Naivete and Cynicism in Negotiations and Other Competitive Contexts by Chia-Jung Tsay, Lisa L. Shu and the great Max H. Bazerman. Executive Summary from Harvard Working Knowledge below:
In business and in life, it’s important to strike a smart balance between naïveté and cynicism. Act too naïvely, and someone is bound to take advantage of you. Skew cynical, and you may miss out on new opportunities with good people. This paper discusses the decision errors inherent in leaning too far in either direction. Research was conducted by Chia-Jung Tsay, Lisa. L. Shu, and Max H. Bazerman of Harvard Business School. Key concepts include:
Naïveté is more than a glut of trust. More broadly, naïve behavior refers to a failure to make the best decision, due to a lack of consideration of other people’s strategic and behavioral perspectives. We are likely to make naïve decisions when we don’t think through the likely future decisions of other parties. A cynic, on the other hand, may avoid a business transaction due to an assumption that the seller’s self-interested motives will be harmful to him or her-even if logic shows that the deal would likely benefit both parties. When people withhold from trusting others, they usually lack opportunities to learn whether their trust would have reaped rewards. But when they offer their trust and are subsequently burned, they learn hard lessons about trust. This unbalanced feedback breeds cynicism.
In laboratory studies, the best negotiators were those who had a tendency to think about the perspectives of others. However, most people lack sufficient perspective-taking ability. The researchers suggest that training mechanisms should be developed to increase that ability.
Two Minute Trainings by Maria SimpsonI have always maintained that, if people weren’t so afraid of the process of disagreeing, they would have much better outcomes and more creative solutions...
By Maria Simpson“‘We’ve sustained damage, but we are still able to maneuver.’ Spock to Captain Kirk.” I don’t get it, she said, pointing to the little sign on the wall in the...
By John R. Van WinkleKluwer Mediation BlogLack of flexibility is probably one of the most difficult obstacles to resolve any dispute. The absence of flexibility, limits the ability to reach agreements and ultimately makes...
By Andrea Maia
With the purchase of a Featured Membership, you will be shown on the front page of Mediate.com to web site visitors from your city and region (“state” if you are in the USA). You may appear in more than one city/region by purchasing additional locations.