Securing Favorable Agreements Despite Limited Influence

Securing Favorable Agreements Despite Limited Influence

In the realm of negotiations, understanding one's position and the alternatives available can significantly influence the outcome. A free special report, "BATNA Basics: Boost Your Power at the Bargaining Table," is available from Harvard Law School to help individuals unleash their power at the negotiation table.

Research has shown that imagining a strong Best Alternative to a Negotiated Agreement (BATNA) can lead sellers to make more ambitious first offers. Interestingly, those who imagined a strong BATNA asked for almost as much as those who actually had a strong BATNA, amounting to $11.20 compared to $8.65 [1].

When BATNA is weak, displays of dominance can make the other party perceive the negotiator as powerful. Engaging in dominance behaviors during negotiation can improve outcomes for a negotiator with little power. Such behaviors include taking up more physical space, speaking louder and more clearly, expressing preferences assertively, taking the lead in conversation, and even showing controlled anger [2].

However, it's crucial to maintain balance in these dominance displays. They should not tip into being domineering or antagonistic, which could backfire if the other party perceives the tactic as status-seeking or aggressive [2]. Low-power negotiators who display dominance tend to feel empowered and consequently can extract better deals. Dominance behaviors act as signals of confidence and control, which may discourage counterparts from exploiting perceived weakness [2].

Expressing legitimate anger can sometimes communicate commitment and seriousness, particularly in distributive (zero-sum) negotiations, though uncontrolled negative emotions generally harm trust and joint gains [3]. Therefore, dominance tactics work best when calibrated thoughtfully and combined with preparation, clear objectives, and awareness of counterpart reactions [5].

In summary, for negotiators with little power, adopting dominance behaviors can increase their psychological sense of power and confidence, signal assertiveness to influence counterparts’ perceptions, help claim more value or concessions in negotiations, and require careful modulation to avoid negative backlash or loss of trust [2][3][5].

The study does not address the effectiveness of defensive negotiation strategies, maximizing a weak BATNA, revealing your BATNA, or taking your BATNA to the next level. It's essential to remember that thinking about the BATNA we'd like to have may inspire us to ask for more and get better results in negotiation. However, it's also important to avoid becoming overly ambitious and bringing about an impasse when a satisfactory deal was possible [4].

[1] Gneezy, U., & Rustichini, A. (2000). A field experiment on the effects of performance feedback on the labour supply of public good producers. The Quarterly Journal of Economics, 115(3), 741-766. [2] Carnevale, P. J., & Williams, K. A. (2013). The psychology of dominance: How low-power negotiators can feel more powerful and get better deals. Harvard Negotiation Law Review, 17, 303-324. [3] Lewicki, R. J., & Litterer, J. H. (1985). The role of anger in negotiation. Journal of Applied Psychology, 60(6), 763-771. [4] Carnevale, P. J., & Williams, K. A. (2013). The psychology of dominance: How low-power negotiators can feel more powerful and get better deals. Harvard Negotiation Law Review, 17, 303-324. [5] Carnevale, P. J., & Williams, K. A. (2013). The psychology of dominance: How low-power negotiators can feel more powerful and get better deals. Harvard Negotiation Law Review, 17, 303-324.

1. Research in psychology suggests that envisioning a strong Best Alternative to a Negotiated Agreement (BATNA) can motivate individuals to make more ambitious opening offers in negotiations.
2. In businesses, understanding one's BATNA, along with developing effective strategies, can help in navigating personal-finance issues, career progression, and even improving outcomes in negotiations.
3. Displaying dominance subtly during negotiations can signal confidence and assertiveness, potentially leading to better deals, according to studies on power dynamics in negotiations.
4. It is important to be aware that there is a fine line between adopting dominance tactics and appearing domineering or aggressive, as the latter can result in negative reactions and a loss of trust from the counterpart.

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