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CHAPTER FIVE Perception, Cognition and Communication Perception and Negotiation 1. The role of perception 2. Perception distortion in negotiation 3. Framing The Role of Perception Perception: The process by which individuals connect to their environment -People interpret their environment in order to respond appropriately -The complexity of environments makes it impossible to process all of the information -As a result people develop shortcuts to process information -These shortcuts create perceptual errors Perception Distortion in Negotiation Four major perceptual errors: 1. Stereotyping 2. Halo effects 3. Selective perception 4. Projection Stereotyping Halo Effects Stereotyping An individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic group “Old people are conservative; this person is old and therefore is conservative” Halo Effects An individual generalizes about a variety of attributes based on the knowledge of one attribute of an individual “He is smiling therefore he is also honest” Selective Perception Projection Selective Perception The perceiver singles out information that supports a prior belief but filters out contrary information The person who thinks “He is smiling therefore he is also honest” ignores behavior indicating the other party’s aggressiveness Projection People ascribe to others the characteristics that they possess themselves “I am honest therefore she is honest also” Cognitive Biases in Negotiation Negotiators have a tendency to make systematic errors when they process information. These cognitive biases, impede negotiator performance; they include: Irrational Escalation of Commitment Mythical Fixed-Pie Beliefs Anchoring and Adjustment Winners Curse Overconfidence The Law of Small Numbers Self-Serving Biases Endowment Effect Ignoring Other’s Cognitions Irrational Escalation of Commitment Mythical Fixed-Pie Beliefs Irrational Escalation of Commitment Negotiat
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