Using Behavioral Economics in Settlement Negotiations
Most negotiators believe they make decisions based on facts. In reality, people make decisions based on how they perceive facts. That distinction matters. For all their complexity and technical sophistication, settlement negotiations are rarely driven by pure economic analysis. Human beings evaluate risk through a series of cognitive shortcuts and biases that influence how they receive information, assess proposals, and weigh alternatives. Behavioral economists have spent dec
Mediator’s Recommendations — Revisited
What they are, when they work, and when you should (and shouldn’t) ask for one At some point in nearly every mediation—often more than once—the parties hit a wall. More often than not, it happens when each side reaches the edge of its “acceptable” range—the number they came prepared to live with. Movement slows. The conversation tightens. And too many mediations end right there. The problem is that the Zone of Possible Agreement—the ZOPA—is often just beyond that point. But g
