Monica Wadhwa and Krishna Savani, writing in MIT Sloan Management Review, examine how adopting a choice mindset can reduce anchoring in negotiations. Anchoring occurs when an initial offer becomes a psychological reference point that limits the range of subsequent counteroffers. Drawing on seven experimental studies with U.S. participants, the authors demonstrate that a brief reminder of one’s freedom to choose encourages negotiators to consider a broader range of alternatives and move farther from the initial offer. The results indicate that this effect is cognitive rather than motivational, as the reminder expands the available decision space without increasing competitiveness or self-interest. However, the effect disappears under conditions of distraction or high cognitive load. The findings underscore the importance of focused attention and deliberate reflection during negotiations. By pausing, considering several defensible counteroffers, and relying on independent benchmarks, negotiators can reduce the influence of the opposing party’s opening offer and establish terms based on their own strategic objectives.
The Trap That Skilled Negotiators Miss
