People are not specially fond of losing. Everyone really likes a winner and it is important for us all to be on the winning side. As a matter of fact, it is essential for individuals to be on the winning side that research signifies that normally we have an incredibly a fascinating method to dealing with potential risks.
In an area of research known as Prospect Theory, Kahneman and Tversky looked into the likely flaws and contradictions in individual conduct. They found that research subjects when offered an option introduced in one way might present cautious conduct but when given fundamentally the same choice formulated in a different way the same research subjects might display risk seeking behaviour.
An important result of the analysis performed by Kahneman and Tversky is that they identified that people's behaviour towards threats associated with potential gains can be very unlike their behaviour when it comes to risks connected with probable deficits.
For example, when subjects are given a choice between getting $1000 with confidence or getting a 50% chance for getting $2500, they will often well select the guaranteed $1000 in preference to the uncertain chance of getting $2500 even though the mathematical expectation of the uncertain option is $2500. This is a perfectly sensible mindset that is referred to as risk aversion.
But Kahneman and Tversky also identified that the same individuals when presented with a certain loss of $1000 versus a 50% chance of no loss or a certain loss of $2500 do frequently select the risky option. This is referred to as risk seeking behaviour.
Exactly what it implies for you in the context of your business negotiation or negotiation training is that it is recommended that you explain to your counterparts the things they bear to do away with when they do not move the way that you are suggesting. It is always a good idea to tell your counterparts the things they stand to achieve by shifting in your direction but the power of your reason will likely be enhanced if you could add to the benefits the specific things that they are going to fall short on if they do not shift in your direction.
This type of loss framing is strongest when it is combined with the Scarcity principle of influence which states that we associate much more worth to those things which are significantly less obtainable. We should thereby focus on those things that are uniquely associated with our own arguments and in addition to pointing out the advantages associated with going in our direction we should always also explain the particular, unique things that our counterpart may stand to lose if they don't move in our direction.
Using negotiation skills such as loss framing to your benefit is an excellent method which you could apply the concept of losing to support you to succeed.
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