Negotiations and auctions are both structured economic exchanges, but the strategies used in the two are radically different. Indeed, the two are entirely different games with different sets of rules and psychological variables. Should you wait for your negotiating opponent to make the first offer? Should you set a high opening price on your eBay listing? The key to success in both negotiations and auctions is understanding the psychological processes involved, says Adam Galinsky, a professor of management and organizations at the Kellogg School of Management. That knowledge can suggest strategies that could help you gain the upper hand in these forms of economic exchange.
The rest of this article is well worth reading. Follow this link: When to Come Out Swinging – Devise the right strategy for negotiations or online auctions.