In this episode, we delve into the common pitfalls that negotiators face which lead to value drain in dealmaking. Our guest Paul Papayoanou identifies four types of value-destructive behaviours and shares insights on avoiding these traps. He also outlines the characteristics of an effective dealmaker, emphasising the importance of being a savvy strategist who can balance toughness with fairness. Furthermore, we explore the role of preparation and reputation in successful negotiations, and how game theory can be applied to enhance negotiation strategies.
Paul Papayoanou is a Senior Advisor with Decision Frameworks, a boutique consultancy based in Houston, Texas, serving clients worldwide. He has taught at the University of California San Diego and Harvard University, and is the author of "Game Theory for Business: A Primer in Strategic Gaming." Paul's extensive experience in game theory and dealmaking provides invaluable insights for anyone looking to improve their negotiation skills. You can read his recent article on addressing value drain in dealmaking here (or e-mail Paul for the pdf version: paul@decisionframeworks.com).
Paul has already been a guest on our show. You can check out his episode on how to bid in an auction here or here.
