Question

Juanita is the lead negotiator on a team that is handling the sale of a mineral extraction company. She knows her weakness as a negotiator and is determined to overcome it. Before starting, she works with her team to set a reasonable reservation price. She also reviews her BATNA and schedules breaks every 20 minutes during the negotiations. What mental error is she actively trying to avoid?

Answer 1

Answer: Irrational escalation

Explanation: Irrational escalation of commitment occurs when an individual's tends to make irrational decisions in situations where walking away should have been the best. The irrational escalation of commitment in the context above could result due to circumstantial nature of a negotiation or competitiveness whereby negatiators ends up paying or making overboard decision in situations where it isn't necessary.

In the context above, in other to avoid irrational escalation of commitment, Juanita and her team already set a reasonable reservation price and she frequently checks her BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT, which is what a negatiator will do if they fail to reach an agreement. This ensures that irrational decision is avoided in the course of a pronloged or competitive negotiation.