Question

explain how the number of bargaining rounds and who makes the first offer affect the final outcome.

Answer 1

Ans.

The topic of whether to make the initial move plays on many peoples mind in negotiations process. Vulnerability aggravates the issue.
One key factor is that one needs dependable data about opponents actual bartering position, since you'll be uncertain about what offer your opponent will discover adequate and whether she'll leave the dealing table. Moreover, it's conceivable that your adversary will present deluding data trying to get a haggling advantage.

On account of the characteristic vagueness of most dealings, a few specialists propose that you should trust that the opposite side will talk first. By getting the initial offer, the contention goes, you'll increase significant data about your adversary's haggling position and pieces of information about worthy understandings. This counsel bodes well, yet it neglects to represent the ground-breaking impact that first offers have in transit individuals consider the exchange procedure.

Significant research proposes that, as a rule, moderators who make first offers end up as a winner. However there are other studies also which reveal that who makes the first move , gains in the bargaining because of the anchor effect. And anchor effect is very strong and it helps the first party that makes the move to lead the negotiation. Many studies reveal that appx 8 round of bargaining can lead satisfactory results.