Negotation 101

Any time a negotiation takes place, so does anchoring. When a prospective
employer asks how much you made in your prior job, your answer typically anchors
the employer’s offer. (Remember this when you negotiate your salary,
but set the anchor only as high as you realistically can.) Finally, the more
precise your anchor, the smaller the adjustment. Some research suggests
people think of making an adjustment after an anchor is set as rounding off
a number. If you suggest a target salary of $55,000, your boss will consider
$50,000 to $60,000 a reasonable range for negotiation, but if you mention
$55,650, your boss is more likely to consider $55,000 to $56,000 the range of
likely values

Robbins, S. P., & Judge, T. (2013). Organizational behavior. Upper Saddle River, N.J: Pearson/Prentice Hall.

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