- Three bargaining types
- Analysist: Systematic, methodological, diligent, do not like surprises, separates negotiation and relationship
- Accommendator: Friendly, sociable, wants to have a good relationship with the counterparty
- Assertive: Very focused on their own goal, wants to be time-efficient, only gets to your concerns when they feel heard
- Black Swan rule: Don't treat others the way you want to be treated. Treat them the way they want to be treated
- Zone of Possible Agreements (ZOPA): Set of deals that both parties would accept. But modeling this often means having to assume that parties are more rational than they really tend to be
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"Everybody has a plan until they get punched in the mouth" — Mike Tyson
- Bargaining for a price: By default people often meet in the middle
- Ackerman model:
- Set your target price and offer 65% of that
- Go up to 85%, 95%, 100% while nicely rejecting their offer
- When giving the final number use a precise, non-round number. You can also throw in a non-monetary item (that they probably do not want), just to show that you cannot give more
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We just like $1.99 more than $2.00 even if we know it’s a trick
- If someone does not reject your offer but wants more time, that usually means you have the edge