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We are not specially fond of losing. Everyone likes a success and it is essential for us all to be on the winning side. As a matter of fact, it is vital for us to be on the winning side that research signifies that on average we have an incredibly an insightful approach to overcoming possible risks.

In an area of study called Prospect Theory, Kahneman and Tversky looked into the apparent flaws and contradictions in individual habits. They identified that research individuals when offered an alternative prepared in one way might present risk-averse conduct but when given basically the same solution formulated in another way the same research subjects might display risk seeking methods.

A key result of the analysis done by Kahneman and Tversky is that they identified that people's behaviour towards challenges related to possible gains are often very different from their behaviour towards risks connected with probable losses.

For instance, when people are given an option between getting $1000 with certainty or getting a 50% chance of getting $2500, they will often well select the certain $1000 rather than the uncertain possibility of getting $2500 even though the mathematical expectation of the uncertain option is $2500. This is a completely reasonable mindset that is described as risk aversion.

But Kahneman and Tversky also identified that the same individuals when challenged with a definite loss of $1000 compared to a 50% chance of no loss or a definite loss of $2500 do often select the risky alternative. This is referred to as risk seeking behaviour.

Exactly what this means for you in terms of your business negotiation or negotiation training is the fact that it is wise to tell your counterparts the things they stand to do away with when they do not move in the direction that you are recommending. It is definitely a good idea to notify your counterparts what they stand to achieve by moving in your direction but the power of your stance will be improved if you could increase the benefits the particular things that they will fall short on if they do not move in your direction.

This type of loss framing is strongest if it is coupled with the Scarcity concept of influence which states that we assign more worth to those things that are significantly less obtainable. We should therefore concentrate on those things that are specifically associated with our own suggestions and in addition to pointing out the benefits associated with going in our direction we should also explain the particular, unique things that our counterpart might stand to forfeit when they don't move in our direction.

Making use of negotiation skills such as loss framing to your advantage is an excellent method that you can apply the concept of losing to support you to win.

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