How does anchoring in negotiations work

Description

This Skill Bit shows that anchoring in negotiations leverages psychological biases and strategic maneuvers to shape the course of discussions. Rooted in cognitive biases, anchoring exploits individuals’ tendency to fixate on initial information, influencing subsequent judgments. Strategic negotiators strategically set initial offers to establish reference points, framing the negotiation’s range and dynamics. Despite efforts to counter anchors, the initial point often retains significant influence, underscoring the challenge of deviating from established norms in negotiation.

Duration approx. 4 Min.

Tier: proficiency