Knowledge at Wharton: How to Build a Better Relationship at the Bargaining Table

From Knowledge at Wharton: In a recent interview with The Wall Street Journal, powerhouse entertainment executive Shonda Rhimes said, “Never enter a negotiation you’re not willing to walk away from. If you walk in thinking, ‘I can’t walk away,’ then … you’ve already lost.” This all-or-nothing approach has become the standard for what’s considered to be success in negotiations, but it doesn’t have to be. Maurice Schweitzer, a Wharton professor of operations, information, and decisions, has written a paper with Einav Hart, management professor at George Mason University, that answers the question: When can negotiators get the best deal by not squeezing their counterpart? Schweitzer joined Knowledge at Wharton to talk about the paper titled “When Should We Care More about Relationships Than Favorable Deal Terms in Negotiations: The Economic Relevance of Relational Outcomes.” Listen to the podcast at Knowledge at Wharton.