrated both sectors’ inter-
ests through creative internal negotiation.20
The increasing degree of specialization and expertise held by businesspeople indicates
that people are more and more dependent on others. However, other people do not always have
­similar incentive structures, so managers must know how to promote their own interests while
simultaneously creating joint value for their organizations. This balance of cooperation and
competition requires negotiation. For example, Cheng Wei, founder and CEO of Didi Chuxing,
was in a cooperative relationship with legendary investor Masayoshi Son, when Son wanted to
invest in Wei’s company; but when Wei refused Son’s investment, thereby creating a competitive
situation in which Son threatened to instead invest in a rival company. Ultimately, Wei relented
and took the $5 billion investment for the tech startup.21

Information Technology
Information technology also provides special opportunities and challenges for negotiators.
Information technology has created a culture of 24/7 availability. With technology that makes it
possible to communicate with people anywhere in the world, managers are expected to ­negotiate
at a moment’s notice. Because customers expect companies to be accessible to them 24/7,

18
Bureau of Labor Statistics. (2018). National Longitudinal Surveys. United States Department of Labor. bls.gov/nls/
nlsfaqs.htm#anch43
19
Landrum, S. (2017, November 10). Millennials aren’t afraid to change jobs and here’s why. Forbes. forbes.com
20
Stine, B., & Boyle, M. (2017, May 4). Can Wal-Mart’s expensive new e-commerce operation compete with Amazon?
Bloomberg. bloomberg.com
21
Storm, P., Alpeyev, P., & Chen, L. (2018, January 8). Masayoshi Son has a deal you can’t refuse. Businessweek, p. 14.

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26 Part I • Negotiation Essentials

businesses have reimagined how to respond quickly. For example, in 2016, only 2 million busi-
nesses were on Instagram; in 2017, 25 million had accounts, and over 80% of Instagram users
voluntarily connect with these business accounts. Conversely, people who are not online feel the
pressure to perform when they finally do log back on. For example, Arianna Huffington, founder
of The Huffington Post, promised her daughter that during her college tour she would not check
her smartphone. Huffington kept her promise, not turning on her smartphone during the tour, but
while her daughter slept in the hotel room that night, she admitted to staying up all night answer-
ing e-mails and making sure she didn’t miss anything from the few hours she took off.22

Globalization
Most managers must effectively cross cultural boundaries to do their jobs. Setting aside obvious
language and currency issues, globalization presents challenges in terms of different norms of
communication. Chip Starnes, cofounder of Specialty Medical Supplies, learned a harrowing
lesson in cultural fit when he showed up at his factory near Beijing, China, to deliver severance
payments for 30 workers laid off when Starnes moved a company division to Mumbai, India.
The remaining 100 employees, convinced the entire factory would be closed, demanded sever-
ance and barricaded Starnes inside the plant for 6 days. Cases of managers being held captive
by dissatisfied workers, while police look the other way, is not a rare circumstance in China,
a cultural fact that Starnes certainly learned. After accepting the workers’ demands—giving
97 workers 2 months’ salary and compensation, and rehiring the previously laid-off workers on
new contracts—Starnes was released. Most notably, Starnes was able to learn from his leader-
ship failure and developed a new product to manufacture in Shenzhen. 23
Managers need to develop negotiation skills that can be successfully employed with
people of different nationalities, backgrounds, and personalities. Consequently, a negotiator who
has developed a bargaining style that works only within a narrow subset of the business world
will suffer, unless they broaden their negotiation skills to effectively work with different people
across functional units, industries, and cultures.24 It is a challenge to develop negotiation skills
general enough to be used across different contexts, groups, and continents, but specialized
enough to provide meaningful behavioral strategies in a given situation.

NEGOTIATION TRAPS
Judging from their performance in realistic business negotiation simulations, most people fall
short of their potential at the negotiation table.25 Numerous business executives describe their
negotiations as win–win only to discover that they left hundreds of thousands of dollars on
the table. Fewer than 4% of managers reach win–win outcomes when put to the test,26 and the

22
Huffington, A. (2013, March 14). Arianna Huffington on burning out at work. Businessweek. businessweek.com
23
MacLeod, C. (2013, June 27). U.S. exec Chip Starnes freed from China factory. USA Today. usatoday.com; American
boss hostage arrives back to U.S. (2013, June 28). Associated Press. ap.org.; Pounds, M. (2016, June 13). Coral Springs
business owner, taken hostage in China in 2013, is returning there with new company. Sun Sentinel. sun-sentinel.com
24
Bazerman, M. H., & Neale, M. A. (1992). Negotiating rationally. New York: Free Press.
25
Neale, M. A., & Bazerman, M. H. (1991). Cognition and rationality in negotiation. New York: Free Press; Thompson, L.,
& Hrebec, D. (1996). Lose–lose agreements in interdependent decision making. Psychological Bulletin, 120(3), 396–409;
Loewenstein, J., Thompson, L., & Gentner, D. (2003). Analogical learning in negotiation teams: Comparing cases promotes
learning and transfer. Academy of Management Learning and Education, 2(2), 119–127.
26
Nadler, J., Thompson, L., & van Boven, L. (2003). Learning negotiation skills: Four models of knowledge creation
and transfer. Management Science, 49(4), 529–540.

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Chapter 1 • Negotiation: The Mind and the Heart 27

incidence of outright lose–lose outcomes is 20%.27 Even on issues where negotiators are in per-
fect agreement, they fail to realize this 50% of the time.28
In our research and teaching, we have observed and documented four major shortcomings
in negotiation:
• Leaving money on the table (also known as “lose–lose” negotiation) occurs when nego-
tiators fail to recognize and capitalize on their win–win potential.
• Settling for too little (also known as “the winner’s curse”) occurs when negotiators make a
too-large concession, resulting in a too-small share of the bargaining pie.
• Walking away from the table occurs when negotiators reject terms offered by the other
party that are demonstrably better than any other option available to them. Sometimes this
shortcoming is traceable to hubris or pride; other times it results from gross miscalculation.
• Settling for terms that are worse than your best alternative (also known as the “agree-
ment bias”) occurs when negotiators feel obligated to reach agreement even when the
settlement terms are not as good as their other alternatives.
This book reveals how to avoid these errors, create value in negotiation, get your share of
the bargaining pie, reach agreement when it is profitable to do so, and quickly recognize when
agreement is not a viable option in a negotiation.

BECOMING AN EFFECTIVE NEGOTIATOR


In reviewing all of the ways that negotiators fail, it is important to be clear about what it means
to be an effective, successful negotiator. Successful negotiation strategies involve preparation,
strategy at the negotiation table, and then, post-negotiation behaviors. Exhibit 1-1 summarizes
the behaviors and measures that are important to consider when evaluating negotiation perfor-
mance. Prior to negotiation, a key skill is to initiate negotiations and then, prepare effectively.
During negotiation, the negotiator executes their planned strategy and should be ready to
evaluate the quality of negotiated settlements. Following the negotiation, there is always concern
about whether the agreed upon terms will be honored and how the negotiation will affect one’s
reputation. Indeed, investigations of contract negotiations consider four key objectives in assess-
ing the quality of contracts: (1) how to maximize the likelihood of reaching a good agreement;
(2) how to reach an agreement that fulfills the intended purpose; (3) how to reach an agreement
that will last; and (4) how to reach an agreement that will lead to subsequent negotiations.29
The dramatic instances of lose–lose outcomes, the winner’s curse, walking away from the
table, and the agreement bias raise the question of how people can become more effective at the
bargaining table. Fortunately, we’ve studied this question in depth and have developed a method
by which people can measurably improve their performance.
In this book, we focus on three major negotiation skills: creating value, claiming value,
and building trust. By the end of this book, you will have a mental model that will allow you to
prepare for virtually every negotiation situation. By preparing effectively for negotiations, you
can enjoy the peace of mind that comes from having a strategic plan. Things may not always go

27
Thompson & Hrebec, “Lose–lose agreements in interdependent decision making.”
28
Thompson & Hrebec, “Lose–lose agreements in interdependent decision making.”
29
Tomlinson, E.C., & Lewicki, R. J. (2015). The negotiation of contractual agreements. Journal of Strategic Contracting
and Negotiation, 1(1), 85–98.

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28 Part I • Negotiation Essentials

EXHIBIT 1-1
Evaluating the Success of Negotiation

Prior to Negotiation Negotiation Post-Negotiation


Initiate negotiation Strategy Post-deal implementation
Preparation • Opening Durability
• Planning worksheet • First offer(s)
• Counter-offers Reputation
• Assess BATNA
• Develop reservation • Substantiation and Willingness to negotiate
price ­persuasion again
• Develop target price • Concessions
Trust
­(aspiration) Agreements
• Efficiency
• Economic value
• Individual gain
• Joint gain
Relational value
• Satisfaction
• Fairness

according to plan, but your mental model will allow you to perform effectively and, most impor-
tant, to learn from your experiences.
There are three key elements to improving your negotiation skills: feedback, strategy, and
focused practice.

Feedback
Experience, in the absence of feedback, is largely ineffective in improving negotiation skills.30
For example, can you imagine trying to learn mathematics without ever doing homework or tak-
ing tests? Without diagnostic feedback, it is very difficult to learn from experience.
People with more experience grow more confident, but the accuracy of their judgment and
the effectiveness of their behavior do not increase in a commensurate fashion.31 Overconfidence
can be detrimental because it may lead people to take unwise risks. In most real-world negotia-
tion siutations, managers do not receive feedback on how well they are doing. In our research,
we have found that people who are provided with feedback immediately following their nego-
tiation are more likely to adjust their strategies and perform better in subsequent negotiations.
Of the many types of feedback that are potentially available to negotiators, information about

30
Loewenstein, Thompson, & Gentner, “Analogical learning in negotiation teams”; Nadler, Thompson, & van Boven,
“Learning negotiation skills”; Thompson, L., & DeHarpport, T. (1994). Social judgment, feedback, and interpersonal
learning in negotiation. Organizational Behavior and Human Decision Processes, 58(3), 327–345; Thompson, L.,
Loewenstein, J., & Gentner, D. (2000). Avoiding missed opportunities in managerial life: Analogical training more pow-
erful than case-based training. Organizational Behavior and Human Decision Processes, 82(1), 60–75.
31
Fenton-O’Creevy, M., Nicholson, N., Soane, E., & Willman, P. (2003). Trading on illusions: Unrealistic perceptions of
control and trading performance. Journal of Occupational and Organizational Psychology, 76(1), 53–68.

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Chapter 1 • Negotiation: The Mind and the Heart 29

the counterparty’s interests and priorities are particularly important.32 For example, negotiators
who received feedback about the counterparty’s interests immediately following a negotiation
showed the greatest improvement in subsequent negotiations.33

Strategy
Once a negotiator has learned that they have not optimized in a given situation, the obvious ques-
tion becomes, “What should I have done differently?” The negotiation strategies we introduce in
this book are designed to be relevant across situations and therefore, are not context-dependent.
Stated another way: the strategies that lead to success in a pharmaceutical negotiation are also
those that lead to success in an oil products negotiation. In fact, our research suggests that it is
beneficial for students of negotiation to learn negotiation skills in an industry or domain that
they are unfamilar with.34 Why? Learning negotiation skills only in a context in which one has
depth of expertise may lead to context-dependence, such that the skills do not transfer.35

Focused Practice
A key step in learning to be an effective negotiator is behavioral practice. It is one thing to pas-
sively learn about negotiation skills, it is quite another to put them into practice via simulations.
In our research, we’ve found that experiential learning is dramatically more effective than didac-
tic learning (i.e., merely listening to a lecture).36

DEBUNKING NEGOTIATION MYTHS


When we delve into managers’ theories and beliefs about negotiation, we often find that they
operate with faulty beliefs. Before we begin our journey toward developing a more effective
negotiation strategy, we need to dispel several faulty assumptions and myths about negotiation.
Belief in these myths may hamper people’s ability to learn effective negotiation skills and in
some cases, reinforce poor negotiation skills. In this section, we expose four of the most preva-
lent myths about negotiation behavior.

Myth 1: Negotiations Are Fixed-Sum


Probably the most common myth is that most negotiations are fixed-sum, or fixed-pie, in
nature, such that whatever is good for one person must ipso facto be bad for the other party.
The truth is that most negotiations are not purely fixed-sum; in fact, most negotiations are
variable-sum, meaning that if parties work together, they can create more joint value than if they
are purely combative. However, effective negotiators also realize that they cannot be naively

32
Van Boven, L., & Thompson, L. (2003). A look into the mind of the negotiator: Mental models in negotiation. Group
Processes & Intergroup Relations, 6(4), 387–404.
33
Thompson, L. & Hastie, R. (1990). Judgment tasks and biases in negotiation. In B. H. Sheppard, M. H. Bazerman,
and R. J. Lewicki (Eds.), Research on negotiation in organizations: A series of analytical essays and critical reviews.
(pp. 31–54). Greenwich, CT: JAI Press.
34
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Another random document with
no related content on Scribd:
No wonder the Metropolitan Secret Agency had always known so
much about the intimate affairs of everybody in London who
“mattered,” and about the secret concerns of rich county folk
throughout the country! The knowledge possessed by the notorious
Bertha Trost of Clifford Street, who during the war had been quietly
pushed out of the country as an “undesirable alien” had been
insignificant by comparison, people said. And the Agency’s “methods
of procedure” had been extremely simple. One of their plans had
consisted in worming out of useful clients as much private
information as possible of a compromising nature, not only about
themselves, but about their acquaintances and friends, piecing it all
together, and then, at a later date, instructing some accomplice to
approach or write anonymously to the prospective victims,
threatening them with public exposure if they refused to pay heavily
for secrecy. And so cleverly was this always done that the Agency
invariably safeguarded itself against risk of discovery.
Another method of procedure, equally effective, consisted in
selling secretly, at an enormous profit, the strange Chinese drug
smuggled into the country by Alphonse Michaud, and accomplices
would then threaten with exposure persons having it in their
possession.
In addition to this, Michaud and other members of the Agency
Gang would administer the drug in a particular way themselves, so
that it deadened their victims’ memory from a time prior to the period
of unconsciousness which it produced. It was, the newspaper article
declared, a most extraordinary compound, and, being colorless and
devoid of all smell, could be administered without arousing the least
suspicion of its presence. For which reasons, no doubt, some
members of the gang had gone so for as to dope other members
with it, when they saw that by doing so they could themselves
benefit.
That had happened, it seemed, on the occasion when Archie La
Planta had been called out of the box at the Alhambra whilst
attending a performance of the Russian Ballet. On that night he had
met a friend in the foyer, a member of the gang, who had suggested
his joining him in a drink in his rooms, which were close by, in
Charing Cross Road. La Planta, of course, all unsuspecting, had
walked across to his friend’s rooms, yet when he had recovered
consciousness in his own chambers in Albany, all recollection of his
having gone to those rooms in Charing Cross Road and afterwards
being conducted back to his own chambers by his “friend,” had
completely faded from his memory.
And the reason he had been doped that night and in that way—​
this the man who had doped him confessed afterwards under cross-
examination—​had been to keep him away from Mrs. Mervyn-
Robertson’s supper party, a few hours later at her own house, where
the same ruse had been employed by the same man, with a woman
accomplice, who unseen had then taken from her the key of her
safe, which they had then rifled, taking not only the valuables it
contained, but inadvertently a packet of letters which proved to be
the letters Cora Hartsilver had written to Sir Stephen Lethbridge, and
those he had written to her. These documents Jessica had obtained
some time before, by bribery, from servants dismissed by Cora and
by Sir Stephen for inefficiency, and she had been holding them with
a view to using them some day as levers to extort money from Cora;
but the woman who had stolen them from the safe had taken that
step herself and sent Cora the anonymous letter which had reached
her when in Jersey.
And all through it was the same. To right and left clients of the
house with the bronze face and intimate friends of Jessica, of
Stapleton, of La Planta’s, of Mrs. Stringborg and her husband, and of
other members of the Agency Gang, had been secretly pilloried and
made to pay, while from time to time members of the gang had
themselves been victimized by one or other of their own traitorous
accomplices, generally through the medium of the Chinese drug.
Levi Schomberg, though not a member, had by accident been made
aware of the existence of the gang, its ramifications and its methods,
a client to whom he had once advanced a considerable sum having
promised to reveal what he called “the whole organization of an
extraordinary secret society of criminals operating in this country and
on the Continent” if Levi would cancel a portion of the debt. This the
moneylender had, after some demur, agreed to do, with the result
that afterwards he had been himself able to extort money from
Jessica and Stapleton, and other members, under threats of
exposure, in precisely the same way that they levied blackmail on
their victims.
“And La Planta,” Hopford said, as he and others were talking the
case over in the reporters’ room some time after his article had
appeared. “La Planta admits that he drugged Levi Schomberg in the
box at the Albert Hall on the night of the ball, though he swears it
was not his intention to poison him. Either he mistook the dose he
administered in the whisky and soda, he says, or else Levi must
have had a weak heart—​Doctor Johnson will probably have
something to say about that. La Planta declares, too, that he gave
the drug on the advice of Stapleton, who handed him the actual
dose, saying it was the right amount. Whether it was or not, I
suppose we shall never know, though Stapleton has yet to be cross-
examined. And another thing we shall probably never know is why
Levi Schomberg disliked Mrs. Hartsilver so intensely. He never
missed an opportunity of maligning her when her back was turned.
Can he at one time or another have tried to extort money from her,
and failed? Or have tried to make love to her, and been turned
down? Or can he have had some reason for fearing her?”
“Talking of that, Hopford,” his colleague said, after a pause, “do
you remember the night you stood up so stoutly for Mrs. Hartsilver,
the night I told you that you must be biased in her favor because you
knew her socially? What, after all, was the truth about those rumors
concerning her and concerning Captain Preston? Did you ever find
out? I tried to, but I heard nothing more.”
“Why,” Hopford answered, “that was more of the Agency Gang’s
dirty work. They invented a scandalous story, which they put up to
Preston when he was in his house-boat during Henley week. The
story would take too long to tell—​George Blenkiron got it at first hand
from the Commissioner of Police, and retailed it to me practically
word for word. The upshot was that Preston would have either to
abet—​assisted by Miss Hagerston, whom, I see, he is to marry next
week—​an attempt to blackmail Mrs. Hartsilver, or himself be ruined
financially, which of course would have ended his army career.
Members of the gang, Blenkiron tells me the Commissioner of Police
assures him, were the originators of those unwholesome rumors
which, you remember, were common talk in clubland.”
“But how could they ruin Preston? What had he ever done to give
the gang an opening?”
“Nothing dishonorable, of course; I don’t believe he could be
dishonorable if he tried. But it seems that years ago he backed two
bills for a brother officer whom he looked upon as a friend. The
fellow turned out to be a scoundrel; was cashiered, later became one
of the gang’s ‘creatures,’ and actually faked the bills into bills for
much larger amounts. And those faked bills were, if Preston refused
to help in the plot against Mrs. Hartsilver—​it had to do with some
compromising letters she had written—​to be presented for payment
this month. Poor chap! No wonder he has been looking so dreadfully
ill of late. It would be interesting to know how many suicides the
Agency Gang has been responsible for directly and indirectly. Since
that night at Henley Preston has always carried a loaded pistol in his
pocket, and he vowed he would shoot that former brother officer of
his dead if ever he met him again. And he would have done it, too,
and have chanced the consequences.
“As for that robbery of Marietta Stringborg’s necklace at the ball at
the Albert Hall, the whole thing was a bluff. The pearls were not real,
and it was Stringborg himself who took them from his wife at supper
and slipped them into Miss Hagerston’s bag. Jessica Mervyn-
Robertson had become furious at Yootha Hagerston’s determination
to find out all about her, furious, too, with Mrs. Hartsilver, and the
others who were making the same attempt—​she had heard about
these attempts from Stothert, because Preston, Mrs. Hartsilver and
Miss Hagerston had several times consulted the Metropolitan Secret
Agency—​and she had made up her mind to ruin them financially and
socially, and indeed that, her first attempt to disgrace Miss
Hagerston, might well have been accomplished.
“Really,” he continued, “there would seem to be no end to the
machinations to which the Agency-Gang have had recourse within
the past few years. We shall never know one-tenth of the crimes
they committed or tried to commit. Several of the gang’s members
were actually staying with Sir Stephen Lethbridge at his place in
Cumberland, Abbey Hall, as his guests, when he shot himself. By
the way, I hear that Fobart Robertson has at last been discovered,
living in a garret in Lyons, and that he is being brought over to give
evidence against his wife and Stapleton and others regarding the
secret exportation of the Chinese drug from Shanghai long ago. He
ought to prove a useful witness.”
And so the clouds which had so darkened Yootha’s and Cora’s
happiness, the happiness also of Preston and of Johnson, had at
last almost rolled away. The four had arranged to be married towards
the end of the month, and already were busy buying trousseaux,
acknowledging letters of congratulation and the receipt of presents,
and attending to the many other matters which so engross
prospective brides and bridegrooms. George Blenkiron had
promised to act as best man to his life-long friend, Charles Preston,
and the latter had decided to send in his papers at an early date, for,
though an excellent soldier, the monotonous life of an officer in
peace time would, he knew, bore him to extinction.
Harry Hopford had asked Johnson to allow him to be his best
man, “in return,” as he put it, “for services rendered, and the way I
helped to bring about your engagement!” Johnson suspected, and
Cora knew, that Hopford himself had been greatly attracted by “the
beautiful widow,” as she was commonly called; and perhaps had the
lad not had sense enough to realize that for him to hope to marry
Cora when almost his sole source of income consisted of the salary
he was paid by the newspaper to which he was attached, and the
payments he received from miscellaneous other journals to which he
contributed, was hopeless, he might have felt tempted to press his
own suit.
True, he had once gone so far as to think the matter over
seriously, carefully weighing the pros and cons, but the decision he
had come to was that Cora did not care for him sufficiently to be
likely to accept him even should he have the audacity to propose to
her. The thought that if he did propose to her and she accepted him
he would, after the marriage, be in a position to abandon his
profession and live thenceforward on her income, of course, never
entered his mind.
“I pity any woman who marries a journalist or a literary man,” he
said mentally, as he considered possibilities one night over a cigar.
“We writing folk may have our good points, but I think our chronic
irritability more than outweighs them, to say nothing of our
inconstancy where women are concerned, our ‘sketchiness,’ and our
lack of mental balance. If I were a woman I would any day sooner
marry a lawyer or a stockbroker than a man who earns his livelihood
by his pen. Such people at any rate give their wives a sporting
chance of being able to live with them in peace, whereas we news
seekers and scribblers—​—”
He shrugged his shoulders, and smiled as he mixed himself a
brandy and soda. Yet even then he could not wholly dispel from his
imagination the picture of Cora Hartsilver. Suddenly his telephone
rang, and he unhooked the receiver.
A fire had broken out in Smithfield and was making rapid
headway—​a big fire—​steamers hastening to it from all directions—​
yes, half a column, but a column if possible—​yes, not later than
midnight—​—
He picked up his notebook and thrust it into his pocket, switched
off the light and went downstairs. A taxi was passing as he reached
the street, and he hailed it.
“Yes,” he said, as he passed swiftly along Oxford Street, “a
journalist’s wife must have a dog’s life!”
Some days later the newspapers contained an interesting “story,”
regarding a theft of diamonds some years previously in Amsterdam
from a well-known diamond merchant whose place of business had
then been situated in the Kalverstraat. The arrest of Archie La Planta
in London in connection with the Agency Gang crimes had, it
seemed, attracted the attention of the Amsterdam police, and among
the people in England with whom they had communicated was a
certain Major Guysburg. Eventually, the story ran, Major Guysburg
had been called upon to identify two men still residing in Amsterdam,
one of whom, it then transpired, had shared lodgings with La Planta
at the time of the robbery, and had now turned King’s evidence,
while the other had once been Alphonse Michaud’s secretary. After a
good deal of legal quibbling, Michaud was proved actually to have
stolen stones which he had himself insured, and for which, after the
robbery, he had been paid his claim in full.
On the night before their wedding—​for finally Cora and Johnson
and Yootha and Preston had decided to get married in London on
the same day—​the two happy couples with their best men, Hopford
and Blenkiron, sat at supper in the grill of the Piccadilly. Not too near
the band played the inevitable “Dardanella”; around them supper
parties chattered and laughed loudly; waiters carrying dishes and
wine hurried hither and thither as though their lives depended upon
rapidity of action.
Presently the manager approached, a broad smile on his pleasant
face. He came up to Preston.
“At the request of Mr. Hopford,” he said, “I have just informed six
officers of the Devon Regiment, who are dining in a private room
upstairs, that you and these ladies and gentlemen are dining here;
and on Mr. Hopford’s instructions I have given them other
information.”
His smile widened.
“And the officers present their compliments and wish to say they
hope you and your friends will join them in their room at your
convenience.”
“What are their names?” Preston asked.
The manager told him.
“Good heavens!” Preston exclaimed. “It’s my dear old C.O., and
five of the very best—​we were all in France together about the time
of the first attack on Thiepval. I haven’t seen them since.”
He turned and addressed the manager:
“Will you please say that we accept the kind invitation, and will be
up shortly? Harry, you rascal, how did you find out about these
officers dining here?”
“Quite by accident, when I was prowling in search of news this
morning. My first idea was to look up your old C.O. at once. Then I
decided it would be better, because less formal, if I sprang the news
on him to-night, while they were at dinner, that you were to be
married to-morrow, and that we were all here to-night. I knew they
would be glad to see you again.”
He looked at Yootha.
“Is anything the matter?” he asked, for she was suddenly looking
sad.
“Nothing at all,” she replied with a forced smile, though her moist
eyes belied her words. “I was thinking of my brothers, both still in
Mespot, and apparently likely to remain there. I have not seen either
for over two years, and to-night I feel a longing to have them here.
Their presence would complete my happiness.”
“I wouldn’t worry about that,” Hopford answered with twinkling
eyes. “News came through to the office this evening, just as I was
leaving, that your brothers’ regiment has been ordered home, so
probably you will find your brothers awaiting you on your return to
London from your honeymoon unless,” he smiled mischievously,
“they go direct to Cumberland to stay with your father and your
stepmother!”

THE END.
Transcriber’s Note:
Words may have multiple spelling variations or inconsistent
hyphenation in the text. These have been left unchanged. Obsolete
and alternative spellings were retained. Misspelled words were
corrected. Final stops missing at the end of sentences and
abbreviations were added.
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