„Tit for tat“ – Trade dispute between USA, China and the EU

„Tit for tat” – a principle that one would more likely expect to find in the playground than in international trade policy. What the layman might not comprehend, is for the professional a psychological tactic using the heuristics of judgement of the opponent. In the trade dispute between the USA, China and the EU, this very negotiating strategy is used to curb “unfriendly behavior”. Donald Trump began with the increase of punitive tariffs, which triggered a chain of counteractions with other nations. A behavior that is reminiscent of the so-called “tit for tat” strategy. The USA and China in particular have thus maneuvered themselves into a prisoner’s dilemma that was now threatening to escalate. How could this have happened and is there a way out of the dilemma?

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Professional teams vs. amateur teams – Rules for the team constellation

The 2018 FIFA World Cup is finally upon us. The greatest soccer players on the planet have taken the center stage in Russia. All over the world, matches are watched by millions of fans hoping to see their teams winning the popular trophy. In the end, it is not only the fitness and technique of individual players, but the strength and cohesion of the entire team that decides which team is going to win. Learning from the World Cup means learning to win. The star is the team and everyone knows what to do, where and when. A perfectly coordinated team has the quality to beat even teams with one or two superstars, that fail to coordinate their set-up. Everyone knows their tasks and their area of responsibility. But why do many negotiating teams fail to achieve their goals? And what makes some teams succeed, and others fail?

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The last impression is the lasting impression: 4 strategies to Close a Negotiation successfully

You never get a second chance to make a first impression. We have all heard this line before. So,   true indeed. But it is the last impression we remember most. That also applies to negotiation situations. In every negotiation there are two pivotal moments. The beginning and the end of a conversation largely decide the success of the negotiation. Psychologically, the last impression is even more important than the first one. It is the last impression, which has a strong influence on someone’s judgement. Because no matter whether in a budget negotiation or when buying a new car – who cannot hold out until the end, negates his hard negotiating position. But how does one successfully end a negotiation?

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Verhandlung.blog Expanded with an English Edition

From its first birthday on, the blog’s articles will also be released in English for international readers at Negotiation-blog.eu

Berlin, 22 January 2018: For a year now, Verhandlung.blog-author Thorsten Hofmann analyses and comments on current political and economic negotiations. For its first anniversary, the project becomes international: from now on, all articles will additionally be published in English at Negotiation-blog.eu.

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Confidentiality of German grand coalition negotiations. Thorsten Hofmann in the Handelsblatt.

No twitter, no balcony, no media. Nothing of the grand coalition talks between CDU, CSU and SPD was supposed to be leaked to the public. Yet the agreed confidentiality did not last for long. Thorsten Hofmann is not surprised at all. In his interview with Handelsblatt, the negotiation expert explains, why the toughest opponent is always oneself.

Read the full article here (in German).

Too many cooks spoil the broth. Negotiating the Jamaica-coalition

The 24th October is probably a day which is highlighted in a deep red in many calendars of political stakeholders in Berlin. At 11:00 o’clock, Wolfgang Schäuble – designated new presiding officer of the German parliament – is scheduled to open the inaugural meeting for the upcoming 19th legislative period. At least that’s currently the plan. Whether the actual coalition negotiations will have proceeded accordingly or will have started at all by that time remains to be seen.                                              

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Germany’s Game Theorists Puzzle over Pyongyang. Thorsten Hofmann in the Handelsblatt Global Edition.

North Korea and the USA rattle their saber, while the Brexit negotiations have reached an impasse. Is Donald Trump a person who loses control of his own emotions and does the EU have supremacy in the Brexit negotiations? Together with colleagues from Stanford and Berlin Universities, negotiation expert Thorsten Hofmann analyses both tactics from the perspective of game theory.

Read the full article here.

Learn more about the practical application of game theory, especially the theory on brinkmanship in negotiations, as well as other negotiation tactics in one of the Center for Negotiation’ negotiation seminars