Overcoming Cognitive Biases in Negotiation

Negotiation is a crucial part of many aspects of life, from business deals to personal relationships. However, as much as we like to think of ourselves as rational beings, we are all susceptible to cognitive biases that can cloud our judgment during negotiations. These biases can lead us to make poor decisions and leave value on the table, costing us in the long run.

Fortunately, there are steps we can take to overcome these biases and negotiate more effectively. Here are some common cognitive biases in negotiation practices and strategies for overcoming them:

Confirmation bias: This is the tendency to seek out information that confirms our existing beliefs and discount information that contradicts them. To overcome this bias, actively seek out information that challenges your assumptions and consider alternative viewpoints.

Anchoring bias: This refers to the tendency to rely too heavily on the first piece of information encountered when making decisions. To avoid this bias, try not to fixate on initial offers or positions and instead focus on underlying interests and priorities.

Overconfidence bias: This is the tendency to overestimate our own abilities and underestimate risks or uncertainties. To combat this bias, gather data from multiple sources, consult with others who may have different perspectives or expertise, and be open-minded about potential outcomes.

Recency bias: This refers to the tendency to give more weight to recent events or experiences than older ones when making decisions. To avoid this bias, consider all relevant factors over time rather than just focusing on recent developments.

Sunk cost fallacy: This is the tendency to continue investing resources into a project or decision based solely on past investments rather than objectively assessing current circumstances. To overcome this bias, regularly reassess costs and benefits throughout negotiations rather than being overly committed to a particular path. Peep another one of our posts for more detail here.

Groupthink: This is when individuals in a group or team adjust their opinions to conform to what they believe the consensus opinion is, even if they disagree with it. To overcome this bias, foster an environment of open dialogue and debate rather than attempting to reach a consensus too quickly.

By being aware of these cognitive biases in negotiation practices and taking steps to overcome them, you can improve your ability to negotiate effectively and achieve better outcomes for yourself or your organization.

Negotiation is an art form that takes practice and patience but by becoming aware of how our minds work during these situations we can become better communicators with those around us both professionally and personally.