Ploychompu Apisirimongkhonkun 5671023MS 6526 Negotiation1. What is Irrational Escalation of Commitment Bias? Provide an example to support your answer. It's one of the cognitive biases. The irrational escalation of commitment bias is linked to individual perception and judgment. It is a situation in which individuals pursue a course of action, even if it fails. Individuals look for evidence to confirm that the cause of action is the correct choice. Sometimes people continue with a failing course of action after information shows that this may not be the right way to go or do it. For example, gamblers continue to gamble after losing a lot of money. Continuing to play after heavy losses may not be the right decision to recover your money because some people may think that betting higher at once or continuing the game will help them to recover their money, but if they lose, they will lose more money. Although they may win a match in this round, nothing can confirm that they will continuously win in the next round. So the result will be losing a greater amount of money.2. Why might it be advantageous for parties in an integrative negotiation to know and share BATNAs? Because sharing and knowing BATNAs helps prevent both parties from accepting terms that are too unfavorable and rejecting terms that one side would accept. Furthermore, it also helps us in the decision-making process of whether the proposed agreement is better than our BATNA, whether to accept it, and whether to withdraw or reopen negotiations. BATNA helps increase our negotiating power. In case we have a good alternative, we will have the power to push the other party more.3. “A competitive strategy would be appropriate when the relationship between ...... middle of paper ...... ayer in the healthcare industry and a public hospital wanted the information system to increase efficiency and help reduce operating costs. Both parties have agreed on a management system. After installing the system, they discussed whether custom software was included in the deal, because a public hospital would be forced into bankruptcy if it didn't have custom software, and an IT company has no responsibility in this regard. Thus, a public hospital threatened a computer company by suggesting that if it were forced into bankruptcy, the computer company would not make progress in this attractive market, because if they managed to reach an agreement, you would be seen as our rescuer and could become the market leader. By using the threat on the benefits of the agreement, a public hospital increased the possibility of obtaining a supplementary agreement.