reading-2019-12-22

Sales Books

How to Make the Other Side Play Fair

By Max H Bazerman and Daniel Kahneman

The Problem The two sides in an adversarial negotiation rarely bring their most reasonable offers to the table. Rather, each stakes out a position to its advantage and seeks to give up as little as possible. This common approach is often costly to all involved.

The Solution A new negotiation strategy can efficiently lead to an equitable agreement: One side presents an objectively fair offer, challenging the other to make its own best offer and then allow an arbitrator to decide which of the two is more reasonable.

The Result The threat of losing in a final-offer arbitration will typically bring an unreasonable adversary back to the table with a more reasonable offer. The insurance giant AIG tested this strategy in an injury claims case, leading to a rapid, fair settlement.