Become a Smarter Negotiator By Using Prospect Theory

Want to make someone an offer they can't refuse? Understand how our minds are hung up on loss aversion, says former FBI negotiator Chris Voss.

Technology & Innovation

In 2002, Daniel Kahneman and Amos Tversky won the Nobel Prize in Economics for a behavioral theory they created and refined between 1979 and 1992: prospect theory. It explained how people weigh up risks in decision making, and part of its findings revealed that we are inherently loss averse, meaning we give at least twice as much decision-making weight to the idea of losses than gains. Losing $5, explains former FBI negotiator Chris Voss, feels like losing $10, and the prospect of gaining $5 will feel joyless coompared to the fear of losing $5. This can be leveraged in negotiations simply by pointing out what is going to be lost if a deal isn’t made, or something isn’t done. The "crazy mathematics" we do in our heads isn’t rational, but understanding it will give you an upper hand in your next negotiation. Chris Voss's book is Never Split the Difference: Negotiating as if Your Life Depended On It.

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How to Think Like an FBI Negotiator? Use Empathy.

Former FBI negotiator Chris Voss sheds light on communication and indirect messages, the value of empathy in business and in life, and when and how to walk away from a deal.

Technology & Innovation

Chris Voss, former FBI negotiator and current CEO of the Black Swan Group, knows a few things about striking a deal and equally as much about walking away from one that has soured or lost its direction.

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The secret to gaining the upper hand in negotiations, with a former FBI negotiator

Ex-FBI crisis negotiator Chris Voss explains the golden question that will give you the upper hand in a negotiation.

Technology & Innovation

Negotiating is hard, and it's even harder when there is something you really want. The stakes are higher, and you may not know how to get the upper hand. Negotiating takes skill, it's something that a person needs to hone over time through practice, so they can carefully judge when to swoop in for a win and when to hold back. It's a delicate, instinctual art. But it can definitely be learned.

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Top Video of 2016 #9: 3 Tips to Succeed at Business Negotiations from an FBI Hostage Negotiator

Our brains react subconsciously to what is said during business negotiations. To succeed, it's important to choose your words carefully and be aware of the tone of your voice.

Technology & Innovation

Mirroring is a phenomenon frequently observed between two people in conversation. When a person is mirroring who they talk to, mimicking their body language and enthusiasm, it is a signal that the two people are at ease with each other and have taken a similar point of view.

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