Cain: The negotiation pie is only unique surplus minus friction and alternatives
Daylian Cain · Daylian Cain – Master Class in Negotiations (Capital Allocators, EP.138) · May 18, 2020 · at 27:17
Yale School of Management professor Daylian Cain discusses the 'Theory of the Pie' framework for negotiating against counterparties with strong outside options.
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“Yeah, so then the pie is really 10, because I create 30, but you can get 20 without me. And then we have to look at my alternatives and then transaction costs of getting out of this deal and going chasing the other deal. And is it a certain 20 or an uncertain 20? And is it a painless 20 or a painful 20? And so all those things should be quantified and hopefully in your favor.”
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