A few years ago, a team of behavioral scientists led by Shirli Kopelman of the University of Michigan tested this proposition by simulating a series of negotiations. In one experiment, they presented their participants, executives who were pursuing MBAs, with the following scenario. You’re planning a wedding. Several weeks ago, you made provisional arrangements with a catering company that had provided a good-faith estimate of $14,000 for its services. Now you are about to meet the caterer’s business manager, who’s come bearing bad news. Because of market fluctuations, the estimate has
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