Building Blocks of Negotiation: Perception, Cognition, and Emotions in Negotiation
Building Blocks of Negotiation: Perception, Cognition, and Emotions in Negotiation
Presented by :
Jaideip Khaatak, Research Scholar
IMSAR, MDU, Rohtak
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Perception, Cognition, and
Emotion in Negotiation
• The basic building blocks of all social
encounters are:
• Perception
• Cognition
• Framing
• Cognitive biases
• Emotion
Perception
• Perception is:
• The process by which individuals
connect to their environment.
• A complex physical and psychological
process
• A “sense-making” process
The Process of Perception
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Cognitive Biases in Negotiation
• Negotiators have a tendency to make
systematic errors when they process
information.
• These errors, collectively labelled cognitive
biases, tend to impede negotiator
performance.
Irrational Escalation of Commitment and
Mythical Fixed-Pie Beliefs
• Negotiators maintain commitment to a course
of action even when that commitment
constitutes irrational behaviour
• Mythical fixed-pie beliefs
– Negotiators assume that all negotiations (not just
some) involve a fixed pie
Anchoring & Adjustment,
Issue Framing & Risk
• The effect of the standard (anchor) against which
subsequent adjustments (gains or losses) are
measured
• The anchor might be based on faulty or
incomplete information, thus be misleading
• Issue framing and risk
• Frames can lead people to seek, avoid, or be
neutral about risk in decision making and
negotiation
Availability of Information and
the Winner’s Curse
• Operates when information that is presented in
vivid or attention-getting ways becomes easy to
recall.
• Becomes central and critical in evaluating events
and options
• The winner’s curse
• The tendency to settle quickly on an item and
then subsequently feel discomfort about a win
that comes too easily
Overconfidence and the Law of Small
Numbers
• The tendency of negotiators to believe that their
ability to be correct or accurate is greater than is
actually true
• The law of small numbers
• The tendency of people to draw conclusions
from small sample sizes
• The smaller sample, the greater the possibility
that past lessons will be erroneously used to
infer what will happen in the future
Self-Serving Biases and Endowment Effect