Negotiations – Making the First Move

HBS has a very interesting piece on negotiations.

Because of the inherent ambiguity of most negotiations, some experts suggest that you should wait for the other side to speak first. By receiving the opening offer, the argument goes, you'll gain valuable information about your opponent's bargaining position and clues about acceptable agreements. This advice makes intuitive sense, but it fails to account for the powerful effect that first offers have on the way people think about the negotiation process. Substantial psychological research suggests that, more often than not, negotiators who make first offers come out ahead. In this article, I explain when and how first offers affect final outcomes and advise you on how to make and receive opening offers.

Another way that this is relevant – stock trading is a form of negotiation. Do anchors play a part? You bet. Value investors try to make money by avoiding that bias.