Week 5 Assignment - Astri Irdiana x40

8/9/2019 Week 5 Assignment - Astri Irdiana x40

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Astri Irdiana Ryanti

MBA X40 / 29108370

Week 5 assignment

3. Do you agree with Getting to Yes concept? Give comment.

Yes, I do agree with the GTY concept. GTY shows us how to act in a negotiation objectively,

gain power and get mutual gains from it, so a negotiation can reach an agreement on ours

advantages. GTY also uses BATNA variable and considered it to be important when you

negotiate and want to compare your bargaining power with the opponents. BATNA is

actually very measurable and representative quantity that can be used in negotiation.

4. Read Bazermans chapter 9-11.

- Why do you need rational framework for negotiation ?Rational framework is needed in a negotiation especially so people can objectively

evaluate each partys alternatives to a negotiated agreement, interests, and priorities inorder to get a wealth of information about how far they will move before actually walking

away from negotiating table. Also, rational framework is used so people can understand

the integrative and distributive components of negotiation, in order to enlarge the pie of

available resources and increase the share.

- How do you prepare yourself to be rational negotiator before you negotiate?To be rational negotiator, there are some steps that must be done:

o Consider the potential consequences of failing to reach an agreement (BATNA), so youcan calculate the lowest value acceptable to you for a negotiated agreement.

o Establish your and your opponents reservation price by assessing the highest price youwant to pay.

o Remember that the goal is not just an agreement, but to reach agreement that is betterfor you than what you would get without one.

o Assess what your current negotiation opponent will do if they do not reach anagreement with you.

o Assess the true issues in the negotiation by getting to know the interests of the partiesand how important is that issue to you and your opponent.

o Analyze the bargaining zone and find out where the trade-off exists.o Assess the degree to which you might be affected by a tendency to irrationally escalate

commitment to a previously chosen strategy, the mythical fixed-pie, anchoring and

adjustment, the framing of the negotiation, the availability of information, the winners

curse, and overconfidence.


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MBA X40 / 29108370

Week 6 assignment

1. Bazerman (1992), Chap 2-8

- What factors do influence the irrational escalation of commitment? How to preventthe bias?

The irrational escalation of commitment may happen because people are inconsistent with

their own self interests. The desire to win may cause recklessness and cause misdirected

persistence, they will lead to biases in perception and judgment and false impressions.

Because uncertain future is more desirable than the certain loss of concession.

To prevent the bias, people can establish monitoring systems that checks the perceptions

before making judgments or decisions, and search supporting data and challenge our

decisions. People can also involve an outside to overlook to our position and checks whether

we are still on the rational track or not.

- Why does The Mythical Fixed-Pie overlook integrative approach in negotiation?Mythical Fixed-Pie happens when parties in negotiation dont find these beneficial trade -offs

because each assumes its interests directly conflict with those of the other party. The Whats

good for you must be bad for us became common and unfortunate perspective that most

people have. This makes people to likely think that by negotiating, they will achieve win-lose

solution.

- What factors do influence The Mythical Fixed-Pie? How to prevent the bias?The mythical fixed-pie is influenced by the assumptions the parties in negotiation used on

them. Different assumptions used by each party may cause biases in the negotiation. To

prevent the bias, the parties need to implement integrated negotiation approach that makes

both parties have identical preferences on the agreements issue (invent options for mutual

gain of joint venture).

- What are the dangers of the anchoring and adjustment? How do we minimize it?Anchoring and adjustment are dangerous im achieving agreement in a negotiation, because

the information used in negotiation might be irrelevant and non -strategic, which will inhibit

individuals from negotiating rationally.

To minimize it, we must not let an initial anchor minimize the amount of information and the

depth of thinking used to evaluate the situations, and dont give too much weight to an


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MBA X40 / 29108370

opponents initial offer too early in the negotiation. We must also not leg itimize an

unacceptable initial offer by making a counteroffer.

We can also use anchoring to our advantage, by deciding what initial offer will attract the

attention of the other party.

- How to overcome the Framing Bias?To overcome the framing bias, we must know our and our opponents behavior towards risk,

whether risk averse, risk neutral, or risk seeking, the referent point used to evaluate an

alternative, and also the value of the endowment effect. The presence of mediator may cause

different prespectives between the negotiating parties. So, it is better for both parties to

directly meet and create same frame.

- Why does the Winner Curse happen? How to overcome it?Winners curse happens when a party had such limited information, like what happens when

the seller that knows more about the local market and did not share it to you so he can gain

advantage for himself. To overcome Winners Curse, you need to develop or borrow the

expertise to balance the quality of information. You can ask yourself,wi ll i be happy if the

offer is accepted quickly? if not, you better reconsider your offer.

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Week 5 Assignment - Astri Irdiana x40