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Victoria Pynchon

I mediate and arbitrate complex commercial disputes, the former with ADR Services, Inc. in Century City and the latter with...

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ADR Services, Inc.

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She Negotiates

The 33 cent wage and income gap is unacceptable and unnecessary. So is the cliché glass ceiling. Bottom line, our...

Why You Shouldn't Squeeze the Last Nickel Out of a Deal

The cost of a thing is the amount of life that you must exchange for it -- now or in the long run (Thoreau)

  • if you have an on-going relationship -- even as limited as a note payable -- squeezing the last nickel out of the deal may impair your bargaining partner's ability to perform 
  • what goes up, must come down, i.e., squeezing out the last nickel creates enemies who  none of us can afford when times are good, let alone when times are bad 
  • taking advantage of another's weaknesses tears at the social fabric
  • it makes us all more watchful and less productive
  • it doesn't actually feel good to line your pockets with the misery of others
  • sometimes the downtrodden rise up -- every couple of centuries or so, creating an entirely new order -- the generous man and woman will not be on the wrong side of that revolution
  • global warming -- think about it -- the order will change as will the countries who will be asking for favors
  • you reap what you sow (I'm pretty sure I learned this in Sunday School)
  • social relations do not exist "out there" -- they are co-created by one person's relationship with every other person -- the society you inhabit is the one you create -- if you don't want your neighbor taking your last dime, don't take his
  • collaborative effort results in greater progress than individual activity -- if you decrease trust, you impede advancement in business, the arts and science

Readers!  Can I count on you to give us all more reasons?

Comments (1)

Read through and enter the discussion by using the form at the end
Michael Webster - June 19, 2008 8:33 PM

The theoretical reason is this:

Once you have bargained up/down to the pareto line, a theoretical line in which there is no more mutual improvement, you are now in a zero sum game.

By switching into a zero sum mentality, you may just fall of pareto line into sub-optimal agreements.

Will look for some experimental data to support the view.

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