Introduction to International Negotiations

Getting Ready to Implement the Strategy: The Planning Process

• Know your limits and alternatives
• Set your objectives (targets) and opening bids (where to start)
• Target is the outcome realistically expected
• Opening is the best that can be achieved
• Assess constituents and the social context of the negotiation

Getting Ready to Implement the Strategy: The Planning Process

• Analyze the other party
• Why do they want what they want?
• How can I present my case clearly and refute the other party’s arguments?
• Present the issues to the other party

Influencing negotiations

• Reciprocity (law of the universe)
• Pertain more to pattern of concessions than to degree.
• We feel upset if receiving a favor we cannot return.
• Consistency
• Need to appear to be consistent in our behaviors to others as well at to ourselves (psychological commitment)
• Social proof
• The behavior of others determine what is desirable, correct.
• Liking. (Flattery can get you everywhere)
• Make concession to people they like
• Authority
• We are inclined to accept opinions of people we consider authorities
• Scarcity.
• Rare things appear more appealing.

Making the first move

• Making concessions
• Reciprocity (i.e.. conditional concessions)
• Size (Normally higher level concession in initial phase?)
• Bargaining in good faith
• Don’t falsify intention nor information (reputation again)
• Offers remain valid until rejected or even after
• Common concerns
• Sharing information about reservation price (NO)
• Negotiation is a matter of strategy, not trust.
• Lying about reservation price (NO), the liar gets caught.
• Tough or soft negotiation stance? Strategic creativity!
• Making the final offer (no rush).