Cain: Contingent agreements neutralize emotional disputes over differing future forecasts
Daylian Cain · Daylian Cain – Master Class in Negotiations (Capital Allocators, EP.138) · May 18, 2020 · at 35:18
Yale School of Management professor Daylian Cain discusses negotiation dynamics with host Ted Seides, specifically how investors and founders can navigate clashing predictions about company valuation.
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“What's really great about the contingent agreement is it can cool the emotions thusly. We don't have to fight about the future. We just agree on what happens if you're right, and we agree on what happens if I'm right, and if you structure the contract sensibly, now we don't have to, well, I'm happy to lose now. And so you can structure a lot of emotions out of smart contracts.”
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