MEPX
Chapter 3 of 10All chapters
  1. 1Preparation
  2. 2Positions and interests
  3. 3Creating value
  4. 4Anchors and offers
  5. 5Handling tactics
  6. 6Listening
  7. 7Relationship and reputation
  8. 8Salary and job offers
  9. 9Closing and writing it down
  10. 10Context and culture

Chapter 3 of 10

Creating value

Before dividing it.

Logrolling

Give on what is cheap for you and valuable to them, and ask for the reverse. Differences in priorities are the raw material of a better deal for both sides.

  • Differences in risk tolerance, time preference and forecasts all create trades.
  • Contingent terms bridge genuine disagreement about the future.

Information exchange

You cannot trade what you do not know about. Sharing some priorities, carefully, usually returns more than it costs, and refusing to share guarantees a smaller deal.