Objectives:

 

1. Students will learn about negotiation

2. Students will learn what is an anchor and understand the importance of setting an anchor

3. Students will learn about the advantages and disadvantages of giving the first offer

 

 

Lesson:

 

1. Court Case activity (Hook/Activity) - 5 minutes

• Two people in a group

• There will be a plaintiff and a defendant in each group

• Hand out information for each student and start to negotiate

• Ask about good tactics after the activity

 

1. Explain negotiation (Introduction) - 2 minute

• “is similar to bargaining where two parties will communication to dispute a specific process with the view to identifying a solution or outcome which is uniformly acceptable” (Nugent).

• “Negotiation normally occurs between two feuding parties to achieve medium terms” (Nugent).

 

1. Anchor exercise (Activity) - 5 minutes

• Hand out papers with different questions

• One asks about the temperature before asking about the price of the wine, and the other one ask about phone number before asking about the price of the wine

• Ask the student from each version of the handout to read out the result of the anchor exercise

• Relate the exercise to anchor

 

1. Explain an anchor (Lecture) - 2 minutes

• “Anchoring and adjustment is a phenomenon wherein an individual basis their initial ideas and responses on one point of information and the makes changes driven by that starting point” (Chen).

 

1. Examples of anchor (Lecture) - 2 minutes

• “Suppose that we asked you whether the average temperature in San Francisco was higher or lower than 558 degrees. Do you think this question would influence your estimate of the average temperature in the city?” (Orr and Guthrie).

 

1. First offer (video) - 2 minutes

• This video talks about the advantages and disadvantages of first offer

 

1. First offer (Lecture) - 2 minutes

• Give the opinion that some people think that we should never accept the first offer

 

1. Epilogue:

• Summarize the tactics

• Restate why are these tactics important

 

Material:

• Court Case exercise (handouts)

• Anchoring exercise (handouts)

• First offer video

 

 

 

 

 

Bibliography

 

“Business Negotiations: Making the First Offer.” Climate Change and the Coffee Industry, www.tradeforum.org/Business-Negotiations-Making-the-First-Offer/.

 

Chen, James. “Anchoring and Adjustment.” Investopedia, Investopedia, 13 Dec. 2018, www.investopedia.com/terms/a/anchoring-and-adjustment.asp.

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Nugent, Pam M.S. “What Is NEGOTIATION? Definition of NEGOTIATION (Psychology Dictionary).” Psychology Dictionary, 7 Apr. 2013, https://psychologydictionary.org/negotiation/

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Orr, Dan, and Chris Guthrie. “Anchoring, Information, Expertise, and Negotiation: New Insight from Meta-Analysis.” Semanticscholar.org, https://pdfs.semanticscholar.org/6925/c231612361cf285fe45f975d1a64b1fc979f.pdf