3 ms·
Negotiating against myself, and accepting the negotiating "frame" of the bidder when I had a monopoly/monopsony asset. I sold a four-letter common-noun .com do
by PruneTracy 8y ago
Negotiating against myself, and accepting the negotiating "frame" of the bidder when I had a monopoly/monopsony asset.
I sold a four-letter common-noun .com domain to a major corporation back in the '90s when they were scooping up domains, and fell for the "name your price" trick: I asked around and named a number I thought was high and they said "that's acceptable" – I'll never know how much they might have paid if I'd tried to find another bidder and made a market.
Did I learn my lesson? A few years ago I sold a long-term residential lease to a private-equity developer after bidding them up to "enough to buy an equivalent apartment" – but really the value of the lease to them may have been much higher. I negotiated as if I were selling them my apartment, rather than pointing out that what I really held was their ability to freely develop a very valuable property into which they'd already sunk $40 or $50 million.
I can't really complain, both "mistakes" were only failures to maximize windfalls. And I'm not embarrassed – they were professional negotiators and I'm just a lucky programmer. But I do sometimes regret not being greedier!