Three School of Bargaining Ethics

Negotiations

By: Andrés Banús & Rita Benmakhlouf

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The Three Schools

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The “It’s a Game” Poker School

The founder was Albert Z Carr, wrote a book called “Business as a Game”.

People who adhere to this school admit that deception is essential to effective play in both arenas.

Both player, exhibit a robust and realistic distrust of the other fellow.

How to Play

Someone opens, and then people take turns proposing terms to each other. You can play or pass in each round.

The goal is to get the other side to agree to terms that are close as possible to your last proposal.

Flaws in the Game The fact that bargaining is a game, the

idealists and the pragmatists do not agree about this idea.

Every player is supposed to know the rules. This is impossible since the rules change in different industries and regions of the world.

The laws differ even within a single jurisdiction, so often a lawyer is needed to decide what to do.

Bargaining is an aspect of social life, NOT a special activity.

Home Ethics apply to Work.

Deception is NOT ruled out!(though may be uncomfortable and frowned upon)

Preference to Honesty.

The “Do the Right Think Even if it Hurts” Idealist School

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Filled with Romanticism.(Draws it’s power from Philosophy & Religion)

Negotiation is NOT a game!

Tie Business with Social Life.

The Goody Two-Shoes

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The ‘’ what goes around comes around’’ Pragmatist School

In common with the Poker School, they view deception as a necessary part of the negotiation process.

They prefer not to use misleading statements or lie if there is practical alternative.

People adhere to this school more for prudential than idealistic reasons.

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Pragmatist sometimes draw fine distinction between lies about hard core facts of a transaction.

Pragmatists have different technique such as , to avoid answering questions, false justification.

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Assume you are negotiating to sell a commercial building and the other party asks whether you have another offer.

(You DO NOT)

What would the three schools recommend?

The Ethical Schools in Action!

What would THEY do?

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SchoolBluff! (LIE)

Lie about alternatives.

Taking into consideration:

1.Could I easily be found out?2.Can the bluf help me leverage?

Maybe lie about…something else

Truth Power!

Use facts!

Not prone to mislead!

Sophisticated!

DeceptiveBlocking Techniques

5 Techniques

1. Out of Bounds!2. Ans. Dif. Q.3. Dodge Q.4. Ans. Own Q.5. Change subject

BLOCK!

Preserve leverage (without being deceptive) Poker Players tend to like more leverage.

Preserve relationships and reputation.

Pragmatics discourage this if if lie may come back to haunt you.

What could ANYONE do?

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Which school do YOU belong to?

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Thank you for your attention!