Selected

Benefits

Superior Court Civil Register

Member Benefits

Calendar of Events

Know Your Judge

Judge Your Judge

 

 

 

Volume II, Number 8 - May 2009 ●   Contact Us  •  Past Issue Archive   ●   

An E-Publication of the Los Angeles County Bar Association
Edited by Linda B. Bulmash


This Month's Topic: Gain/Loss Framing
 
You can influence you counterpart’s choice by wisely framing an offer.

Example A:  Choose either option 1 or 2:
     Option 1:  You receive $1000
     Option 2:  There is a 20% chance you will receive $5000 and an 80% chance you will receive nothing.

Example B:  Choose either option 1 or 2:
     Option 1:  You lose $1000
     Option 2:  There is a 20% chance you will lose $5000 and an 80% chance you will lose nothing.

When faced with certain gain or the possibility of a greater gain/no gain, people will be risk adverse and choose the certain gain (see example A above).  On the other hand, when faced with certain loss or the possibility of greater loss/no loss, people tend to be risk-takers (see example B above).

So how can you use this knowledge to your benefit?  Frame your offer as a gain so as to induce your counterpart to see your offer as getting a benefit rather than avoiding a risk or loss.
Linda B. Bulmash, Esq.
lbulmash@adrservices.org
www.bulmashmediation.com
Do you have a question about negotiation?
Do you have ideas for upcoming One Minute Negotiation Tips?
Would you like to submit a negotiation tip of your own?
We want to hear from you!       
Send us an email.