Sample frameDay 143·Negotiation · Trade

Good morning. Every number you move to says something about what you've got left. The other side reads the numbers far more carefully than the argument.

Negotiation.

The Concession Pattern

5 min read·Apply by lunch

The question

Take the last deal you closed and write your own figures out in order, from opening number to signature. If the gaps between them held steady or widened, the person opposite had your schedule by your second move — so what exactly were you negotiating for the rest of it?

The idea

Chester Karrass negotiated contracts for Hughes Aircraft before taking a doctorate at the University of Southern California, and he did something unusual with it: he put experienced business negotiators into controlled bargaining experiments and watched what they did rather than recording what they said they did. The Negotiating Game (1970) reported the pattern that made his name. The people who finished ahead weren't the better arguers. They opened ambitiously, conceded in smaller steps than their counterpart, and conceded more slowly. The people who lost ground gave away large amounts early to demonstrate good faith, and they were read, correctly, as having more where that came from. His point is that a concession is not a gesture, it is data. Each one tells the other side how far you're still willing to travel, and a steady rhythm of equal concessions is an open invitation to keep pushing. Deal teams rehearse the argument and improvise the numbers. The numbers are the argument.

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