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Sale of Invention Rights

Sale of Invention Rights

A businessman came to know about a scientist, who had invented a very useful product. He invited the inventor to visit his office for a probable sale of the rights to this invention. The scientist agreed to discuss and visit his office.
During the journey, the scientist thought about his opening offer as well as walk away price to sell the rights to his invention.
Upon arrival to the businessman's office, the negotiations began. The scientist accepted the offer which was almost 20 times of his initial estimates.
How could the scientist pull of this miracle?
Image Credits - https://pixabay.com/de/vectors/silhouette-team-building-3265909/
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Anil
Anil
The businessman made the first offer and the fortunate scientist accepted the offer. Leo Baekeland was the scientist in this story, who invented a type of photographic paper which could be developed under artificial light. George Eastman, the business man came to know about this invention and he invited the scientist him to explore sale of this special paper technology. Before the discussions, the inventor thought to ask for $50K. He even decided his walk away price to conclude the sale, which could be $25K. Once the discussions began, the business man spoke first and offered one million dollars. This was very fortunate for the scientist and he accepted the deal immediately. At times, we fail to see the deal from others perspective and leave the money on table.
Anil
Anil
The businessman made the first offer and the fortunate scientist accepted the offer. Leo Baekeland was the scientist in this story, who invented a type of photographic paper which could be developed under artificial light. George Eastman, the business man came to know about this invention and he invited the scientist him to explore sale of this special paper technology. Before the discussions, the inventor thought to ask for $50K. He even decided his walk away price to conclude the sale, which could be $25K. Once the discussions began, the business man spoke first and offered one million dollars. This was very fortunate for the scientist and he accepted the deal immediately. At times, we fail to see the deal from others perspective and leave the money on table.

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The mistakes we make in our everyday life

• We are hardwired to make these mistakes • Few biases are simply evolutionary • These errors affect all of us including the bright ones • Experience is just not enough to overcome • but expertise is required to recognize and overcome

Few of biases as below · Anchoring - When an individual depends too heavily on an initial piece of information during decision making · Fixed pie - When we assume that our interests conflict with the other party's interests and we play adversarial · Framing - When we decide on our options differently when the options are presented with positive or negative connotations · Vividness – When we pay attention to strong features at the expense of less, that could be more impactful · Over confidence – When our subjective confidence is greater than the objective accuracy · Escalation – When initial decision is followed up with an irrational decision to justify the initial decision

Few ways to mitigate these biases are · Learn to recognize the bias · Use slow, effortful and logical thinking (System 2) · Avoid fast, automatic and effortless thinking (System 1) · Avoid negotiations which are thrust upon when not ready · Learn through use of stories, examples, exercises · Bring an outsider perspective