Negotiation Situations: Examples of When Negotiators Assume Too Much
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Negotiation situations, examples of when negotiators know too much or too little at the bargaining table, and how to deal with information asymmetry in negotiation
Negotiation situations, examples including when negotiators assume too much about their counterparts at the bargaining table, present unique challenges to negotiators, each depending on the overall bargaining situation and context. One pitfall is that decision makers often overlook others’ viewpoints. When we do take others’ thinking into account, we tend to assume that they know as much as we do. For this reason, marketing experts are generally worse than non-expert consumers at predicting the beliefs, values, and tastes of consumers.
Similarly, individuals who correctly solve a problem overestimate the percentage of their peers who will be just as successful solving the same problem.
Researchers Colin L. Camerer, George Loewenstein, and Martin Weber have shown that once people know something, they assume that others without access to this knowledge will nonetheless behave as if they share the same privileged information.
This phenomenon has been labeled the curse of knowledge. Whenever you approach a negotiation as an expert, it’s important to take a step back and consider how a novice might see things.
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