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Content: judgment in managerial decision making
Author: Max H. Bazerman & Don A. Moore
Abstract: chapter 10 making rational decisions in negotiations
This chapter outlines a framework for thinking rationally in two party negotiation context. Previous five chapters focus on individual decision making rationally. System 1 and system 2 are mentioned, system 1 is in instinctive decision making process which is easy and fast, while system 2 is logic and rational thinking which requires critical thinking. This chapter provides a structure for system 2 thinking in negotiated environments. The best-developed component of this economic school of thought is game theory. The advantage of game theory is twofold which are firstly game theory replies on the ability to completely describe all the options and associated outcomes for every possible combination of moves in the given situation and secondly it requires all the players consistently act in a rational manner. Best Alternative to a Negotiated Agreement.
Learning: assess all components of all the information before entering any important bargaining situation.
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