Negotiation
Tactic
Separate Their Gains Into Individual Components
Separate gains when possible so that they feel more impactful.
Overview
Which option is better:
- You find a $20 bill
- You find a $10 bill. Then another $10 bill
Both outcomes are the same, yet the second outcome feels better (Kahneman & Tversky, 1979).
Follow that guideline in negotiations. Consider this benefit:
- The project will be completed under budget by May 3
You could separate that benefit into smaller pieces:
- The project will meet all quality requirements
- The project will be completed under budget
- The project will be completed by May 3
Voila. You turned one benefit into three. Your counterpart will perceive more value in the deal (Malhotra & Bazerman, 2008).
- Malhotra, D., & Bazerman, M. H. (2008). Psychological influence in negotiation: An introduction long overdue. Journal of Management, 34(3), 509-531.
- Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263-292.