Naval Turn Short-Term Games Into Long-Term Games
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Jul 15, 2019 Explore how to enhance negotiation leverage by shifting focus from short-term wins to long-term relationships. Discover the significance of emotional investment in achieving Pareto optimal solutions. Delve into game theory, converting single-move dynamics into multi-move strategies. Learn practical lessons through real-life scenarios, such as home renovations, illustrating the importance of building trust and ongoing partnerships.
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Pareto Optimality and Superiority
- Pareto optimal solutions represent the best possible outcome, where any change leads to a decline in at least one aspect.
- Pareto superior solutions improve certain aspects without worsening others, making them ideal in negotiations.
Winning Negotiations
- Win negotiations by caring less than the other party, as excessive desire allows them to leverage higher prices.
- If outmatched in a negotiation, turn it from a short-term interaction into a long-term one.
Home Renovation Negotiation
- Home renovations are a prime example of high-cost, low-information, single-move games where cheating is probable.
- Turn such scenarios into multi-move games by staging payments or leveraging reputation and reviews.