{"id":4751,"date":"2019-02-23T17:17:36","date_gmt":"2019-02-23T16:17:36","guid":{"rendered":"https:\/\/brightfocusconsult.com\/?p=4751"},"modified":"2019-08-17T12:39:43","modified_gmt":"2019-08-17T10:39:43","slug":"blog-business-negotiation-biases-remove-for-results","status":"publish","type":"post","link":"https:\/\/brightfocusconsult.com\/en\/blog-business-negotiation-biases-remove-for-results\/","title":{"rendered":"Business Negotiation Biases: Remove for Results"},"content":{"rendered":"

Biases in Business Negotiations.<\/span><\/span><\/strong><\/p>\n

Despite the fact that everyone thinks that they work rationally in business negotiations, the opposite is often the case. <\/span>Even if there is a lot at stake financially, nothing human is strange to us. <\/span>We cannot discern facts from subjective reality and burst from the prejudices that prevent a possibly favorable agreement. <\/span>In the attached infographic I have listed the most common <\/span><\/span>‘Negotiation Biases’<\/span><\/span><\/strong> \u00a0that can be in the way of solid business negotiations in order to achieve results.<\/span><\/span><\/p>\n

\"\"
Contract Negotiations, Business Negotiations, Negotiations Skills Training, Negotiations Coaching, Negotiations Training, Mergers And Acquisitions, Investments And Risk Management, Negotiation Strategies, Business Negotiations Decision-Making, Risk Management And Negotiations, Negotiation Strategies Coaching, Business Negotiations Framing, Business Negotiations Preparation , Skilled Negotiator, Corporate Acquisitions, Investment Management and Risk Management, Negotiation Skills, Contract Negotiation, Strategic Negotiator, Price Negotiator, Business Negotiator, Win Win Negotiator, Power Negotiator, Deal Negotiator, Effective Negotiator, Expert Negotiator, Professional Negotiator, Negotiation Services, Negotiation Biases<\/span><\/span><\/figcaption><\/figure>\n

What do you remember from your negotiations?<\/span><\/span><\/strong><\/p>\n

\u00a0<\/strong>After a negotiation your memories could be off from the presented facts<\/span><\/span><\/em><\/p>\n

    \n
  • \u00a0<\/strong>Suggestibility<\/span><\/span><\/strong> in negotiations means being inclined to accept and act on suggestions or others, even where the information is false, but plausible<\/span><\/span><\/li>\n
  • False memory<\/span><\/span><\/strong> is a psychological phenomenon, where in the negotiations you recall things that did not happen, or differently from the way it happened<\/span><\/span><\/li>\n
  • Misattribution of memory<\/span><\/span><\/strong> in negotiations refers to the ability to remember information correctly, but being wrong about the source<\/span><\/span><\/li>\n<\/ul>\n

    In negotiations you discard details to form generalities<\/span><\/span><\/em><\/p>\n

      \n
    • Negativity bias<\/span><\/span><\/strong> in negotiations is the notion that negative elements have a greater effect on your psychological state, than neutral or positive things<\/span><\/span><\/li>\n
    • Prejudice<\/span><\/span><\/strong> in negotiations is your preconceived feeling towards a person based solely on that person’s group membership, being social class, age, culture, etc.<\/span><\/span><\/li>\n
    • The generalization<\/span><\/span><\/strong> of the opposing person at the negotiating table, because you assume the stereotype is true for each individual person in the group<\/span><\/span><\/li>\n<\/ul>\n

      You reduce negotiation events to key elements<\/span><\/span><\/em><\/p>\n

        \n
      • Primacy and recency effect<\/span><\/span><\/strong> in negotiations refers to the phenomenon that the first and last terms of a list are best remembered<\/span><\/span><\/li>\n
      • List and length effect<\/span><\/span><\/strong> in negotiations refers to the finding that recognition for a short list is superior to that for a long list<\/span><\/span><\/li>\n
      • Peak \u2013 end rule<\/span><\/span><\/strong> in negotiations is a phenomenon in which you judge the experience based on how you felt at its climax and the end, rather than the whole experience<\/span><\/span><\/li>\n<\/ul>\n

        You store negotiation memories differently based on how you experienced them<\/span><\/span><\/em><\/p>\n

          \n
        • Misinformation effect<\/span><\/span><\/strong> in negotiations happens when your memories become less accurate, because of post-event information<\/span><\/span><\/li>\n
        • The next-in-line effect<\/span><\/span><\/strong> in negotiations is the phenomenon where you are unable to recall information concerning events immediately preceding your turn to perform<\/span><\/span><\/li>\n
        • Absent-mindedness<\/span><\/span><\/strong> in negotiations means that you are so lost in thought that you do not realize what you are doing and what is happening around you<\/span><\/span><\/li>\n<\/ul>\n

           <\/p>\n

          Information overload<\/span><\/span><\/strong><\/p>\n

          In negotiations you primarily notice things already memorized or repeated often<\/span><\/span><\/em><\/p>\n

            \n
          • Availability heuristic<\/span><\/span><\/strong> in negotiations promotions that if something can be recalled, it must be important, at least more important than alternative solutions<\/span><\/span><\/li>\n
          • Illusory truth effect<\/span><\/span><\/strong> (also known as the validity effect) in business negotiations is the tendency to believe information to be correct after repeated exposure<\/span><\/span><\/li>\n
          • Empathy gap<\/span><\/span><\/strong> in business negotiations is the tendency to underestimate the influence or strength of positive and negative feelings, in either oneself or others<\/span><\/span><\/li>\n
          • Omission bias<\/span><\/span><\/strong> in negotiations is the tendency to judge harmful actions as worse, than equally harmful omissions, because actions are more obvious than inactions<\/span><\/span><\/li>\n<\/ul>\n

            Extraordinary things in negotiations stick out more than common things<\/span><\/span><\/em><\/p>\n

              \n
            • Picture superiority effect<\/span><\/span><\/strong> in business negotiations refers to the phenomenon in which images are more likely to be remembered than words<\/span><\/span><\/li>\n
            • Negativity bias<\/span><\/span><\/strong> in negotiations is a psychological phenomenon, by which you have a greater recall of unpleasant memories compared to positive memories<\/span><\/span><\/li>\n<\/ul>\n

              You notice when something has changed during the negotiation process<\/span><\/span><\/em><\/p>\n

                \n
              • Anchoring<\/span><\/span><\/strong> in negotiations is the tendency to rely heavily on the “anchor”, usually the first piece of information acquired on that subject, when making decisions<\/span><\/span><\/li>\n
              • Conservatism<\/span><\/span><\/strong> or belief revision in negotiations is the tendency to revise your belief insufficiently, when presented with new clear evidence<\/span><\/span><\/li>\n
              • Framing effect<\/span><\/span><\/strong> in negotiations means that parties draw different conclusions from the same information, depending on how that information is presented<\/span><\/span><\/li>\n
              • Money illusion<\/span><\/span><\/strong> in business negotiations is the tendency to concentrate on the nominal value of money, rather than its real value in terms of purchasing power<\/span><\/span><\/li>\n<\/ul>\n

                You are drawn to negotiation details confirming your existing beliefs<\/span><\/span><\/em><\/p>\n

                  \n
                • Confirmation bias<\/span><\/span><\/strong> in business negotiations is the tendency to search for, interpret, focus on and remember information that confirm your preconceptions<\/span><\/span><\/li>\n
                • Post-purchase rationalization<\/span><\/span><\/strong> in business negotiations is the tendency to persuade yourself through a rational argument that a purchase was good value<\/span><\/span><\/li>\n
                • Expectation bias<\/span><\/span><\/strong> is to believe and act on data that agree with your expectations for the negotiation outcome and to discard data that conflicts with those expectations<\/span><\/span><\/li>\n<\/ul>\n

                  In negotiations you notice flaws in others more easily than flaws in yourself<\/span><\/span><\/em><\/p>\n

                    \n
                  • Bias blind spot<\/span><\/span><\/strong> in business negotiations is the tendency to see yourself as less biased, than other people<\/span><\/span><\/li>\n
                  • Naive cynicism<\/span><\/span><\/strong> in business negotiations is the expectation of more egocentric bias in others than in oneself<\/span><\/span><\/li>\n
                  • Naive realism<\/span><\/span><\/strong> belief in negotiations means that you see reality as it really is and the facts are clear to all parties. <\/span>Those who don’t are uninformed, irrational, or biased<\/span><\/span><\/li>\n<\/ul>\n

                     <\/p>\n

                    Not enough value<\/span><\/span><\/strong><\/p>\n

                    In sparse negotiation data you will find stories and patterns<\/span><\/span><\/em><\/p>\n

                      \n
                    • Neglect of probability<\/span><\/span><\/strong> in business negotiations is the tendency to completely disregard probability, when making a decision under uncertainty<\/span><\/span><\/li>\n
                    • Illusion of validity<\/span><\/span><\/strong> that our judgments are accurate in business negotiations, especially when available information is consistent and correlated<\/span><\/span><\/li>\n
                    • Gambler’s fallacy<\/span><\/span><\/strong> in negotiations is the tendency to think that future probabilities are altered by past events, when in reality they are unchanged<\/span><\/span><\/li>\n
                    • Hot-hand fallacy<\/span><\/span><\/strong> in negotiations is the belief that if you have experienced success with a random event, you have a greater chance of success in additional attempts<\/span><\/span><\/li>\n<\/ul>\n

                      Filling in negotiation elements from stereotypes and generalities<\/span><\/span><\/em><\/p>\n

                        \n
                      • Groupthink<\/span><\/span><\/strong> in negotiations occurs within a group of people in which the desire for harmony and conformity results in irrational or dysfunctional decision-making<\/span><\/span><\/li>\n
                      • Just-world hypothesis<\/span><\/span><\/strong> in negotiations is the tendency for you to believe because the world is fundamentally just<\/span><\/span><\/li>\n
                      • Authority bias<\/span><\/span><\/strong> in business negotiations is the tendency to attribute greater accuracy to the opinion of an authority figure and be more influenced by that opinion<\/span><\/span><\/li>\n
                      • Bandwagon effect<\/span><\/span><\/strong> in negotiations is the herd of mentality to do or believe things, because many other people do or believe the same<\/span><\/span><\/li>\n<\/ul>\n

                        During negotiations you imagine things and people you are familiar with as better<\/span><\/span><\/em><\/p>\n

                          \n
                        • Not invented here<\/span><\/span><\/strong> in negotiations is the aversion to contact with or use of products, research, standards, or knowledge developed outside of a group<\/span><\/span><\/li>\n
                        • Reactive devaluation<\/span><\/span><\/strong> in business negotiations is the devaluing of proposals, only because they are originated by your adversary<\/span><\/span><\/li>\n
                        • You simplify probabilities and numbers to make negotiations easier to understand<\/span><\/span><\/em><\/li>\n
                        • Normalcy bias<\/span><\/span><\/strong> in negotiations is the refusal to plan for, or react to, a disaster that has never happened before in business deals<\/span><\/span><\/li>\n
                        • Survival bias<\/span><\/span><\/strong> in negotiations is concentrating on the people or things that survived and overlooking those who didn’t, because of their lack of visibility<\/span><\/span><\/li>\n
                        • Zero sum bias<\/span><\/span><\/strong> in negotiations is a bias, a situation is incorrectly perceived to be like a zero sum game (ie, one person gains at the expense of another)<\/span><\/span><\/li>\n<\/ul>\n

                          You project your negotiation mindset and assumptions on the past and the future<\/span><\/span><\/em><\/p>\n

                            \n
                          • Consistency bias<\/span><\/span><\/strong> in negotiations is incorrectly remembering your past attitudes and behavior as resembling present attitudes and behavior<\/span><\/span><\/li>\n
                          • Pro-innovation bias<\/span><\/span><\/strong> gives you an excessive optimism towards an invention or innovation, while often failing to identify its limitations and weaknesses<\/span><\/span><\/li>\n
                          • Outcome bias<\/span><\/span><\/strong> in business negotiations is the tendency to judge a decision by its eventual outcome instead of based on the quality of the decision at the time it was made<\/span><\/span><\/li>\n
                          • Hindsight bias<\/span><\/span><\/strong> in business negotiations is the inclination to see past events as being more predictable than they actually were<\/span><\/span><\/li>\n<\/ul>\n

                            In business negotiations you think you know what other people are thinking<\/span><\/span><\/em><\/p>\n

                              \n
                            • Illusion of transparency<\/span><\/span><\/strong> in negotiations is a tendency for you to overestimate how well you understand others’ personal and mental states<\/span><\/span><\/li>\n
                            • Illusion or asymmetric insight<\/span><\/span><\/strong> into negotiations is a cognitive bias, think you think your knowledge or others surpasses other people’s knowledge of you<\/span><\/span><\/li>\n<\/ul>\n

                              \u00a0<\/strong><\/p>\n

                              Need for action in negotiations<\/span><\/span><\/strong><\/p>\n

                              To act in negotiations, you must be confident and know what is important<\/span><\/span><\/em><\/p>\n

                                \n
                              • Effort justification<\/span><\/span><\/strong> is when you value the efforts to achieve a negotiation outcome greater than the objective value of the outcome<\/span><\/span><\/li>\n
                              • Illusory superiority<\/span><\/span><\/strong> in negotiations is overestimating your desirable qualities, and underestimating undesirable qualities, relative to other people<\/span><\/span><\/li>\n
                              • Illusion of control<\/span><\/span><\/strong> in negotiations is the tendency to overestimate your degree or influence over other external events<\/span><\/span><\/li>\n
                              • Optimism <\/span><\/span><\/strong> bias<\/span><\/span><\/strong> in business and contract negotiations is the tendency to be over-optimistic, overestimating favorable deals and results<\/span><\/span><\/li>\n
                              • Overconfidence effect<\/span><\/span><\/strong> in any negotiation is the excessive confidence in your own answers to (complex) questions<\/span><\/span><\/li>\n<\/ul>\n

                                To get things done, you want to complete things you have invested time and energy in<\/span><\/span><\/em><\/p>\n

                                  \n
                                • Endowment effect<\/span><\/span><\/strong> in negotiations is the tendency for you to demand much more to give up an object than you would be willing to pay to acquire it<\/span><\/span><\/li>\n
                                • Disposition effect<\/span><\/span><\/strong> is the tendency to sell an asset that has accumulated in value and resist selling an asset that has declined in value<\/span><\/span><\/li>\n
                                • Zero-risk bias<\/span><\/span><\/strong> is the preference for reducing a small risk to zero over a greater reduction in a larger risk<\/span><\/span><\/li>\n
                                • Loss aversion<\/span><\/span><\/strong> in negotiations refers to your tendency to prefer avoiding losses to acquiring equivalent gains: it is better to not lose $ 5, than to find $ 5<\/span><\/span><\/li>\n
                                • Sunk cost fallacy<\/span><\/span><\/strong> is that you justify increased investment in a decision, based on your cumulative prior investment, despite evidence the decision was wrong<\/span><\/span><\/li>\n<\/ul>\n

                                   <\/p>\n

                                  What do you remember from your negotiations?<\/span><\/span><\/strong><\/p>\n

                                  Motivated to preserve your status in a group, you avoid mistakes and irreversible decisions<\/span><\/span><\/em><\/p>\n

                                    \n
                                  • Status quo bias<\/span><\/span><\/strong> in business negotiations is the tendency you like things to stay relatively the same, so that you do not take action<\/span><\/span><\/li>\n
                                  • Social comparison bias<\/span><\/span><\/strong> in negotiations is when making decisions, you favor potential candidates who don’t compete with your own particular strengths<\/span><\/span><\/li>\n
                                  • The effect<\/span><\/span><\/strong> is that you want to have a change in preference between two options, when presented with a third option that is asymmetrically dominated<\/span><\/span><\/li>\n<\/ul>\n

                                    You favor simple options and complete information about complex negotiation options<\/span><\/span><\/em><\/p>\n

                                      \n
                                    • Less-is-better effect<\/span><\/span><\/strong> in negotiations is the tendency to prefer a narrower set to a larger set judged separately, but not jointly<\/span><\/span><\/li>\n
                                    • Law of triviality<\/span><\/span><\/strong> in business and contract negotiations is the tendency to give disproportionate weight to trivial issues<\/span><\/span><\/li>\n
                                    • Belief bias<\/span><\/span><\/strong> in negotiations is an effect where your evaluation of the logical strength of an argument is biased by the believability of the conclusion<\/span><\/span><\/li>\n
                                    • Information bias<\/span><\/span><\/strong> in business negotiations is a cognitive bias to seek additional information, when it does not affect action<\/span><\/span><\/li>\n
                                    • Ambiguity effect<\/span><\/span><\/strong> in negotiations is that you have the tendency to avoid options for which the probability of a favorable outcome is unknown<\/span><\/span><\/li>\n<\/ul>\n

                                      Negotiation strategies session<\/span><\/span><\/strong><\/h4>\n

                                      If you want to discuss your business negotiations with a strategic skilled negotiator, please book an appointment. <\/span>Together we personalize negotiation strategies that will work for you. <\/span>The above quality decision elements illustrate what can be achieved, if you prepare for your negotiations.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

                                      Biases in Business Negotiations. Despite the fact that everyone thinks that they work rationally in business negotiations, the opposite is often the case. Even if there is a lot at stake financially, nothing human is strange to us. We cannot discern facts from subjective reality and burst from the prejudices that prevent a possibly favorable […]<\/p>\n","protected":false},"author":2,"featured_media":9318,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[527],"tags":[720,708,713,716,717,562,558,707,718,566,567,568,719,712,711,592,557,574,715,710,709,573,565,561,569,714,556,560,564],"class_list":{"0":"post-4751","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-infographics-business-negotiations","8":"tag-business-negotiation-biases","9":"tag-business-negotiations","10":"tag-business-negotiations-decision-making","11":"tag-business-negotiations-framing","12":"tag-business-negotiations-preparation","13":"tag-business-negotiator-en","14":"tag-contract-negotiation-en","15":"tag-contract-negotiations","16":"tag-corporate-acquisitions","17":"tag-deal-negotiator-en","18":"tag-effective-negotiator-en","19":"tag-expert-negotiator-en","20":"tag-investment-management-and-risk-management","21":"tag-investments-and-risk-management","22":"tag-mergers-and-acquisitions","23":"tag-negotiation-services-en","24":"tag-negotiation-skills-en","25":"tag-negotiation-strategies-en","26":"tag-negotiation-strategies-coaching","27":"tag-negotiations-coaching","28":"tag-negotiations-skills-training","29":"tag-negotiations-training-en","30":"tag-power-negotiator-en","31":"tag-price-negotiator-en","32":"tag-professional-negotiator-en","33":"tag-risk-management-and-negotiations","34":"tag-skilled-negotiator-en","35":"tag-strategic-negotiator-en","36":"tag-win-win-negotiator-en","37":"entry"},"acf":[],"yoast_head":"\nBright Focus Blog - Negotiation Biases - Remove for Results<\/title>\n<meta name=\"description\" content=\"Remove Negotiation Biases. 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