In Negotiating Rationally, Max Bazerman and Margaret Neale explain how to avoid the pitfalls of irrationality and gain the upper hand in negotiations.

For example, managers tend to be overconfident, to recklessly escalate previous commitments, and fail to consider the tactics of the other party. Drawing on their research, the authors show how we are prisoners of our own assumptions. They identify strategies to avoid these pitfalls in negotiating by concentrating on opponents' behavior and developing the ability to recognize individual limitations and biases. They explain how to think rationally about the choice of reaching an agreement versus reaching an impasse. A must read for business professionals.

Max H. Bazerman is the J. J. Gerber Distinguished Professor of Dispute Resolution and Organizations and Margaret A. Neale is the H. L. and Helen Kellogg Distinguished Professor of Dispute Resolution and Organizations at the J. L. Kellogg Graduate School of Management at Northwestern University. They are coauthors of Cognition and Rationality in Negotiation.

Contents

Preface

Acknowledgments

1 Introduction to Rational Thinking in Negotiation

PART ONE

Common Mistakes in Negotiation

2 The Irrational Escalation of Commitment

3 The Mythical Fixed-Pie

4 Anchoring and Adjustment

5 Framing Negotiations

6 Availability of Information

7 The Winner's Curse

8 Overconfidence and Negotiator Behavior

PART TWO

A Rational Framework for Negotiation

9 Thinking Rationally about Negotiation

10 Negotiations in a Joint Venture: A Case Example

11 Rational Strategies for Creating Integrative Agreements

PART THREE

Simplifying Complex Negotiations

12 Are You an Expert?

13 Fairness, Emotion, and Rationality in Negotiation

14 Negotiating in Groups and Organizations

15 Negotiating Through Third Parties

16 Competitive Bidding: The Winner's Curse Revisited

17 Negotiating Through Action

18 Conclusion: Negotiating Rationally in an Irrational World

Notes

Index