What are the psychological reasons for setting goals and expectations in negotiation?

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.