Research: When you don’t have an alternative in a negotiation, try imagining one

Michael SCHAERER, Singapore Management University
Martin SCHWEINSBERG
Roderick I. SWAAB

Abstract

Conventional wisdom suggests that negotiators need alternatives to succeed. Alternatives give negotiators the confidence to negotiate offers more ambitiously, to push for more optimal outcomes, and to walk away from the table when needed. But negotiators often have no alternative at all. For example, a recent survey by GMAC suggests that the average MBA graduate only has a single job offer to choose from, suggesting that many MBAs have to negotiate their job offer without an alternative to fall back on.