Dealmaking: Grappling with Anchors in Negotiation
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The following question was asked of Program on Negotiation faculty member and Harvard Business School and Harvard Law School profesor Guhan Subramanian: Question: I’m in a tough negotiation right now where the other side has made a very aggressive first offer. I know that I need to defuse his anchor, but I’m not sure how. What should I say and do? Answer: A well-known cognitive bias in negotiation, anchoring is the tendency to give too much weight to the first number put on the table and then inadequately adjust from that starting point.