Setting goals and expectations in negotiation is psychologically important for several reasons. Firstly, once a goal is set, individuals tend to believe that anything beyond that goal is forfeited, which can motivate them to strive harder to achieve the set goal. Secondly, humans exhibit 'striving mechanisms' and tend to focus their actions and behaviors on a stated goal. This focus can help individuals to avoid getting trapped in inching towards their lowest number and instead, strive for their highest number.

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Bargaining for Advantage: Negotiation Strategies for Reasonable People

Ever wonder what makes a great negotiator? Read this book summary to learn about the latest social science and psychology research on negotiation. Get...

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There are compelling psychological reasons to set goals and expectations. Studies indicate that once a goal is set, subjects believe that anything beyond the goal has been forfeited and is left on the table. Also, it's been shown that humans exhibit "striving mechanisms" and focus their actions and behaviors on something once it's been stated. For this reason, it's essential to focus on your goals and expectations, not your bottom line. You don't want to be trapped in inching toward your lowest number when you could be striving for your highest number.

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Companies in traditional sectors like manufacturing or retail can apply the negotiation strategies discussed in "Bargaining for Advantage" by setting clear goals and expectations. This is because studies indicate that once a goal is set, individuals believe that anything beyond the goal has been forfeited and is left on the table. Therefore, it's essential to focus on your goals and expectations, not your bottom line. This prevents companies from being trapped in inching toward their lowest number when they could be striving for their highest number.

The lessons from "Bargaining for Advantage" can be applied in today's business environment in several ways. Firstly, setting clear goals and expectations is crucial. This is because once a goal is set, it becomes a focal point for actions and behaviors. Secondly, it's important to focus on your highest number, not your lowest, to avoid being trapped in inching towards your lowest number. Lastly, understanding the psychological aspects of negotiation, such as the "striving mechanisms", can help in achieving better outcomes in business negotiations.

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