In negotiations, first offers act as powerful psychological anchors ' and even skilled negotiators struggle to escape them. New research published in the Journal of Experimental Social Psychology finds that adopting a choice mindset when you receive a first offer can reduce anchoring: The simple act of reminding yourself that you can choose any counteroffer expands the range of options you consider, helping you negotiate on your own terms. Say you walk into a car dealership determined to stay within budget. The salesperson shows you a car you like and quotes a price of $41,435. You know there's room to negotiate, but when it's time to counter, that first number quietly takes over. Your counteroffer, the concessions, and the final deal all end up orbiting around $41,435. That's anchoring at work. In negotiations, first offers become psychological reference points, and people often fail to adjust far enough away from them, even though they are free to counter with any amount they...
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