Have you ever escalated your commitment to a losing course of action? Ever hired the wrong employee? Have you ever paid more than you should have for an item because you had invested so much time in the negotiation?
Whenever we throw good money after bad we fall into a trap that organizational behavior expert Barry Staw calls escalation of commitment to a losing course of action. We find it hard to step away after investing time, energy or resources to a choice that goes bad.
One simple solution is taking time to plan. Set your goal. Most important is setting the point when you will walk away. Know your alternative to no deal . Keep your strategy in front of you. Review it often.
The success or failure of any negotiation depends on how much effort you put into planning and understanding your alternatives.