Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator from Coursera

This course will help you be a better negotiator. Unlike many negotiation courses, we develop a framework for analyzing and shaping negotiations. This framework will allow you to make principled arguments that persuade others. It will allow you to see beneath the surface of apparent conflicts to uncover the underlying interests. You will leave the course better able to predict, interpret, and shape the behavior of those you face in competitive situations.

In this course, you will have several opportunities to negotiate with other students using case studies based on common situations in business and in life. You can get feedback on your performance and compare what you did to how others approached the same scenario. The cases also provide a setting to discuss a wide-ranging set of topics including preparing for a negotiation, making ultimatums, avoiding regret, expanding the pie, and dealing with someone who has a very different perspective on the world. Advanced topics include negotiating when you have no power, negotiating over email, and the role of gender differences in negotiation. To close out the course, we will hear insights from three negotiation experts: Linda Babcock, Herb Cohen, and John McCall MacBain. Enjoy.

What's inside

Syllabus

Introduction / What is the Pie?

I've promised that this course will help you be a better, smarter, more strategic negotiator. To do that, we begin by laying a foundation for negotiation, a theory of the “pie.” Over the years, I’ve discovered even the most experienced negotiators tend to lack a framework that grounds their approach to negotiation. While some folks try to bully their way to a larger share, most people make arguments that sound fair to them. But what sounds fair to them often doesn’t sound fair to the other side. Their criteria for what's fair may be biased in their favor. The theory of the pie is useful because it doesn’t depend on which side you are taking. It provides principles that will change the way you approach negotiations—in this course and in life. It will allow you to make arguments that persuade others. That’s why I am teaching you about it first.

Negotiation Caselets

You've got the theory. Now let's use it. I'll show how the pie framework applies to some mini cases, or caselets. The Merger Case considers how the synergy gains from a merger will be shared by the two parties. While this is still a stylized case, you'll see how it directly applies to some very real merger negotiations. "Start By Asking" shares a salary negotiation done by one of my students and provides a chance to introduce the idea of one's reservation value, or BATNA. You'll also learn why it's best to never say no. We end the week with our first interactive exercise—the Ultimatum Game. Here you have an opportunity to negotiate with your fellow classmates and with me. You also have the first mastery quiz for the course. I've tried to make it as much a learning opportunity as it is a test of your ability to apply the concepts presented.

Zincit Case

The Zincit case provides an opportunity to discuss a wide-ranging set of topics including how to prepare for a negotiation, making ultimatums, alternating removals, avoiding regret, expanding the pie, and dealing with someone who has a very different perspective on the world.

Outpsider Case

Our second case study is more difficult. Here each party has some hidden information to which the other is not privy. Much like real life, neither party has enough information to figure out a solution on his or her own. Sharing and revealing information thus becomes a critical part of the negotiation. What should each party share? What should they keep to themselves? This case provides an opportunity to discuss critical questions around revealing information, along with some negotiation tactics: who should make the first offer, what the first offer should look like, and how you should respond to threats.

Advanced Topics

This module is a collection of short lessons. We cover everything from negotiating when you have no power to negotiating over email. There is a test-taking detour, showing how the game theory approach we use in negotiation can help you (or your kids) do better on standardized tests. I end with some key lessons I learned from a taxi ride that went the wrong way.

Linda Babcock: Ask for It

In this module, we are joined by Professor Linda Babcock, the James M. Walton Professor of Economics at Carnegie-Mellon University and a world-renowned expert on negotiation. Her specialty is the role of gender differences in negotiation. She is the coauthor of many well-cited journal articles and two award-winning books: Women Don’t Ask and Ask for It. In a series of presentations, Linda puts some dollars and cents on the value of asking, shows you how to prepare and then how to ask. The value of this material isn’t just for women. We can all learn how to better prepare for a negotiation, be soft in style and hard in substance, and aim high without crashing. As a bonus section, Ayana Ledford, the Founding Executive Director of PROGRESS at Carnegie-Mellon University, explains how they are teaching negotiation to teens as a life skill.

Herb Cohen: You Can Negotiate Anything

In this module, we are joined by Herb Cohen. Herb is a negotiation sensei, and we are fortunate to have his insights. He is the author of two classics in negotiation: You Can Negotiate Anything and Negotiate This!

John McCall MacBain: The Consummate Dealmaker

In 1987, John purchased a classified advertising magazine in Montreal called Auto Hebdo, the first of what would become a worldwide portfolio of Auto Trader, Buy and Sell and other classified ad papers. Over the next twenty years, he purchased some 500 papers and websites literally all around the world -- China, Russia, Poland, Australia, Columbia, Sweden, Hungary, Italy, Canada, Argentina, Brazil. He sold the business, bought it back, took it public, and then ultimately maximized shareholder value by selling off the whole business in five pieces. He is now a philanthropist focused on education. I've known John for 35 years, ever since we were classmates at Oxford. And I had a front row seat to his dealmaking as I served on the board of his company, Trader Classified Media. His papers were all about buying and selling, but when it comes to buying and selling, there's no one better. He exemplifies principled negotiation. You are in for a special treat.

Acknowledgments and Further Readings

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers negotiation principles that can be applied to both personal and professional situations

Led by Barry Nalebuff, a renowned professor and author in the field of negotiation

Provides a framework for analyzing and shaping negotiations, improving participants' persuasive abilities

Includes opportunities for interactive negotiation exercises with classmates, allowing for practical application of concepts

Focuses on uncovering underlying interests to facilitate mutually beneficial agreements

Provides a strong foundation for developing effective negotiation skills, from preparation to post-negotiation strategies

Reviews summary

Principled, persuasive negotiation

Yale University’s negotiation course is widely recognized for its comprehensiveness and practicality, designed to equip learners with the skills necessary to negotiate effectively. Students say the course provides a strong foundation in the principles and tactics of negotiation, with a focus on fairness and mutual benefit. The interactive format, including peer-reviewed assignments and live negotiation simulations, provides ample opportunities to apply these principles in practice. Taught by the renowned Professor Barry Nalebuff, the course covers a range of topics, from the basics of negotiation to advanced strategies and techniques. Nalebuff's clear and engaging teaching style, along with the use of animations and real-world examples, makes the complex concepts easy to understand. The course also features guest lectures from leading negotiation experts, offering diverse perspectives and insights. Students particularly appreciate the emphasis on principled negotiation, which encourages finding mutually beneficial outcomes while maintaining fairness and integrity. The course materials provide a valuable framework for preparing for and conducting negotiations, whether in business, personal, or diplomatic settings. While the course includes mathematical concepts, students generally find them accessible, even those without a strong background. The course emphasizes applying these concepts to real-world situations rather than memorizing formulas. The assignments and simulations allow learners to test their understanding and receive feedback, building confidence in their negotiation abilities. Overall, students highly recommend this course for anyone interested in improving their negotiation skills, regardless of their experience level or background. They praise the course's engaging content, practical approach, and the opportunity to learn from experts in the field.

Professor Barry Nalebuff is a renowned negotiation expert and a highly effective instructor, known for his clear and engaging teaching style.

"This was an excellent course. Professor Barry Nalebuff was a great speaker, who was not only entertaining but very informative. The class was not easy, but it was well worth the time and effort I put into it."

"Excellent course! Highly recommend for anyone who negotiates as part of their professional role, and also a great course for personal needs (buying a house, car, job offer negotiations, etc.). Barry is an engaging professor and has several excellent guest speakers as well."

The course is highly practical, with a focus on applying the principles and tactics of negotiation to real-world situations.

"The course is challenging one. You need to understand theory of game, statistics etc. The instructor gives his best to explain the theory with the practise. In general its a very good and refreshing one. It gives a new perspective to negotiation with real math terms."

"I’ve been negotiating in Real Estate for many years, and through this course was enlightened to new and useful approaches I would have never discovered on my own. I even learned how to better explain the strategies I already practiced to my clients. Great course."

The course focuses on principled negotiation, which emphasizes finding mutually beneficial outcomes while maintaining fairness and integrity.

"I really liked this course. It exceeded my expectations because not only has my mind opened up to many more possibilities when negotiating, I also feel so much more confident about my ability than before I started the course. I'm no longer intimidated by needing to negotiate."

"This course has changed my outlook on negotiations and conflicts: I used to see them as a competitive game and have now switched to a collaborative problem solving approach. I now actually look forward to negotiating and creating added value both in my professional as well as private life."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator with these activities:

Review Negotiation Concepts from Previous Coursework or Experience

Show steps

Refresh your knowledge of essential negotiation concepts to strengthen your foundation.

Browse courses on Conflict Resolution

Show steps

Review notes or materials from previous negotiation courses or workshops.
Recall and practice basic negotiation techniques.
Discuss negotiation principles with a peer or colleague.

Read 'Getting to Yes' by Roger Fisher and William Ury

Show steps

Gain insights into the foundational principles of negotiation from a highly acclaimed book by experts in the field.

View Getting to Yes: Negotiating Agreement Without... on Amazon

Show steps

Read the book thoroughly.
Take notes and highlight key concepts.
Discuss the book's ideas with classmates or colleagues.

Attend a Negotiation Workshop or Seminar

Show steps

Enhance your negotiation skills by attending a specialized workshop or seminar led by industry experts.

Browse courses on Conflict Resolution

Show steps

Research and identify relevant negotiation workshops or seminars.
Register and attend the workshop or seminar.
Actively participate in the discussions and exercises.
Implement the strategies and techniques learned in the workshop in your own negotiations.

Five other activities

Expand to see all activities and additional details

Show all eight activities

Learn Negotiation Strategies from Real-World Cases

Show steps

Expand your understanding of negotiation principles by analyzing and discussing real-world case studies.

Browse courses on Negotiation Strategies

Show steps

Review the case study provided by the instructor.
Identify the key issues and challenges in the case.
Research and analyze the case to develop negotiation strategies.
Discuss the case with classmates in a guided tutorial session led by the instructor.

Develop a Negotiation Plan for a Real-Life Situation

Show steps

Apply the principles learned in the course to a real-life negotiation you are involved in or plan to engage in.

Show steps

Identify a specific negotiation situation you are facing.
Define your goals and objectives for the negotiation.
Research and gather information about the other party and the subject matter of the negotiation.
Develop a negotiation strategy and plan, including your opening offer, bottom line, and concessions.
Present your negotiation plan to a peer or mentor for feedback and refinement.

Negotiation Role-Playing

Show steps

Reinforce negotiation techniques by practicing role-playing different scenarios.

Show steps

Identify a negotiation scenario from the course material.
Assign roles to participants.
Prepare for the negotiation by gathering information and developing a strategy.
Role-play the negotiation, applying the principles learned in the course.
Reflect on the negotiation, identify areas for improvement, and discuss alternative approaches.

Negotiation Simulation Project

Show steps

Engage in a simulated negotiation to test and develop your skills in a realistic environment.

Browse courses on Simulation

Show steps

Form a team with classmates.
Choose a negotiation scenario and define the roles each team member will play.
Research and prepare for the negotiation.
Conduct the simulated negotiation.
Reflect on the negotiation, evaluate your performance, and identify areas for improvement.

Volunteer as a Mediator or Facilitator

Show steps

Gain practical experience in negotiation and conflict resolution by volunteering in a mediation or facilitation role.

Browse courses on Mediation

Show steps

Contact local community organizations or mediation centers to inquire about volunteer opportunities.
Receive training in mediation or facilitation techniques.
Participate in mediation or facilitation sessions under the guidance of experienced professionals.

Career center

Learners who complete Introduction to Negotiation: A Strategic Playbook for Becoming a Principled and Persuasive Negotiator will develop knowledge and skills that may be useful to these careers:

Negotiator

Negotiators are experts in the art of negotiation, and they use their skills to resolve conflicts and reach agreements that benefit all parties involved. This course will help you develop the skills you need to be a successful negotiator, including the ability to identify and understand the interests of others, to develop and articulate your own interests, and to find creative solutions that meet the needs of everyone involved. If you're interested in a career as a negotiator, this course is a great place to start.

See salaries and explore the career path for Negotiator

Business Development Manager

Business development managers are responsible for identifying and developing new business opportunities for their companies. They use their negotiation skills to build relationships with potential customers and clients, and to close deals that benefit both parties. This course will help you develop the skills you need to be a successful business development manager, including the ability to identify and qualify leads, to develop and deliver effective sales presentations, and to close deals that meet the needs of your customers.

See salaries and explore the career path for Business Development Manager

Sales Manager

Sales managers are responsible for leading and motivating sales teams to achieve their goals. They use their negotiation skills to build relationships with customers and clients, to close deals, and to resolve conflicts. This course will help you develop the skills you need to be a successful sales manager, including the ability to set clear goals for your team, to motivate and inspire your team to achieve those goals, and to resolve conflicts that may arise within your team.

See salaries and explore the career path for Sales Manager

Project Manager

Project managers are responsible for planning, executing, and closing projects. They use their negotiation skills to manage relationships with stakeholders, to resolve conflicts, and to ensure that projects are completed on time and within budget. This course will help you develop the skills you need to be a successful project manager, including the ability to plan and execute projects, to manage relationships with stakeholders, and to resolve conflicts that may arise during the course of a project.

See salaries and explore the career path for Project Manager

Human Resources Manager

Human resources managers are responsible for managing the human resources function of an organization. They use their negotiation skills to resolve conflicts between employees, to negotiate contracts with unions, and to develop and implement HR policies. This course will help you develop the skills you need to be a successful human resources manager, including the ability to manage employee relations, to negotiate contracts, and to develop and implement HR policies.

See salaries and explore the career path for Human Resources Manager

Lawyer

Lawyers use their negotiation skills to represent their clients in court and to negotiate settlements. This course will help you develop the skills you need to be a successful lawyer, including the ability to research and analyze legal issues, to write and argue legal briefs, and to negotiate settlements that benefit your clients.

See salaries and explore the career path for Lawyer

Mediator

Mediators are neutral third parties who help disputing parties to reach agreements. They use their negotiation skills to facilitate communication between the parties, to help them understand each other's perspectives, and to develop creative solutions that meet the needs of everyone involved. This course will help you develop the skills you need to be a successful mediator, including the ability to facilitate communication, to help disputing parties understand each other's perspectives, and to develop creative solutions that meet the needs of everyone involved.

See salaries and explore the career path for Mediator

Arbitrator

Arbitrators are neutral third parties who make binding decisions in disputes. They use their negotiation skills to hear evidence from both parties, to weigh the evidence, and to make decisions that are fair and impartial. This course will help you develop the skills you need to be a successful arbitrator, including the ability to hear evidence, to weigh the evidence, and to make decisions that are fair and impartial.

See salaries and explore the career path for Arbitrator

Consultant

Consultants provide advice and guidance to businesses and organizations. They use their negotiation skills to help their clients solve problems, to develop strategies, and to achieve their goals. This course will help you develop the skills you need to be a successful consultant, including the ability to analyze problems, to develop solutions, and to communicate your findings to clients.

See salaries and explore the career path for Consultant

Entrepreneur

Entrepreneurs start and run their own businesses. They use their negotiation skills to raise capital, to develop partnerships, and to close deals. This course will help you develop the skills you need to be a successful entrepreneur, including the ability to identify and evaluate business opportunities, to develop business plans, and to raise capital.

See salaries and explore the career path for Entrepreneur

Politician

Politicians use their negotiation skills to build consensus, to pass legislation, and to represent the interests of their constituents. This course will help you develop the skills you need to be a successful politician, including the ability to build relationships, to communicate effectively, and to negotiate compromises.

See salaries and explore the career path for Politician

Journalist

Reporters negotiate deals with sources, hunt for leads, and create content. The course may help you think like a journalist would and convince people to share information. This course may be useful for those looking to go into journalism.

See salaries and explore the career path for Journalist

Teacher

Teachers negotiate deals with students and parents, create lesson plans, and design curriculum. The course may help you think like a teacher would and convince students to do their work. This course may be useful for those looking to go into teaching.

See salaries and explore the career path for Teacher

Social Worker

Social workers negotiate deals with clients, create treatment plans, and design programs. The course may help you think like a social worker would and convince people to change their behavior. This course may be useful for those looking to go into social work.

See salaries and explore the career path for Social Worker

Doctor

Doctors negotiate deals with patients, create treatment plans, and design surgeries. The course may help you think like a doctor would and convince patients to follow their advice. This course may be useful for those looking to go into medicine.

See salaries and explore the career path for Doctor