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CHAPTER5Perception Cognition andEmotion TheTitles PerceptionFramingCognitiveBiasesinNegotiationManagingMisperceptionsandCognitiveBiasesinNegotiationMood Emotion andNegotiationChapterSummary 1 Perception PerceptionDefinedPerceptionistheprocessbywhichindividualsconnecttotheirenvironment Theprocessofascribingmeaningtomessageandeventsisstronglyinfluencedbytheperceiver scurrentstateofmind role andcomprehensionofearliercommunications PerceptionDistortionInagivennegotiation theperceiver sownneeds desires motivation andpersonalexperiencesmaycreateapredispositionabouttheotherparty Thiscausesforconcernwhenitleadstobiasesanderrorsinperceptionandsubsequentcommunications ThePerceptualProcess Figure5 1Perceptionisa sense making process peopleinterprettheirenvironmentsothattheycanrespondappropriate Perception Stimulus Recognition Translation Behavior Attention PerceptionDistortion 1 Stereotyping Itoccurswhenoneindividualassignsattributionstoanothersolelyonthebasisoftheother smembershipinaparticularsocialordemographiccategory HaloEffects Itoccurswhenpeoplegeneralizeaboutavarietyofattributesbasedontheknowledgeofoneattributeofanindividual PerceptionDistortion 2 SelectivePerception Itoccurswhentheperceiversinglesoutcertaininformationthatsupportsorreinforcesapriorbeliefandfiltersoutinformationthatdoesnotconfirmthatbelief Projection Itoccurswhenpeopleassigntoothersthecharacteristicsorfeelingsthattheypossessthemselves Itusuallyarisesoutofaneedtoprotecttoone sownself concept toseeoneselfasconsistentandgood 2 Framing Aframeisthesubjectivemechanismthroughwhichpeopleevaluateandmakesenseoutofsituation leadingthemtopursueoravoidsubsequentactions Thepopularityofframinghascomewiththerecognitionthatoftentwoormorepeoplewhoareinvolvedinthesamesituationorinacomplexproblemseeitordefineitindifferentways Framesarecriticalinnegotiationforseveralreasons Understandingframinghelpsnegotiatorsevaluatetheprocess andbettercontrollingit 2 1TypesofFrames 1 Substantive whattheconflictabout 2 Outcome aparty spredispositiontoachievingaspecificresultoroutcome 3 Aspiration apredispositiontowardsatisfyingabroadersetofinterestorneeds 4 Process howthepartieswillgoaboutresolvingtheirdispute 5 Identify howthepartiesdefine whotheyare 6 Characterization howthepartiesdefinetheotherparties 7 Loss gain howthepartiesdefinetheriskorreward 2 2HowFramesWorkinNegotiation Negotiatorscanusemorethanoneframe Mismatchesinframesbetweenpartiesaresourcesofconflict Particulartypesofframesmayleadtoparticulartypesofagreements Specificframesmaybelikelytobeusedwithcertaintypesofissues Partiesarelikelytoassumeaparticularframebecauseofvariousfactors 2 3AnotherApproachtoFrames Interests Right andPower Partieshaveachoiceabouthowtheyapproachanegotiationintermsofinterests rights andpower thesamenegotiationcanbeframedindifferentwaysandwilllikelyleadtodifferentconsequences Theexampleofastudentwhohasadisputewithalocalcarrepairshopshowsthatdifferentframesareverylikelytoleaddifferentdiscussions 2 4TheFrameofanIssueChangesasNegotiationEvolves Atleastfourfactorscanaffecthowtheconversationisshaped 1 Negotiatorstendtoargueforstockissues orconcernsthatareraisedeverytimethepartiesnegotiate 2 Eachpartyattemptstomakethebestpossiblecaseforhisorherpreferredpositionorperceptive 3 Framesmaydefinemajorshiftsandtransitionsinacomplexoverallnegotiation 4 Multipleagendaitemsoperatetoshapeissuedevelopment 2 5Summary Wecanofferthefollowingprescriptiveadvicesaboutproblemframingforthenegotiator Frameshapewhatthepartiesdefineasthekeyissuesandhowtheytalkaboutthem Bothpartieshaveframes Framesarecontrollable atleasttosomedegree Conversationschangeandtransformframesinwaysnegotiatorsmaynotbeabletopredictbutmaybeabletocontrol Certainframesaremorelikelythanotherstoleadtocertaintypesofprocessesandoutcomes 3 CognitiveBiasesinNegotiation 1 IrrationalEscalationofCommitment Itisantendencyforanindividualtomakedecisionsthatstickwithafailingcourseofaction EscalationofCommitmentisdueinparttobiasesinindividualperceptionandjudgment Onewaytocombatthesetendenciesistohaveanadvisortoserveasarealitycheckpoint MythicalFixed PieBelief Thetendencytoseenegotiationinfixed pietermsvariesdependingonhowpeopleviewthenatureofagivenconflictsituation Itcanalsobediminishedbyholdingnegotiatorsaccountableforthewaythenegotiate 3 CognitiveBiasesinNegotiation 2 AnchoringandAdjustmentThechoiceofananchormightwellbebasedonfaultyorincompleteinformationandthusbemisleadinginandofitself Throughpreparation alongwiththeuseofdevil sadvocateorrealitycheck canhelppreventerrors IssueFramingandRisk Thewayanissueisframedinfluenceshownegotiatorsperceiveriskandbehaveinrelationtoit Thetendencytoeitherseekoravoidriskmaybebasedonthereferencepointagainstwhichoffersandconcessionsarejudged 3 CognitiveBiasesinNegotiation 3 AvailabilityofInformation Negotiatorsmustalsobeconcernedwiththepotentialbiascausedbytheavailabilityofinformationorhoweasyinformationistoretrieve Theavailabilityofinformationalsoaffectsnegotiationthroughtheuseofestablishedsearchpatterns TheWinner sCurse Thewinner scursereferstothetendencyofnegotiatorstosettlequicklyonaitemandthensubsequentlyfeeldiscountaboutanegotiationwinthatcomestooeasily Thebestremedyforwinner scurseistopreventitfromoccurring 3 CognitiveBiasesinNegotiation 4 Overconfidence Itisthetendencyofnegotiatorstobelievethattheirabilitytobecorrectoraccurateisgreaterthanisactuallytrue Ithasadouble edgedeffect Itappearsthatnegotiatorshaveatendencytobeoverconfidentabouttheirownabilitiesandthatthisoverconfidentaffectsawidevarietyofperceptionsandbehaviors TheLawofSmallNumbers Itappliestothewaynegotiatorslearnandextrapolatefromtheirownexperience Exampleof hothand fallacy 3 CognitiveBiasesinNegotiation 5 Self ServingBiasesFundamentalAttributionError Theeffectsofself servingbiases Self servingbiaseshaverecentlybeenshowntoinfluenceperceptionsoffairnessinanegotiationcontext Perceptualerrormayalsobeexpressedintheformofbiasesordistortionsintheevaluationofdata 3 CognitiveBiasesinNegotiation 6 EndowmentEffect Itisthetendencytoovervaluesomethingyouownorbelieveyoupossess Innegotiation theendowmenteffectcanleadtoinflatedestimationsofvaluethatinterferewithreachingagooddeal IgnoringOther sCognitions ReactiveDevaluation Itistheprocessofdevaluingtheotherparty sconcessionssimplybecausetheotherpartymadethem Suchdevaluationmaybebasedinemotionalityorondistrustfosteredbypastexperience 4 ManagingMisperceptionsandCognitiveBiasesinNegotiation Theyaretypicallyariseoutofconsciousawarenessasnegotiatorsgatherandprocessinformation Box5 4presentsasizeableinventoryofthevarietyofdecisiontrapsthatcanoccur Merelydiscussinghowtosetopeningoffers aspirationlevels andbottomlineswithteammemberswillnotreducetheeffectsofperceptualbiases Carefuldiscussionoftheissuesandpreferencesbybothnegotiatorsmayreducetheeffectsofperceptualbiases Reframing 5 Mood Emotion andNegotiation 1 Theroleofmoodandemotioninnegotiationhasbeensubjectofanincreasingbodyofrecenttheory Thedistinctionbetweenmoodandemotionisbasedonthreecharacteristics specificity intensity andduration Someselectfindingsareavailableasfollowing 5 Mood Emotion andNegotiation 2 NegotiationsCreateBothPositiveandNegativeEmotions MostresearchersagreethatemotionstendtomovethepartiestowardsomeofactionItheirrelationship suchasinitiatingarelationship maintainingtofixingtherelationship orterminatingtherelationship PositiveEmotionsGenerallyHavePositiveConsequencesForNegotiations Positivefeelingsaremorelikelytoleadthepartiestowardmoreintegrativeprocesses Positivefeelingsarealsocreateapositiveattitudetowardtheotherside Positivefeelingspromotepersistence 5 Mood Emotion andNegotiation 3 AspectsoftheNegotiationProcessCanLeadtoPositiveEmotions Positivefeelingsmayresultfromfairproceduresduringnegotiation Positivefeelingsmayresultfromfavorablesocialcomparisons NegativeEmotionGenerallyHaveNegativeConsequencesforNegotiators NegativeEmotionsmayleadpartiestodefinethesituationascompetitiveordistributive NegativeEmotionsmayundermineanegotiator sabilitytoanalyzethesituationaccurately NegativeEmotionsmayleadpartiestoescalatetheconflict NegativeEmotionsmayleadpartiestoretaliateandmaythwartintegrativeoutcomes 5 Mood Emotion andNegotiation 4 AspectsoftheNegotiationProcessCanL

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