I wrote recently about the impact of the anchoring effect on mediation. Improving Results in Mediation: Should the Defense Request a Pre-Mediation Demand? I wrote that human beings tend to rely too heavily on the first piece of information they
The Mediation and Negotiation Blog
The Mediation and Negotiation Blog, published by Steven G. Pearl, focuses on the application of behavioral economics and decision science to mediation and negotiation processes. It explores cognitive biases such as the anchoring effect, the endowment effect, and reference point shifts, and their impact on settlement negotiations. The blog discusses strategies for lawyers and mediators to improve negotiation outcomes by understanding human decision-making patterns, credibility in negotiations, and the use of quantitative analysis to assist parties in evaluating settlement options. Topics include pre-mediation demands, risk assessment, and techniques to facilitate resolution in zero-sum disputes, particularly in employment and civil litigation contexts.
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Latest from The Mediation and Negotiation Blog
Improving Results in Mediation: Should the Defense Request a Pre-Mediation Demand?
The study of human decision-making holds important lessons for people involved in all types of negotiations, including mediation. Learning the ropes will help the attorneys and their clients achieve better results in mediation. Employee E sues her former employer, Company…
Mediation and the Science of Decision Making: Conclusion
Daniel Kahneman and Amos Tversky revolutionized economics by changing the focus from hypothetical “rational actors” to real people, who frequently make bad decisions as a result of behavioral patterns and cognitive errors of which they are not aware. Learning to recognize these…
Mediation and the Science of Decision Making Part XI: Do The Math, With Pencil And Paper.
We talked last time about using the endowment effect and shifting reference points to help close deals. But how do you actually do that? One good way is by showing the parties the numbers: “What will you gain by resolving…
Mediation and the Science of Decision Making Part X: Shift Reference Points And Use The Endowment Effect To Close The Deal.
Very frequently, the parties to a negotiation will set reference points that do not overlap or allow for easy resolution. The plaintiff may have a bottom line of $200,000, while the defendant has a top dollar of $100,000. The likelihood…
Mediation and the Science of Decision Making Part IX: Think Like A Trader
Last time, we looked at one way to use behavioral economics to help our clients make better decisions in mediation by setting reference points before we begin negotiating. Today we discuss another way to do better in any negotiation: thinking
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Mediation and the Science of Decision Making Part VIII: Set Your Reference Points Before You Begin Negotiating
We have seen that behavioral economics holds valuable insights into the way that people make decisions. Specifically, behavioral economics teaches that behavioral patterns and cognitive errors play a tremendously important, if seldom recognized, role in decision-making.
Now we get to
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Mediation and the Science of Decision Making Part VII: States of Change — The Possibility and Certainty Effects
Consider this. You have a chance to win $1,000. Your chances improve by 5% in each step below. Is the news equally good in each case?
Step A: Going from 0% to 5%
Step B: Going from 5% to 10%
Step…