Tag: anchoring effect

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Go on, make that offer FIRST…

One concept I’ve slowly learnt from business is that contrary to the commonly held wisdom, people who make the opening offer in a negotiation have the upper hand.

I’m currently looking for a house, overseas. And when I come to view places, typically there is a price indicated.  Although I may disagree with it, that price certainly puts a value perception in my mind about the house.… Read more

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Bargain with Odd numbers

http://www.yankeepotroast.org/archives/2008/11/brilliant_numbe.html
When negotiating for a salary, most of us reach for a nice, round number like $5,000 a month Or $120,000 a year.
But, by favouring all those zeros, we may be missing an opportunity to get a better deal, according to a new paper from researchers at Columbia Business School. They found that using more precise numbers in an initial request—or anchor, as it is known in psychology parlance—generally results in a higher final settlement.
… Read more