Tag Archives: Daniel Ames

Precise Negotiation Offers Yield Better Bargaining Results

Malia F Mason

Malia F Mason

Opening negotiation offers usually anchor the discussion and shape settlement values.
Many people make opening offers in “round” numbers like USD$10 instead of “precise” numbers like USD$9.
This strategy rendered less effective results in negotiation experiments, reported Columbia’s Malia Mason, Alice J. Lee, Elizabeth A. Wiley, and Daniel Ames.

Y Charles Zhang

Y Charles Zhang

Negotiators can improve negotiation outcomes by specifying offers in precise values because they more potently anchor the negotiation range.
In addition, negotiators who proposed precise offers were perceived as more confident, credible, and “well-informed” regarding actual value.

Norbert Schwartz

Norbert Schwartz

In a study of consumer confidence in various offer types,  University of Michigan’s Y. Charles Zhang and Norbert Schwarz of University of Southern California reported that some recipients of precise offers viewed these proposals as “inflexible.

However, recipients of precise offers made more conciliatory counter-offers with smaller adjustments and more favorable final settlements.
Precise offers were associated with more favourable final deals even when the negotiator opened with a less ambitious precise offer.

Martin Schweinsberg

Martin Schweinsberg

Precise offers are less likely to be seen as “aggressive” by a co-negotiator, according to INSEAD’s Martin Schweinsberg collaborating with Gillian Ku and Madan M. Pillutla of London Business School’s and Cynthia S. Wang of Oklahoma State University.
This enables negotiators to present ambitious first offers while avoiding “offending” a negotiation partner and stalling progress toward settlement.

Gillian Ku

Gillian Ku

This risk of stalemated negotiation increases if negotiators see themselves in a lower-power position and receive an extreme offer.
These negotiators may be more willing to end negotiations,

Manoj Thomas

Manoj Thomas

Precise offers can obscure their actual value, noted Cornell’s Manoj Thomas and Vrinda Kadiyali with Daniel H. Simon of Indiana University.
Buyers underestimated the size of precise prices, particularly under uncertain conditions:  U.S. homebuyers paid more when list prices were precise.

Vrinda Kadiyali

Vrinda Kadiyali

Precise offers provide some of the benefits of favorably anchoring negotiation discussions while reducing risks of “offensive” extreme offers.

-*How effective have you found “precise” opening offers in achieving your negotiation goals?

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©Kathryn Welds

“Strategic Umbrage” as Negotiation Strategy

Daniel R Ames

Daniel R Ames

Negotiation assertiveness style and understanding how others perceive assertive behaviours can determine success in bargaining, according to Columbia University’s Daniel Ames and Abbie Wazlawek.

Individuals who apply more assertiveness than required to achieve their goals have less-accurate self-perception than less assertive people, and both groups experience “self-awareness blindness.

Abbie Wazlawek

Abbie Wazlawek

A mismatch between negotiation partners’ ratings of appropriate assertiveness was linked to poorer negotiation outcomes for both parties.

Nearly 60% of negotiators who were rated as appropriately assertive but felt over-assertive (“line-crossing illusion”) negotiated the inferior deals for themselves and their counterparts. 

This finding suggests that disingenuous emotional displays (such as “strategic umbrage” – feigned anger) were associated with a negotiation partner seeking the first acceptable deal
This reduces the opportunity to achieve an optimal outcome for both participants.

Jeffrey Kern

Jeffrey Kern

Negotiators can increase their accuracy in judging their negotiation partner’s impression of their degree of assertiveness in the negotiation, (“meta-perception“) by:

-Participating in 360 degree feedback,

-Increasing skill in listening for content and meaning,

Considering whether negotiation proposals are reasonable in light of alternatives,

-Requesting feedback on reactions to “strategic umbrage” displays to better understand perceptions of “offer reasonableness,

-Evaluating costs and benefits of specific assertiveness styles.

Gary Yukl

Over-assertiveness may provide the benefit of “claiming value” in a negotiation but may lead to ruptured interpersonal relationships, according to Jeffrey M. Kern of Texas A&M, SUNY’s Cecilia Falbe and Gary Yukl.

Cultural norms for assertiveness vary across countries. 
In “low context” cultures like Israel, dramatic displays of emotion and assertion are  expected in negotiations.
In contrast, “high context” cultures like Japan, require more nuanced assertiveness, with fewer direct disagreements and fewer “strategic umbrage” displays, according to Edward T. Hall, then of the U.S. Department of State.

Edward T Hall

Edward T Hall

Under-assertiveness may minimise interpersonal conflict, but may lead to poorer negotiation outcomes and undermined credibility in future interactions, according to Ames’ related research.

To augment a less assertive style, he suggested:

  • Set slightly higher goals,
  • Reconsider assumptions that greater assertion leads to conflict,
  • Increase proactivity to show respect and improve outcomes,
  • Observe outcomes when collaborating with more assertive other people.

To modulate a more assertiveness style:

  • Make slight concessions to increase trust with others,
  • Evaluate the outcomes when collaborating with less assertive other people.

*How do you match your degree of assertiveness to negotiation situations?

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©Kathryn Welds