Max Bazerman

And you're walking down Ceylon Road, a major market street in town. Yeah. And for some reason you know a little bit about sapphires and rubies. And you're walking down the street and in the window you see a beautiful ruby ring. And your first guesstimate is that it's worth about $5,000. Okay. But you don't want to pay anywhere near that because your knowledge is rusty.

And you're walking down Ceylon Road, a major market street in town. Yeah. And for some reason you know a little bit about sapphires and rubies. And you're walking down the street and in the window you see a beautiful ruby ring. And your first guesstimate is that it's worth about $5,000. Okay. But you don't want to pay anywhere near that because your knowledge is rusty.

And you're walking down Ceylon Road, a major market street in town. Yeah. And for some reason you know a little bit about sapphires and rubies. And you're walking down the street and in the window you see a beautiful ruby ring. And your first guesstimate is that it's worth about $5,000. Okay. But you don't want to pay anywhere near that because your knowledge is rusty.

So you go in, you have a conversation with a store owner, and finally you ask to see that ring, and she pulls it out, and you ask how much would this ring cost, and she says, you know, that ring just showed up yesterday. I haven't even put a price on it. But in Thai culture, the first sale of the day brings you luck. So Shankar, make me a reasonable offer, and I'll do my best to accept it.

So you go in, you have a conversation with a store owner, and finally you ask to see that ring, and she pulls it out, and you ask how much would this ring cost, and she says, you know, that ring just showed up yesterday. I haven't even put a price on it. But in Thai culture, the first sale of the day brings you luck. So Shankar, make me a reasonable offer, and I'll do my best to accept it.

So you go in, you have a conversation with a store owner, and finally you ask to see that ring, and she pulls it out, and you ask how much would this ring cost, and she says, you know, that ring just showed up yesterday. I haven't even put a price on it. But in Thai culture, the first sale of the day brings you luck. So Shankar, make me a reasonable offer, and I'll do my best to accept it.

and you're wanting to protect yourself and get a good deal, you pull out $1,000 out of your wallet. And you say to her, I can give you $1,000, but not a penny more. And she says, OK, I'll take it. How do you feel? Well, most people feel unhappy. Yeah. Because her quick acceptance tells them something. Yes. Like perhaps that isn't a ruby, but rather a red piece of glass.

and you're wanting to protect yourself and get a good deal, you pull out $1,000 out of your wallet. And you say to her, I can give you $1,000, but not a penny more. And she says, OK, I'll take it. How do you feel? Well, most people feel unhappy. Yeah. Because her quick acceptance tells them something. Yes. Like perhaps that isn't a ruby, but rather a red piece of glass.

and you're wanting to protect yourself and get a good deal, you pull out $1,000 out of your wallet. And you say to her, I can give you $1,000, but not a penny more. And she says, OK, I'll take it. How do you feel? Well, most people feel unhappy. Yeah. Because her quick acceptance tells them something. Yes. Like perhaps that isn't a ruby, but rather a red piece of glass.

Now, perhaps before you offer $1,000, it makes sense to think about how would you feel if she accepted it? And this might tell you that I need to have the ring assessed by an independent party. before I part with my $1,000.

Now, perhaps before you offer $1,000, it makes sense to think about how would you feel if she accepted it? And this might tell you that I need to have the ring assessed by an independent party. before I part with my $1,000.

Now, perhaps before you offer $1,000, it makes sense to think about how would you feel if she accepted it? And this might tell you that I need to have the ring assessed by an independent party. before I part with my $1,000.

Now, what's intriguing about this is had she haggled with you and allowed you to pay $1,700, you might have been happier, but that wouldn't improve the quality of the glass any more than with the story where you pay $1,000. Now, this may sound remote, being about a ring in Thailand, but many of us

Now, what's intriguing about this is had she haggled with you and allowed you to pay $1,700, you might have been happier, but that wouldn't improve the quality of the glass any more than with the story where you pay $1,000. Now, this may sound remote, being about a ring in Thailand, but many of us

Now, what's intriguing about this is had she haggled with you and allowed you to pay $1,700, you might have been happier, but that wouldn't improve the quality of the glass any more than with the story where you pay $1,000. Now, this may sound remote, being about a ring in Thailand, but many of us

end up being busy when we take a job in a new city and we have limited time to look at the real estate market. So we fly in and we make what we think is a slightly low offer and the seller says, okay, well, who knew more about the market, the buyer or the seller? Yeah, the seller did. Exactly. And again, this is an example, a different kind of example of what we earlier called the winner's curse.

end up being busy when we take a job in a new city and we have limited time to look at the real estate market. So we fly in and we make what we think is a slightly low offer and the seller says, okay, well, who knew more about the market, the buyer or the seller? Yeah, the seller did. Exactly. And again, this is an example, a different kind of example of what we earlier called the winner's curse.

end up being busy when we take a job in a new city and we have limited time to look at the real estate market. So we fly in and we make what we think is a slightly low offer and the seller says, okay, well, who knew more about the market, the buyer or the seller? Yeah, the seller did. Exactly. And again, this is an example, a different kind of example of what we earlier called the winner's curse.

they're more likely to take your offer when you least want them to.

they're more likely to take your offer when you least want them to.