Negotiation is an essential part of our daily lives. Whether you are making a deal with a client, discussing a salary raise with your boss, or simply trying to resolve a conflict with a friend or family member, negotiation skills are crucial. But have you ever thought about what is really valued in negotiation? Is it the tangible value, such as cost or revenue, or is it the intangible value, such as trust or fairness?
What does Science say?
According to a study conducted by Curhan, Elfenbein, and Xu in 2006, the answer is both. Their research shows that in short-term negotiations, tangible value is what matters most. This includes aspects such as cost and revenue, which are the primary concerns for many business negotiations. However, in long-term negotiations, intangible value becomes predominant. This includes aspects such as trust and fairness, which are crucial for building long-lasting relationships.
What do you value most in your negotiation?
It's essential to know what you value most in your negotiation. Is it cost, revenue, trust, or fairness? Everyone has their priorities, and knowing what you value most can help you negotiate more effectively. For example, if you are negotiating a long-term deal, you may want to focus on building trust and fairness, which can lead to a more positive and sustainable relationship. On the other hand, if you are negotiating a short-term deal, you may want to prioritize cost and revenue.
Conclusion
Negotiation is a complex process, and there is no one-size-fits-all approach. What you value most in your negotiation may differ from what someone else values. It's important to take the time to assess your priorities and understand the other party's priorities to reach a mutually beneficial agreement. Keep in mind that while tangible value is crucial in short-term negotiations, intangible value, such as trust and fairness, is essential for building long-lasting relationships.
References
Curhan, J. R., Elfenbein, H. A., & Xu, H. (2006). What do people value when they negotiate? Mapping the domain of subjective value in negotiation. Journal of Personality and Social Psychology, 91(3), 493–512. https://doi.org/10.1037/0022-3514.91.3.493
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