Persuasion Persuasion: The Hidden Forces that Influence Negotiations represents the first book of its kind to package and present persuasion principles in an innovative, international, and interdisciplinary fashion. This easy-to-understand book is the culmination of seminal research findings spanning across decades and disciplines – psychology, philosophy, negotiations, decision-making, logic, law, and economics, among others – from leading experts around the world. P ersuasion provides a series of short, simple-to-use intellectual tools to go above and beyond merely describing “what to think” – but “how to think” in a persuasion, influence, and negotiation context – across a diverse array of disciplines, sectors, and situations from boardrooms to classrooms for the twenty-first century. Jasper Kim, JD/MBA, is a lawyer, former investment banker, director of the Center for Conflict Management, and faculty at Ewha Womans University. He was a visiting scholar at Harvard University and Stanford University. Jasper Kim received negotiation training at Harvard Law School and graduate economics training at the London School of Economics. He has published in dozens of academic journals, consulted and trained leading global organizations, and has been featured in major media outlets, including the BBC, Bloomberg, CNBC, CNN, Forbes, and the W all Street Journal . Learn more at jasperkim.com. Routledge Focus on Business and Management T he fields of business and management have grown exponentially as areas of research and education. This growth presents challenges for readers try- ing to keep up with the latest important insights. Routledge Focus on Busi- ness and Management presents small books on big topics and how they intersect with the world of business research. I ndividually, each title in the series provides coverage of a key academic topic, whilst collectively, the series forms a comprehensive collection across the business disciplines. Management Accounting for Beginners Nicholas Apostolides Stories for Management Success The Power of Talk in Organizations David Collins How to Resolve Conflict in Organizations The Power of People Models and Procedure Annamaria Garden Branding and Positioning in Base of Pyramid Markets in Africa Innovative Approaches Charles Blankson, Stanley Coffie and Joseph Darmoe Persuasion The Hidden Forces that Influence Negotiations Jasper Kim For more information about this series, please visit: www.routledge.com/ Routledge-Focus-on-Business-and-Management/book-series/FBM Persuasion The Hidden Forces that Influence Negotiations Jasper Kim First published 2018 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2018 Jasper Kim The right of Jasper Kim to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice : Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Kim, Jasper, author. Title: Persuasion : the hidden forces that influence negotiations / Jasper Kim. Description: Abingdon, Oxon ; New York, NY : Routledge, 2018. | Series: Routledge focus on classical studies | Includes bibliographical references and index. Identifiers: LCCN 2018002273 | ISBN 9780815361954 (hardback) | ISBN 9781351113717 (e-book) Subjects: LCSH: Persuasion (Psychology) | Negotiation. Classification: LCC BF637.P4 K476 2018 | DDC 153.8/52—dc23 LC record available at https://lccn.loc.gov/2018002273 ISBN: 978-0-8153-6195-4 (hbk) ISBN: 978-1-351-11371-7 (ebk) Typeset in Times by Apex CoVantage, LLC “How quick come the reasons for approving what we like” Persuasion , Jane Austen This book serves to empower ordinary people to do the extraordinary. Contents Foreword viii PART I Behavioralists: pride and prejudice 1 1 Influences: invisible influences of persuasion 3 2 Judgments: surprising shortcuts toward judgments 13 3 Biases: the blind side of hidden biases 23 4 Perceptions: how perceptions bend realities 33 PART II Rationalists: sense and sensibility 45 5 Strategies: knowing when to keep calm and carry on 47 6 Expectations: how to value great expectations 58 7 Elements: creative ways to supersize the pie 79 8 Reasonings: making sense of nonsensical statements 88 Index 95 Foreword People use persuasion every day. Persuasion occurs everywhere and anywhere – often hidden and invisible – from boardrooms to classrooms. It is the hidden ability to influence, induce, and incentivize people and situations. Persuasion: The Hidden Forces That Influence Negotiations represents the first book of its kind to package and present persuasion principles in an innova- tive, international, and interdisciplinary fashion. This easy-to-understand book is the culmination of seminal research findings spanning across decades and disciplines – psychology, philosophy, negotiations, decision-making, logic, law, and economics, and others – from leading experts around the world. Persuasion is presented in the form of eight hidden forces. Some hidden forces are “behavioral” hidden forces (based on our psychological influ- ences, judgments, biases, and perceptions). The remaining hidden forces are “rational” hidden forces (based on our cognitive strategies, expectations, elements, and reasonings). These two big-picture hidden forces – behavioral and rational – oscillate between being solitary or complementary depending on the individual and context encountered. Individually and collectively, persuasion’s hidden forces influence people and situations. Much of the past academic literature in the field of persuasion and related sciences has presumed that individuals are rational choice actors. But does this assumption always hold true? Do individuals always use and apply rational choice – dutifully devoid of the seeming whims of emotion and other behavioral elements – in decision-making processes, actions, and outcomes? U nder rational choice theory (RCT) – colloquially referred to in this text as “Rationalists” – within and even beyond a persuasion context, individuals are always assumed to make informed decisions. Such decisions are presumed to have been made only after careful thought and dutiful deliberation of the probabilistic outcomes of all possible events – while internally weighing a mental scale that intimately calibrates the relative costs and benefits of each and every particular outcome – using all available information. From such Foreword ix “Rationalist” lens, the actions of individuals are always “rational” in that indi- viduals are in a constant pursuit of transitive logic that culminates in a choice or series of choices that serve to maximize utility. The concept of “utils” or “widgets” – using parlance from an imagined academic marketplace mind game composed of hypothetical actors, goods, and services – in the domi- nant fields of economics, political science, sociology, philosophy, and others has trickled down into other disciplines, including the field of persuasion. The Rationalists represent a dominant force in both academic and practitioner circles, which include heavyweight academicians such as Gary Becker of the University of Chicago, Milton Friedman of Stanford University, and Patrick Dunleavy of The London School of Economics and Political Science (LSE). I n a rebuttal to the Rationalists, a “behavioral” school of thought – colloquially referred to in this text as “Behavioralists” – has emerged that questions a bedrock foundation underlying much of the RCT-based aca- demic literature. The behavioral school of thought essentially argues that individuals do not a lways act in the mode of h omo economicus . Rather, the mind, including well-informed bright and beautiful minds, often take mental shortcuts to make complex and even simpler decisions rather than undergo the laborious process of finely calibrated, constant calculations and analyses to render each decision within the context of an individual’s decision-making calculus. Such mental shortcuts – more formally referred to as “heuristics” – represent a means by which to cut through the seemingly daunting deluge of data that barrage individuals on a daily basis. The Behavioralists include scholars such as Robert Shiller of Yale University, Richard Thaler of the University of Chicago, and Daniel Kahneman of Princeton University. R ather than persuade the reader what to think, the objective of this book, Persuasion , is to explain and analyze the basic bedrock tenets underlying both schools of thought – the Behavioralists and the Rationalists – within the overarching rubric relating to the field of persuasion. This methodology allows the reader to decide when each model works, and fails to work, in theory and practice. In other words, this book explains not just how indi- viduals “ought” to behave as rational choice thinkers, but also how indi- viduals “actually” do behave in certain, contextual circumstances because of behavioral and rational hidden forces. S uch two-tiered conceptual approach, including both Behavioralist and Rationalist frameworks, is unique and needed in our modern twenty-first century era of increasing complexity. After all, the world today is no longer composed of stark “black or white” binary realities, but rather, varying and discrete shades of gray. Such shades intricately or indirectly involve issues pertaining to peace, conflict, deal-making, and many other critical issues in between. In a world ranging from full trust to zero trust – from perfect infor- mation to highly imperfect information, and symmetrical power dynamics