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

2. 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

3. 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’

4. 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

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