On first offers and impasses with Martin Schweinsberg
In this episode, we focus on first offers and negotiation impasses with Martin Schweinsberg, Associate Professor of Organizational Behavior at ESMT Berlin. Drawing from his cutting-edge research, Martin reveals the science behind why first offers set the tone for negotiations, how they shape expectations, and whether making the first move truly gives you an advantage. But what happens when negotiations hit a deadlock? Martin shares his insights on why impasses occur, the psychological traps that keep us stuck, and proven strategies to break through stalemates—whether in business deals, salary negotiations, or personal conflicts. Interestingly, there’s a strong link between first offers and impasses. A well-calibrated first offer can anchor the negotiation and steer it toward a mutually beneficial outcome, while an overly aggressive or unrealistic first offer can backfire, creating resistance and leading to deadlock. Martin explains the psychological mechanisms at play and how to craft first offers that maximize value without pushing the other side away. Martin's study of 26 million eBay negotiations, highlights how initial offers significantly impact final prices—higher first offers often lead to better outcomes but also increase the risk of impasse. Our conversation explores what impasses are, their common causes, and how negotiators can recognize and prevent them. While impasses are often seen as negative, they can sometimes lead to better long-term deals. Martin shares practical strategies for overcoming deadlocks, emphasizing the influence of communication channels, time pressure, and relationships. They also offer advice on making effective first offers while minimizing negotiation breakdowns and discuss their current research interests. The episode concludes with reflections on great negotiators from history and their unique approaches to successful deal-making.