For those buyers who did not reach agreement, how do you feel? For those sellers who did not reach agreement, how do you feel?

Blue Buggy Negotiation What is the purpose of negotiation? Maximize economic utility Why might buyers pay more than they should? Overly committed to product Lack of planning Selective consideration of information

Why might sellers accept less than is rational? A bird in the hand Strong aversion to risk Relational considerations Friends Emotional Appeals ‘I’ll take great care of this car’

Making irrational agreements Agreement bias; feeling we’ve failed if we can’t work something out Lack of preparation or analysis Reaching agreement is different from achieving stated goals

Post-negotiation Reflections What role did you have? How did you feel about the negotiation? What did you take-away from the experience?