Quotulatiousness

May 1, 2017

QotD: How to negotiate badly (unless you’re in a movie)

Filed under: Europe, Government, Media, Politics, Quotations, USA — Tags: , , — Nicholas @ 01:00

Does the [Republican congressional] caucus nominate a leader who will be itching for more such fights? This would be bad for America’s already dilapidated political institutions and civil society. It would also, I must point out, be bad for the Republican Party, which still shows lingering signs of infection by the dreaded “Ask for the Stars, You’ll Get the Moon” bargaining strategy. (Ever notice that’s so beloved by Hollywood, and by almost no one who actually has to negotiate deals for a living?)

The idea behind this is that you will eventually settle for something about halfway between your initial demands, and what the other side is asking for. The winning strategy is therefore to ask for enormous concessions, include unrealistic demands as bargaining chips, and convince the other side that you’re just crazy enough to walk away if they won’t make a deal.

As it happens, we have just had a demonstration of this technique — a live drama, no Hollywood effects: Greek Prime Minister Alexis Tsipras tried it with the EU. This strategy worked so well that he ended up with a worse deal than the original offer, plus a banking crisis that is still unspooling. Somehow, this never happens in Hollywood movies.

It’s easy to see why Hollywood loves this strategy: It’s really easy to explain without chewing up screen time, and it’s dramatic. Why don’t real-world negotiators more often do this?

Megan McArdle, “Let’s See What Republicans Learn From Losing Boehner”, Bloomberg View, 2015-09-25.

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