Navigating Negotiation Ethics and Economics: The ‘Best’ Offer Dilemma
Host: Philip Brown, Founder of The Negotiation Club
Guest: Remi Smolinski Professor at HHL Leipzig Graduate School of Management
“The word ‘best’ in negotiation isn’t just a question; it’s a strategic tool that can reveal hidden truths.”
Episode Overview:
In this insightful episode of The Negotiation Club Podcast, we sit down with Professor Remi, a renowned negotiation expert and researcher, who has made significant contributions to the field of negotiation through his teaching, research, and the founding of a global negotiation competition. This episode delves into a critical aspect of negotiation language: specifically the use of the word "best" when phrasing a request for a proposal.
There is Negotiation Research Too;
Professor Remi and his team conducted a comprehensive research study with nearly 500 participants to explore the implications of asking for the "best" offer in a negotiation. The findings reveal that this seemingly simple question can place the responding party in a challenging position, balancing ethics with economic benefits.
By asking for someone's "best" offer, you're essentially probing for the minimum they are willing to accept, which can lead to a significant reduction in their surplus.
Curiously, the study found that while over 80% of participants responded to the "best" question, only 15% were fully transparent, revealing their true reservation point. This highlights that while the word "best" can occasionally uncover the most advantageous terms for the asker, it also often results in guarded responses.
Research Link: "What is Your Best Price?”—An Experimental Study of an Alternative Negotiation Opening"
In our discussion, we emphasise the strategic use of the word "best" and the delicate balance it necessitates. Once a party has declared their "best" position, challenging them further may question their integrity, potentially backing them into a corner.
This episode also covers the importance of delivering responses with confidence, avoiding soft language that can undermine perceived commitment.
Key Negotiation Takeaway:
Knowing about the technique is not the same as being able to apply it effectively or respond when it is used against you. We encourage our listeners to not just understand this tactic theoretically but to actively practice it. The best way to do so is by joining a negotiation club where you can test these skills in a controlled environment. If you don't have access to a local club, consider joining ours or even starting your own.
You can find out more details on how to use this negotiation technique and some of the pitfalls to avoid at The Negotiation Club Tactics Page.
Negotiation Tactic Link; The BEST Negotiation Label
Negotiation Card "The 'BEST' Label"
Purposeful practice is crucial in mastering negotiation skills and becoming adept at handling real-world scenarios. As a special addition, we are excited to announce the creation of a unique negotiation card as part of our Podcast Negotiation Card Series.
This card, inspired by the discussions in this episode, will be detailed on our website and available for individuals to use in their own practice sessions. Be sure to visit our website for more information and to access Remi's detailed research findings and further resources.
FOLLOW, LISTEN, PRACTICE!
Tune in to this insightful episode and many more as they are shared to listen and learn from real negotiations but do take it one step further... because "Practice makes Perfect", and our club meetings provide the ideal environment to refine this essential technique.
- JOIN THE NEGOTIATION CLUB HERE
- REGISTER FOR A FREE NEGOTIATION TASTER HERE
The Negotiation Challenge For PROFESSIONALS
The Negotiation Challenge is one of the most prestigious international negotiation competitions. Over the years The Negotiation Challenge has hosted the world’s best negotiators, allowing them to share their passion and compete against each other in realistic negotiation situations.
Based on the extensive experience in designing and organising negotiation competitions, The Negotiation Challenge has launched a global negotiation competition for professionals and a global negotiation competition for students.
The professionals competition is open to all passionate negotiators from business, legal services, politics and diplomacy, across all seniority and hierarchy levels.
The competition rests on solid academic foundations of its founders and operates in a methodologically proven format. It gathers world’s best professional and passionate negotiators and offers them an opportunity to demonstrate their negotiation mastery and compare their skills with their like-minded counterparts from around the world.
Due to its global reach, open, impartial and highly competitive character combined with rigorous scientific approach; The Negotiation Challenge is an unofficial World Championship in Negotiation.
Professional Competition Link: "The Negotiation Challenge"
The Negotiation Challenge For STUDENTS
The Negotiation Challenge has hosted some of the world’s best student negotiators from leading universities, allowing them to share their passion and negotiate with each other based on realistic simulations.
The Negotiation Challenge is open to all students independently of their major. Most participating teams are enrolled in graduate programs at business and law schools but we also kindly invite students of other majors to register for the competition.
Student Competition Link: "The Negotiation Challenge"