Overview
This lecture covers the concept of cognition, discusses cognitive heuristics and biases, and explains their impact on negotiations, including potential strategies to mitigate their negative effects.
Cognition and Mental Processes
- Cognition refers to mental processes that produce thought, both conscious and unconscious.
- Conscious thought involves awareness of thinking; unconscious thought happens automatically without our awareness.
- Cognitive processes can be reflective (comparing to prior knowledge) or reflexive (immediate reactions).
- Rational thought involves logical, thorough analysis; irrational thought relies on shortcuts without full consideration.
Cognitive Heuristics
- Heuristics are mental shortcuts or models that people use to make decisions quickly.
- The availability heuristic means people choose the option most easily recalled, not necessarily the best.
- Recognition heuristic leads to selecting familiar options over correct ones.
- Other heuristics include following what the best or majority do, rather than what is correct.
- In negotiation, the anchoring and adjustment heuristic leads people to focus on initial offers, limiting exploration of possible options.
Cognitive Biases in Negotiation
- Biased thinking can lead to negative negotiation outcomes, such as missed solutions or increased conflict.
- Cognitive biases may narrow the range of possible agreements and limit creative solutions.
- Bias can be a source of disagreement or conflict between negotiating parties.
Addressing Heuristics and Biases
- Heuristics and biases are nearly impossible to eliminate, as all humans rely on them.
- Increased knowledge about biases does not necessarily reduce their effect.
- In-depth training may help reduce certain implicit biases, but reliance on heuristics persists.
- Reframing issues (seeing them as gains vs. losses) can help counteract some biases.
- Involving third parties or mediators introduces more objective perspectives and helps reduce bias impacts.
Key Terms & Definitions
- Cognition — The set of mental processes that produce thought.
- Heuristic — A mental shortcut or rule-of-thumb used for decision-making.
- Cognitive bias — A systematic error in thinking that affects decisions and judgments.
- Anchoring — Focusing on an initial offer or piece of information in decision-making.
Action Items / Next Steps
- Review negotiation examples involving cognitive biases.
- Practice reframing negotiation problems to identify alternative solutions.
- Consider how third-party mediation could change negotiation outcomes.