In bargaining for a car, the dealer has just dropped $1,000 off the asking price. The customer now feels obliged to increase her offer. The dealer has made use of __________.

Question

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The dealer has used the reciprocal-concession effect, which is based on the idea that when one party makes a concession, the other party feels obligated to also make a concession. In this case, the dealer dropped the price by $1,000 and the customer now feels like she should increase her offer as a result. This is a common negotiation tactic used in bargaining situations.

In Bargaining for a Car, the Dealer Has Just Dropped