Proper Negotiation Training Can Show You That Losing Can Be More Effective Than Winning

People are not particularly fond of losing. Everybody loves a winner and it is essential for us all to be on the winning side. In fact, it is vital for many people to be on the winning side that research signifies that typically we have a pretty an interesting approach to dealing with likely threats.

In an area of study referred to as Prospect Theory, Kahneman and Tversky looked into the likely anomalies and contradictions in human behaviour. They found that research individuals when presented an alternative introduced in one way might present cautious behaviour but when offered essentially the same choice formulated in another way the same research subjects might exhibit risk seeking methods.

An important result of the analysis performed by Kahneman and Tversky is that they found that people's attitudes towards risks associated with prospective benefits are often very unlike their behaviour when it comes to risks associated with potential losses.

For example, when people are presented an option between getting $1000 with confidence or getting a 50% chance for getting $2500, they may well choose the certain $1000 in preference to the uncertain possibility of getting $2500 even though the analytical expectation of the uncertain option is $2500. This is a completely sensible mindset that is referred to as risk aversion.

But Kahneman and Tversky also found that the same people when confronted with a certain loss of $1000 as opposed to a 50% possibility of no loss or a definite loss of $2500 do usually select the risky option. This is called risk seeking behaviour.

What this means for you in the context of your business negotiation or negotiation training is the fact that it is really wise to show your counterparts the things they bear to lose if they do not move in the direction that you are suggesting. It is definitely best if you notify your counterparts the things they stand to achieve by shifting in your direction but the strength of your argument will be enhanced if you could increase the advantages the particular things that they are going to fall short on if they do not shift in your direction.

This kind of loss framing is most powerful if it is combined with the Scarcity concept of influence that states that we assign much more worth to those things which are less available. We should therefore focus on those things that are specifically relevant to our own suggestions and in addition to pointing out the advantages associated with going in our direction we should always also point out the specific, unique things that our counterpart might stand to lose when they do not move in our direction.

Making use of negotiation skills such as loss framing to your benefit is an excellent method which you could use the concept of losing to assist you to win.

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