Overview
This lecture discusses cognition, cognitive heuristics, and biases, focusing on their impact on negotiation processes and possible strategies to address biased decision-making.
Cognition and Mental Processes
- Cognition refers to the mental processes by which the brain produces thought.
- It includes both conscious (aware) and unconscious (automatic) thought.
- Cognition can be reflective (thoughtful comparison) or reflexive (automatic reaction).
- There is ongoing debate about whether humans think rationally or often take mental shortcuts.
Heuristics and Biases
- Heuristics are mental shortcuts or models our brains use to make decisions quickly.
- The availability heuristic is choosing options that come easily to mind.
- Recognition and following majority behavior are common heuristics.
- Anchoring is a negotiation heuristic where the first offer strongly influences the outcome.
- Heuristics can limit exploring full options and narrow negotiation possibilities.
Impact on Negotiations
- Bias in decision-making can lead to negative negotiation outcomes and long-term conflict.
- Cognitive shortcuts may prevent considering the full range of possible solutions.
- Biased thinking may limit "expanding the pie" and cause parties to disagree more easily.
- Everyone uses heuristics and biases, making them hard to eliminate.
Addressing Biases in Negotiation
- Training can reduce some implicit biases, but heuristics are nearly impossible to remove completely.
- Reframing issues (viewing as gains versus losses) can change how problems are understood.
- Using third parties or mediators introduces objectivity and helps counteract bias.
Key Terms & Definitions
- Cognition — the mental processes involved in thinking and understanding.
- Heuristic — a mental shortcut or rule of thumb for quick decision-making.
- Cognitive Bias — a systematic error in thinking that affects judgment.
- Availability Heuristic — favoring options that are most easily recalled.
- Anchoring — relying heavily on the first piece of information encountered in negotiation.
- Reframing — changing the way a problem or situation is viewed.
Action Items / Next Steps
- Review examples of cognitive heuristics in negotiation scenarios.
- Reflect on personal use of heuristics and possible biases in past decisions.
- Prepare to discuss strategies for reframing negotiation problems in the next session.