WHY NEGOTIATORS MAKE POOR DECISIONS

Michael Benoliel, Geetanjali Mukherjee and Jose Yong

Chapter 7 in Negotiate, Persuade and Create Great Deals, 2020, pp 107-120 from World Scientific Publishing Co. Pte. Ltd.

Abstract: On March 20, 2011, Deutsche Telekom AG accepted a $39 billion stock and cash purchase offer from AT&T for T-Mobile USA, Inc. The acquisition agreement included a reverse termination fee clause. It meant that if AT&T failed to close the deal, it would pay T-Mobile $4 billion in compensation, which was 10.25% of the total value of the deal, while the industry standard is only 4 to 5%. AT&T failed to anticipate the formidable resistance by regulators to the proposed acquisition, pulled out of the agreement, and was forced to pay the hefty termination fee…

Keywords: Negotiation; Influence; Persuasion; Master Negotiators; Deal-making; Anchoring; Negotiator's Decision Biases; BATNA; Interests in Negotiation; Building Negotiation Capabilities; Preparation; Power in Negotiation; Neuroscience of Negotiation; Human Evolution and Negotiation; Cultural Negotiation; Global Negotiation; Claiming Value; Creating Value; Negotiation Styles; Detecting Deception in Negotiation; Relationship and Trust Building; Negotiation for Success; Negotiation Principles; Negotiation Strategies; Negotiation Hacks; Negotiation and Dispute Resolution; Negotiation Crisis; Negotiation Diplomacy; Negotiation Essentials; Negotiation for Dummies; Negotiation Experts; International Negotiation; Essentials of Negotiation; Power of Negotiation; Negotiating Without Power; Negotiation for Executives; Negotiation Real Estate; Negotiation Skills; Negotiation Styles; Negotiation Theory and Strategy; The Art of Negotiation (search for similar items in EconPapers)
JEL-codes: D23 F51 L26 M1 (search for similar items in EconPapers)
Date: 2020
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