Negotiation Management, Analysis and Support
Distributive Negotiations		12
Single issue negotiations

Buyer's beliefs

Buyer belief that the seller's reservation value is $18,000. The seller's opening is $38,000.

This opening causes that the alternatives between $38,000 and $40,000 became irrelevant; the absolutely lowest possible price for the buyer is $38,000.

 

What is the probability that the seller’s reservation value is less than $24,000? Greater than $24,000?

Probability (Seller’s reservation value is less than $24,000) =
               = (24,000-18,000)/(38,000-18,000) = 6/20 = .3

30% chance that the seller will sell the producfor $24,000 or less.

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