PON – Program on Negotiation at Harvard Law School

In dealmaking, a certain question often looms large: Should you or shouldn’t you make the first offer? Traditionally, negotiation experts advise us to sit tight and wait for the other side to float the first number. This negotiation advice is grounded in the fact that the other party’s offer may shed light on his goals and alternatives and better equip you to meet them.

If you manage people, disputes will inevitably find their way to your door. Consider the following example, where the use of mediation techniques helped untangle what seemed like an intractable conflict: The marketing VP insists that the budget cap you and your new finance VP proposed is undermining a research initiative you had previously supported.

We often view conflict in negotiation as something to be avoided at all costs. In fact, when conflict arises in negotiation, it’s often a helpful sign that we need to scrutinize our approach and air any differences we’re experiencing with the other party....

Think you have a few war stories from trying to renegotiate a bad deal? Consider this one. From the outset, many observers viewed the agreement as deeply flawed. In December 2008, Richard M. Daley, then mayor of Chicago, announced that his administration had agreed to lease the city’s parking meters to a private consortium for 75 years in exchange for nearly $1.2 billion,...

Implicit and explicit bias are common, whether or not those responsible are aware of it. A clear illustration emerged on July 14, 2015, when American Honda Finance Corporation (AHFC), the U.S. financing division of Honda, agreed to refund $24 million to minority borrowers to settle federal investigations. As reported by the Los Angeles Times, AHFC was accused of racial di...