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The Truth About Negotiations
book

The Truth About Negotiations

by Leigh L. Thompson
September 2007
Beginner
224 pages
2h 42m
English
Pearson
Content preview from The Truth About Negotiations

Truth 38. The framing effect

Which would you rather have?

A. $10,000 for sure

or

B. A 50-50 chance of winning $20,000 or nothing

This tantalizing proposition is an approach-approach conflict because both options are pretty attractive. (We’d like both of them!) However, we have a little bit of an internal conflict in choosing because as much as we would like to get $20,000, there is a 50 percent chance that we would walk away with nothing. When most people are given the A or B choice, the large majority choose A. (About 85 percent of the students in my MBA and executive courses would rather have $10,000 for sure than a 50-50 chance of winning twice as much money.)

This phenomenon illustrates a basic tenet of human behavior, called risk aversion ...

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Publisher Resources

ISBN: 9780136007364Purchase book