Final answer:
Common negotiation outcome mistakes include leaving money on the table, the winner's curse, failing to ask, and lack of clear objectives. In the specifics like the ultimatum game, the critical element is the establishment of the offer.
Step-by-step explanation:
Several common negotiation outcome mistakes can occur during the process of bargaining or decision-making. These mistakes include:
- Leaving money on the table: This occurs when a negotiator settles for less than what could have been obtained.
- The winner's curse: This refers to a situation where the winning party in a bid wins at the expense of overpaying or winning an unfavorable deal.
- Failing to ask: A common mistake made when a negotiator does not ask for certain concessions or benefits, potentially losing out on opportunities.
- Lack clear objectives: Entering negotiations without knowing what one wants to achieve can result in a poor outcome.
In the context of a specific example, the ultimatum game highlights the importance of establishing the offer as the most critical rule, which aligns with the importance of clear objectives in a negotiation. In political bargaining, when diametrically opposed goals are present, the preference for the status quo can lead to a collapse in negotiations. Similarly, in collective decision-making, there is a bias towards the status quo which can affect the outcome. Understanding these dynamics is critical in avoiding common negotiation mistakes.