What is anchoring in negotiations

Description

This Skill Bit shows that anchoring in negotiations is a psychological strategy where the first offer, or “anchor,” sets the tone for further discussions. This bias influences decision-making, as subsequent offers tend to orbit around this initial figure. Anchoring establishes the range of negotiation and can offer advantages to the party setting the anchor. However, it’s essential to counteract unrealistic anchors and adjust strategies based on new information. Overall, anchoring is a powerful tool in negotiations, but it requires careful preparation and ethical use to achieve desired outcomes.

Duration approx. 4 Min.

Tier: advanced