Publications
Publications
- August 1996 (Revised December 1996)
- HBS Case Collection
Two Psychological Traps in Negotiation
Abstract
Two psychological traps, anchoring and framing, and their role in negotiation are described. The anchoring section describes how first or opening offers can be used effectively in negotiation. Examines how opening offers serve as an anchor, changing one side's perception of the other side's bottom line and hence the set of possible outcomes. The framing section describes how framing--alternative description of an object, event, or situation--can be used effectively in negotiation. Uses a real-estate dialogue to illustrate three common varieties of framing: losses versus gains, short and long horizons, and aggregation and segregation.
Keywords
Citation
Wu, George. "Two Psychological Traps in Negotiation." Harvard Business School Background Note 897-036, August 1996. (Revised December 1996.)