a car buyer is likely not only to assess how much the dealership made off of him, but also to compare his price with the deal his neighbor got. If the buyer’s neighbor bought the same model car for a higher price, he is likely to be more satisfied with his purchase than if his neighbor got a better deal.
Social comparisons can drastically skew our perception of a particular outcome. Unfortunately, our ability to make comprehensive and accurate social comparisons is limited. We typically compare our own outcomes with those who are close to us – neighbors, coworkers, and family members.
In addition, individuals or organizations sometimes limit our access to information that could improve the accuracy of our social comparisons; for example, many companies discourage employees from disclosing their salaries to another. Similarly, your brother-in-law may choose to tell you only about the stocks he purchased that increased in value.
As a negotiator, you need to recognize the limitations you face in developing a complete and accurate social comparison set. In addition, you should seek to guide the comparisons that your counterpart selects if your goal is a win-win negotiation. When engaged in labor negotiations, for instance, a management team might highlight recent labor contracts in which other unions received less advantageous terms than the union desires.
a car buyer is likely not only to assess how much the dealership made off of him, but also to compare his price with the deal his neighbor got. If the buyer’s neighbor bought the same model car for a higher price, he is likely to be more satisfied with his purchase than if his neighbor got a better deal.Social comparisons can drastically skew our perception of a particular outcome. Unfortunately, our ability to make comprehensive and accurate social comparisons is limited. We typically compare our own outcomes with those who are close to us – neighbors, coworkers, and family members.In addition, individuals or organizations sometimes limit our access to information that could improve the accuracy of our social comparisons; for example, many companies discourage employees from disclosing their salaries to another. Similarly, your brother-in-law may choose to tell you only about the stocks he purchased that increased in value.As a negotiator, you need to recognize the limitations you face in developing a complete and accurate social comparison set. In addition, you should seek to guide the comparisons that your counterpart selects if your goal is a win-win negotiation. When engaged in labor negotiations, for instance, a management team might highlight recent labor contracts in which other unions received less advantageous terms than the union desires.
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