A

Essentials of
Negotiation
Fifth edition

Roy J. Lewicki
The Ohio State University
David M. Saunders
Queen's University
Bruce Barry
Vanderbilt University

McGraw-Hill
Irwin

about the authors iv

preface v

Tactical Tasks

Assessing the Other Party's Target, Resistance Point,

and Costs of Terminating Negotiations 35

Chapter 1
The Nature of Negotiation

Manage the Other Party's Impressions 37

Modify the Other Party's Perceptions 39

A Few Words about Our Style and Approach

Joe and Sue Carter

Characteristics of a Negotiation Situation

Interdependence

Positions Taken during Negotiation

41

Opening Stance 42
Initial Concessions 42

Alternatives Shape Interdependence 10

Role of Concessions 43

12

Mutual Adjustment and Concession Making -13

Two Dilemmas in Mutual Adjustment
Value Claiming and Value Creation
Conflict

Manipulate the Actual Costs of Delay

or Termination 39
Opening Offers 41

Types of Interdependence Affect Outcomes 10

Mutual Adjustment

35

J4

15

Pattern of Concession Making 44

Final Offers 46
Commitment

46

Tactical Considerations in Using Commitments' 47

18

Definitions 18

Establishing a Commitment 47

Levels of Conflict 18

Preventing the Other Party from Committing

Functions and Dysfunctions of Conflict 19

Factors That Make Conflict Easy or Difficult
to Manage 20
Effective Conflict Management

22

Prematurely 49
Finding Ways to Abandon a Committed Position
Closing the Deal

51

Hardball Tactics

52

49

Dealing with Typical Hardball Tactics 52

Chapter 2
Strategy and Tactics of Distributive
Bargaining 27
The Distributive Bargaining Situation 29
The Role of Alternatives
to a Negotiated Agreement
Settlement Point

3J

32

Bargaining Mix 33
Fundamental Strategies 33
Discovering the Other Party's Resistance Point 34
Influencing the Other Party's Resistance Point 34

Typical Hardball Tactics 54

Chapter Summary

60

Chapter 3
Strategy and Tactics of Integrative
Negotiation 62
Introduction

62

What Makes Integrative Negotiation Different? 62

An Overview of the Integrative
Negotiation Process 63
Creating a Free Flow of Information 64

Contents

Attempting to Understand the Other Negotiator's

Real Needs and Objectives 64

The Dual Concerns Model as a Vehicle for Describing

Negotiation Strategies 92

Emphasizing the Commonalities between the Parties

and Minimizing the Differences 65

Understanding the Flow of Negotiations: Stages

and Phases Consistancy 96

Searching for Solutions That Meet the Needs

and Objectives of Both Sides 65

Getting Ready to Implement the Strategy:

The Planning Process 97

Key Steps in the Integrative Negotiation Process

Identify and Define the Problem

66

67

Understand the Problem FullyIdentify Interests

and Needs 69
Generate Alternative Solutions
Section Summary

3. Defining Interests

72

4. Knowing Limits

78
79

Faith in One's Problem-Solving Ability

8. Analyzing the Other Party

83

The Motivation and Commitment to

Work Together 84

Chapter Summary

85

An Understanding of the Dynamics of Integrative

Negotiation 86

Perception

87

113

Perceptual Distortion
Framing

117

Another Approach to Frames: Interests, Rights,

89

90

Indirect Effects of Goals on Choice of Strategy

91

118

The Frame of an Issue Changes as the Negotiation

Evolves 120
122

Cognitive Biases in Negotiation

91

Unilateral versus Bilateral Approaches to Strategy

and Power

Section Summary

StrategyThe Overall Plan to Achieve

One's Goals Consistancy 91
Strategy versus Tactics

116

How Frames Work in Negotiation

GoalsThe Focus That Drives

Direct Effects of Goals on Choice of Strategy

113

115

Types of Frames

89

112

113

Perception Defined

87

a Negotiation Strategy

111

Chapter 5
Perception, Cognition, and Emotion

86

Chapter 4
Negotiation: Strategy and Planning

108

10. What Protocol Needs to Be Followed

in This Negotiation? 109

83

Clear and Accurate Communication

105

9. Presenting Issues to the Other Party

A Belief in the Validity of One's Own Position

and the Other's Perspective

101

7. Assessing Constituents and the Social Context

of the Negotiation 103

Some Common Objective or Goal 82

Chapter Summary

100

6. Setting Targets and Asking Prices 101

Factors T|iat Facilitate Successful Integrative

Negotiation 82

Section Summary

100

5. Knowing Alternatives

Evaluate and Select Alternatives

Trust

1. Defining the Issues 97

2. Assembling the Issues and Defining
the Bargaining Mix 99

122

1. Irrational Escalation of Commitment

92

2. Mythical Fixed-Pie Beliefs

123

123

Contents

3. Anchoring and Adjustment

4. Issue Framing and Risk

124

5. Availability of Information
6. The Winner's Curse
7. Overconfidence

Special Communication Considerations

at the Close of Negotiations 149

124

Avoiding Fatal Mistakes

125

Achieving Closure

125

Chapter Summary

125

8. The Law of Small Numbers

9. Self-Serving Biases

126

10. Endowment Effect

127
127

Why Is Power Important to Negotiators?

Managing Misperceptions and Cognitive Biases

in Negotiation 128

Chapter Summary

129

A Definition of Power

156

157

Power Based on Position in an Organization

136

Communication

What Is Communicated during Negotiation?

J. Offers, Counteroffers, and Motives
2. Information about Alternatives
3. Information about Outcomes
4. Social Accounts

136

137

138

139

Is More Information Always Better?

I45

Role Reversal

148

145

139

167

168

170

A Sampling of Ethical Quandaries

170

172

Applying Ethical Reasoning to Negotiation

175

Ethics versus Prudence versus Practicality

139

versus Legality
J 41

Selection of a Communication Channel

The Use of Questions

Chapter Summary

Ethics Defined

139

How People Communicate in Negotiation

144

166

What Do We Mean by "Ethics," and Why Do They

Matter in Negotiation? 172

Does It Matter What Is Said Early

How to Improve Communication in

Contextual Sources of Power

Dealing with Others Who Have More Power

138

Are Negotiators Consistent or Adaptive?

Use of Nonverbal Communication

162

Chapter 8
Ethics in Negotiation

137

138

Characteristics of Language

Power Based on Relationships

158

137

5. Communication about Process

in the Negotiation?

154

Power Based on Personality and Individual

Chapter 6

Listening

152

Informational Sources of Power

133

151

Sources of PowerHow People Acquire Power

Differences

Negotiation

149

Chapter 7
Finding and Using Negotiation
Power 151

128

Mood, Emotion, and Negotiation

149

126

11. Ignoring Others' Cognitions

12. Reactive Devaluation

149

142

175

What Questions of Ethical Conduct Arise

in Negotiation? 176
Ethically Ambiguous Tactics: It's (Mostly)
. AH about the Truth 176
Identifying Ethically Ambiguous Tactics
and Attitudes toward Their Use 179
Deception by Omission versus Commission

180

xiii

Contents
The Decision to Use Ethically Ambiguous Tactics:
A Model 181
Why Use Deceptive Tactics? Motives
and Consequences 181
The Power Motive

The Agreement Stage 227

Chapter Summary

228

181

Other Motives to Behave Unethically 183

The Consequences of Unethical Conduct 183
Explanations and Justifications 185
How Can Negotiators Deal with the Other Party's
Use of Deception ? 187
Chapter Summary

The Formal Negotiation StageManaging the Group

Process and Outcome 221

191

Chapter 11

International and Cross-Cultural

Negotiation 230
International Negotiation: Art and Science

231

What Makes International Negotiation

Different? 231
Environmental Context 232

Chapter 9

Immediate Context

Relationship^ in Negotiation

193

The Adequacy of Established Approaches

to Research for Understanding Negotiation
within Relationships 193
Negotiations in Communal Relationships 197
Key Elements in Managing Negotiations
within Relationships 199

234

Section Summary 236

Conceptualizing Culture and Negotiation
Culture as Learned Behavior 236
Culture as Shared Values 237
Section Summary 240
Culture as Dialectic 240
Culture in Context 240

Reputation 199

The Influence of Culture on Negotiation: Managerial

Perspectives 241

Trust 201
Justice 204

Definition of Negotiation 241

Relationships among Reputation, Trust,

and Justice 207

Negotiation Opportunity 241

Repairing a Relationship 207

Protocol 242

Chapter Summary

236

208

Selection of Negotiators 242

Communication

242

Time Sensitivity 242

Chapter 10

Risk Propensity 243

Multiple Parties and Teams 210

Groups versus Individuals 243

The Nature of Multiparty Negotiations

Nature of Agreements 244

210

'Differences between Two-Party Negotiations

' -and Multiparty Negotiations 211
Summary 215

The Prenegotiation Stage 218

Culturally Responsive Negotiation Strategies

Low Familiarity 246

What Is an Effective Group? 215

Managing Multiparty Negotiations

Emotionalism 244

217

Moderate Familiarity 247

High Familiarity 247
Chapter Summary

248

244

Contents

Chapter 12
Best Practices in Negotiations

Sticking with the Strategy versus Opportunistic

Pursuit of New Options 255

251

Honest and Open versus Closed and Opaque

1. Be Prepared

251

Trust versus Distrust

2. Diagnose the Fundamental Structure

of the Negotiation 252
3. Identify and Work the BATNA
4. Be Willing to Walk Away

7. Actively Manage Coalitions

256
257

8. Savor and Protect Your Reputation

253

5. Master the Key Paradoxes of Negotiation

Claiming Value versus Creating Value

256

6. Remember the Intangibles

253
254

254

Sticking by Your Principles versus Being Resilient

to the Flow 254

255

258

9. Remember That Rationality and Fairness

Are Relative 259
10. Continue to Learn from Your Experience
Bibliography
Index 280

261

259