Module 4

Anchors and first offers: opening with a reason and reading the other side’s

The first number spoken in a negotiation does more than start the conversation. It becomes a reference point, and later numbers tend to be measured from it. This effect, called anchoring, has been shown in many studies, including with experienced professionals who believed they were immune. It makes the opening offer one of the most consequential moves in a negotiation, and it makes the other side’s opening a hazard: if you let it set your frame, you will negotiate from where they put you. It does not follow that the highest or lowest number always wins. An opening that is too extreme can destroy credibility, end the discussion or invite an equally extreme reply. The skill is in choosing an opening that is ambitious and defensible, supporting it with reasons, and answering the other side’s opening in a way that resets the frame without ignoring it. This module sets out what is known about anchoring, how to prepare a first offer with the data from the earlier modules, and how to respond to an anchor you do not accept. It draws no conclusions about any particular person: anchoring is a tendency, and the research shows averages, not certainties.

General education on using data in negotiation, with invented companies, people, disputes and figures. It states common practice in simplified form and does not describe any one country's law or professional rules, which differ and change; rules on candour, misrepresentation, confidentiality and settlement in particular vary. The tools organise your own estimates and cannot predict the result of any real negotiation. It is not legal advice, and it does not replace advice from a qualified lawyer on a real matter.