BazermanMoore

164 Chapter 9: Making Rational Decisions in Negotiations
the job. After all, if your new employer were prepared to offer a guaranteed annual
bonus of at least a million dollars, you might be willing to work the rest of the year for
no salary at all. Again, nothing is settled until everything is settled.
Make Multiple Offers Simultaneously
Many negotiators try to put an offer on the table early to ‘‘anchor’’ the discussion. Unfortunately,
negotiators often make such offers before working hard to create additional
value. Because anchors have such a strong impact, they can overshadow subsequent
discoveries. Therefore, you should avoid putting an offer on the table before actively
collecting information.
Sometimes, even after actively pursuing information, you may find that you cannot
extend a single offer that creates value for both sides. When this happens, consider the
possibility of presenting several package offers. Most of us put one offer on the table,
and when the other side turns it down, we know little more than we did before we
made the offer.
A better strategy is to make multiple package offers simultaneously, in which all of
the offers are equally valuable to you. The other party might respond by saying that all
three (or four or five) of your offers are unacceptable. Don’t be discouraged. Instead,
ask: ‘‘Which offer do you like the most?’’ or ‘‘If I was to rework one of the offers, which
one is the best starting point? What do you like about it? What do you not like about
it?’’ The other party’s preferences will provide you with valuable hints about where to
find trades that can create value.
Making multiple package offers simultaneously also allows you to come across as a
flexible negotiator. Providing multiple options signals that you are willing to be accommodating
and that you are interested in understanding the other party’s preferences
and needs. So, the next time you are preparing to make an offer, don’t make just one.
Rather, make several offers (of equal value to you) simultaneously.
Search for Post-Settlement Settlements
Imagine that you have just signed a complex deal. You are pleased with the outcome,
and so is the other party. Most negotiators believe that their deal-making work is now
concluded. Wise negotiators, however, continue to seek out ways to increase the size of
the pie. After a contract is signed, consider asking the other side whether she would be
willing to take another look at the agreement to see if it can be improved.
Raiffa (1985) suggests that after negotiators have found a mutually acceptable
agreement, they should employ a third party to help them search for a Pareto-superior
agreement—one that is potentially even better for both parties than the agreement they
already reached. Under this scenario, each negotiator can reserve the right to veto any
new settlement proposed by the third party and revert to the original agreement. With
this insurance in hand, Raiffa contends that negotiators may be more willing to allow
a third party to create a superior agreement, which is known as a post-settlement
settlement (PSS). Based on Raiffa’s insight, negotiators should look for a PSS as a last
step in creating value (Bazerman, Russ, & Yakura, 1987). This process does not necessarily
require the help of a third party.