What It Takes to Negotiate

Intelligence and agreeableness will get you far in life. But they won't get you a good deal. Whether demanding a raise or haggling with a car salesman, high intellect may not help, and cooperation can hurt you. Here's what Vanderbilt University professors Bruce Barry and Ray Friedman have found:

• Nice guys finish last. Being genial lowers your chances of success in distributive bargaining situations (in which one party wins and the other loses, like pushing for a raise). And agreeableness and extroversion has no effect on integrative negotiations (in which both sides work toward a mutually satisfying result, as in pitching ideas at work). "Being nice won't necessarily lead to a good deal," says Barry.
• Street smarts beat a high I.Q. In distributive bargains like buying a car, nerve matters more than intellect, says Barry; an aggressive offering price is more important than analytic ability. But in integrative situations, like dividing household chores, assessing your partner's needs is key, so intelligence helps.
• Don't get stuck. When faring a high first offer, you may doubt your ability to get what you want for a lower sum, and make a counteroffer close to the first. Then, says Barry, you're "anchored"—forced to pay more than you intended. Agreeable and extroverted bargainers are most likely to be overpowered in this way; being skeptical of high offers can keep you from spending beyond your means.
• High hopes. To avoid a bad bargain, try expecting a great deal. Says Barry, "If you aim high, you can overcome personality."