Earlier research has found that alternatives not only make negotiators feel more powerful, they can also serve as high or low reference points, helping to frame the negotiation. Researchers wondered whether negotiators needed actual alternatives to get these benefits, or whether simply imagining one would be sufficient.
Across seven studies, using samples of over 2,500 MBA students, online participants, and working professionals, they hypothesized that imagining an attractive alternative offer would give them a reference point and motivate them to demand more from their opponents. Their findings suggest that, under the right circumstances, mentally simulating a realistic but ambitious alternative can help them reach more advantageous outcomes.
, to push for more optimal outcomes, and to walk away from the table when needed. But negotiators often have no alternative at all. For example, aby GMAC suggests that the average MBA graduate only has a single job offer to choose from, suggesting that many MBAs have to negotiate their job offer without an alternative to fall back on.is an Assistant Professor of Organizational Behavior and Human Resources at Singapore Management University’s Lee Kong Chian School of Business.
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