The Winner's Curse in Bilateral Negotiations PDF Download
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Author: William Samuelson
Publisher:
ISBN:
Category : Negotiation in business
Languages : en
Pages : 68
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Book Description
Author: William Samuelson
Publisher:
ISBN:
Category : Negotiation in business
Languages : en
Pages : 68
Get Book Here
Book Description
Author: William F. Samuelson
Publisher: Forgotten Books
ISBN: 9780366534418
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
Excerpt from The Winner's Curse in Bilateral Negotiations The economic theory of bargaining is built on the cornerstone of self-interest: when the Opportunity arises, profit-seeking individuals will negotiate and attain mutually beneficial agreements. Indeed, negotiation is often viewed as an analogue of or substitute for competitive markets that is, under the right conditions bargaining will generate Pareto efficient economic allocations, as will perfectly competitive markets.1 But perfect negotiations presuppose a number of conditions, in particular, that negotiators are perfectly rational and have perfect information about the bargaining situation. However, Bazerman and Neale (1983; Bazerman, 1983) have provided substantial evidence that negotiators deviate from rationality in systematically predictable ways. Short of the ideal of fully rational behavior, how will negotiations proceed? How should an individual negotiate when only imperfect or limited information about the negotiation setting is available? When he or she has worse information than the other side and both know it? What negotiating procedures are successful in reaching mutually beneficial agreements? About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Author: Sheryl Beth Ball
Publisher:
ISBN:
Category :
Languages : en
Pages : 194
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Book Description
Author: John H. Kagel
Publisher: Princeton University Press
ISBN: 0691218951
Category : Business & Economics
Languages : en
Pages : 419
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Book Description
An invaluable account of how auctions work—and how to make them work Few forms of market exchange intrigue economists as do auctions, whose theoretical and practical implications are enormous. John Kagel and Dan Levin, complementing their own distinguished research with papers written with other specialists, provide a new focus on common value auctions and the "winner's curse." In such auctions the value of each item is about the same to all bidders, but different bidders have different information about the underlying value. Virtually all auctions have a common value element; among the burgeoning modern-day examples are those organized by Internet companies such as eBay. Winners end up cursing when they realize that they won because their estimates were overly optimistic, which led them to bid too much and lose money as a result. The authors first unveil a fresh survey of experimental data on the winner's curse. Melding theory with the econometric analysis of field data, they assess the design of government auctions, such as the spectrum rights (air wave) auctions that continue to be conducted around the world. The remaining chapters gauge the impact on sellers' revenue of the type of auction used and of inside information, show how bidders learn to avoid the winner's curse, and present comparisons of sophisticated bidders with college sophomores, the usual guinea pigs used in laboratory experiments. Appendixes refine theoretical arguments and, in some cases, present entirely new data. This book is an invaluable, impeccably up-to-date resource on how auctions work--and how to make them work.
Author: Yoella Bereby-Meyer
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Even though experience was found to improve decision-making in several tasks, there are instances in which learning is ineffective. The current paper studies one example of the last category, namely the persisting tendency of negotiators in bilateral bargaining under asymmetric information to ignore the decisions of their opponent(s), which can result in negative profits also known as the "winner's curse". Bazerman and his colleagues studied this phenomenon extensively using a task known as the "Acquiring a Company" task. One surprising finding is that even experienced participants showed no adjustment to avoid the winner's curse. The current study suggests that the observed persistence of sub-optimal behavior is largely due to the variability in the environment that leads to an ambiguous feedback. Since participants adjust their behavior adaptively, i.e., they condition their behavior on outcomes of the previous rounds, which have a high variance, it is difficult for them to overcome the winner's curse in this situation. In a series of experiments using the "Acquiring a Company" task we decreased the variance in the payoff. We find that decreasing the variance improves performance, but it does not completely eliminate the winner's curse. However, even when participants were given explicit information about the expected profit of each bid, they still overbid, suggesting that the difficulty to learn to avoid the winner's curse can be partially attributed to the utility participants have from gambling. The results show the importance of giving negotiators noise-free feedback in order to improve negotiation skills.
Author: Max H. Bazerman
Publisher: Simon and Schuster
ISBN: 1439106835
Category : Business & Economics
Languages : en
Pages : 196
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Book Description
In Negotiating Rationally, Max Bazerman and Margaret Neale explain how to avoid the pitfalls of irrationality and gain the upper hand in negotiations. For example, managers tend to be overconfident, to recklessly escalate previous commitments, and fail to consider the tactics of the other party. Drawing on their research, the authors show how we are prisoners of our own assumptions. They identify strategies to avoid these pitfalls in negotiating by concentrating on opponents’ behavior and developing the ability to recognize individual limitations and biases. They explain how to think rationally about the choice of reaching an agreement versus reaching an impasse. A must read for business professionals.
Author: Leigh L. Thompson
Publisher: Psychology Press
ISBN: 1135423512
Category : Psychology
Languages : en
Pages : 299
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Book Description
Negotiation is the most important skill anyone in the business world can have today, because people must continually negotiate their jobs, responsibilities, and opportunities. Yet very few people know strategies for maximizing their outcomes in everyday and in more formal business situations. This volume provides a comprehensive overview of this emerging topic through original contributions from leaders in social psychology and negotiation research. All topics covered are core to the understanding of the negotiation process and include: decision-making and judgment, emotion and negotiation, motivation, and game theory.
Author: David De Cremer
Publisher: Springer
ISBN: 1137024798
Category : Business & Economics
Languages : en
Pages : 170
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Book Description
Everybody in business is involved in negotiating internally and externally. The impact of this can have consequences for revenue and profitability, so it is more important than ever to be an effective negotiator for business success. In Making Negotiations Predictable, two global experts give crucial insights into getting it right.
Author: John H. Kagel
Publisher: Princeton University Press
ISBN: 1400830133
Category : Business & Economics
Languages : en
Pages : 424
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Book Description
An invaluable account of how auctions work—and how to make them work Few forms of market exchange intrigue economists as do auctions, whose theoretical and practical implications are enormous. John Kagel and Dan Levin, complementing their own distinguished research with papers written with other specialists, provide a new focus on common value auctions and the "winner's curse." In such auctions the value of each item is about the same to all bidders, but different bidders have different information about the underlying value. Virtually all auctions have a common value element; among the burgeoning modern-day examples are those organized by Internet companies such as eBay. Winners end up cursing when they realize that they won because their estimates were overly optimistic, which led them to bid too much and lose money as a result. The authors first unveil a fresh survey of experimental data on the winner's curse. Melding theory with the econometric analysis of field data, they assess the design of government auctions, such as the spectrum rights (air wave) auctions that continue to be conducted around the world. The remaining chapters gauge the impact on sellers' revenue of the type of auction used and of inside information, show how bidders learn to avoid the winner's curse, and present comparisons of sophisticated bidders with college sophomores, the usual guinea pigs used in laboratory experiments. Appendixes refine theoretical arguments and, in some cases, present entirely new data. This book is an invaluable, impeccably up-to-date resource on how auctions work--and how to make them work.
Author: Michele J. Gelfand
Publisher: Stanford University Press
ISBN: 0804745862
Category : Business & Economics
Languages : en
Pages : 478
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Book Description
In the global marketplace, negotiation frequently takes place across cultural boundaries, yet negotiation theory has traditionally been grounded in Western culture. This book, which provides an in-depth review of the field of negotiation theory, expands current thinking to include cross-cultural perspectives. The contents of the book reflect the diversity of negotiationresearch-negotiator cognition, motivation, emotion, communication, power and disputing, intergroup relationships, third parties, justice, technology, and social dilemmasand provides new insight into negotiation theory, questioning assumptions, expanding constructs, and identifying limits not apparent from working exclusively within one culture. The book is organized in three sections and pairs chapters on negotiation theory with chapters on culture. The first part emphasizes psychological processescognition, motivation, and emotion. Part II examines the negotiation process. The third part emphasizes the social context of negotiation. A final chapter synthesizes the main themes of the book to illustrate how scholars and practitioners can capitalize on the synergy between culture and negotiation research.
