Relationships 2.0: Become a Better Negotiator

What It Covers

Harvard Business School professor Max Bazerman reveals how negotiators sabotage themselves through overconfidence, anchoring biases, and egocentrism, using real cases from baseball contracts to corporate acquisitions to demonstrate rational negotiation strategies.

Key Questions Answered

• •Winner's Curse: Robert Campo paid $7.5 billion for Federated (double its $3 billion market value) to win a bidding war, then went bankrupt two years later—winning at any cost often means acquiring something overvalued.
• •Overclaiming Credit: When partners estimate their contribution to household work or group projects, totals reach 120-140 percent. Counter this by listing what each person contributed before assessing your own share to reduce bias by half.
• •Veil of Ignorance: Before negotiating, imagine you don't know which role you occupy (landlord versus tenant, buyer versus seller). This perspective shift produces fairer outcomes and reveals what neutral third parties would consider reasonable settlements.
• •Fall in Love with Three: Never negotiate when only one option exists. Identify at least two alternatives before making offers—this prevents desperation, allows strategic risk-taking, and creates leverage to walk away from unfavorable terms.