Labor relations, fairness and negotiations - Article: The psychology of negotiation - The negotiator as motivated information processor

5 important questions on Labor relations, fairness and negotiations - Article: The psychology of negotiation - The negotiator as motivated information processor

The cognitive heuristics principle to understand exploitation of counterpart:

Three heuristics that people use to make sense of complex environment and that may lead to suboptimal or incorrect conclusions are:
  • Anchoring:  leads to inadequately high or low aspirations, and thus deadlock of personal and joint gain (loss framing tends to decrease intergrative agreements)
  • Availability:
  • Representativeness:  the use of stereotypes to interpret and predict the counterparts’ behaviour (reputation)

Another heuristic is fairness to settle disputes:

Three types of the prominent solution heuristics following from fairness:
  • Equity
  • Equality
  • Need, opportunities and historical precedence

The naïve realism principle:

The individuals tendency to assume that he or she sees the world as it is, and that other perceivers will share these perceptions, this leads to:
  • optimistic overconfidence: can lead disputants to forego attempts at settlement, believing that time is on their side and that victory is just around the corner
  • strong tendency for negotiators to engage in confirmation rather than disconfirmation of their initial beliefs

The naïve realism principle: Negotiators make sense of their fuzzy situation by assuming others, including their counterpart, views and things like them --> inadequate assumptions and conclusions about the state of negotiation
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Epistemic motivation and the deep thinking principle:

People have limited cognitive capacity and are bound to use cognitive heuristics, to engage in erroneous reasoning and to perceive the world exclusively from their own perspective

People have the choice between two strategies of processing information:

  1. solve logical problems, to evaluate arguments, or to form impressions of others through a quick, effortless and heuristic processing of information that rests on well-learned prior associations
  2. Individuals may engage in more effortful, deliberate and systematic processing that involves rule-based inferences

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