Final answer:
The incorrect observation about interests is that a negotiator's positions are more important than their interests. Interests actually play a crucial role in decision-making as they are linked to core human needs and values, and people can consider the interests of others as well as their own.
Step-by-step explanation:
One of the observations on interest that is NOT true is that a negotiator's positions are more important than their interests. In negotiations and decision-making, interests often stem from deeply rooted human needs or values and are considered more important than the positions that are explicitly stated. Positions can be thought of as specific demands or the surface articulations of these underlying interests. For example, asking for a raise might be the position, but the interest behind it could be financial security or recognition of value within a company. In society, individuals might act based on self-interest economically, but also consider other's interests in different contexts such as volunteering or donating to charity. Thus, the statement about the dominance of certain interests overestimates the importance of positions and undermines the complexity of how interests are formulated and prioritized.