Turn Short-Term Games Into Long-Term Games

Podcast Notes Key Takeaways Naval had a past tweet – “Negotiations are won by whoever cares less”“Negotiation is about not wanting it too badly. If you want something too badly, the other person can extract more value from you.”If you do care more about something and someone is taking advantage of you in a negotiation then your best best is to turn it from a short-term game into a long-term gameSaid another way – try to make it a repeat game (you’re converting a single-move game with a high probability of cheating on both sides into a multi-move game)Ex.: If you’re negotiating with a contractor over the price of a home renovation, you might say – “Actually, I need two different projects done. The first project we’ll do together, and based on that I’ll decide if we do the second project.”OR say – “I’m going to do this project with you, and I have three friends who want projects done who are waiting to see the outcome of this project.”

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Improve your leverage in negotiations by turning short-term relationships into long-term ones.

• Pareto optimal solutions require a trade-off to improve any criterion 0:00

• Negotiations are won by whoever cares less 0:44

• Convert single-move games to multi-move games 1:54

Transcript: http://nav.al/pareto-optimal