An important question arises almost invariably whenever we think hard about the concept of negotiation. Are cooperative or competitive methods the better road toward optimal outcomes? Professors Lax and Sebenius have referred to a version of this quandary as the negotiator’s dilemma. Most scholars and thoughtful practitioners eventually conclude that good negotiators must adopt some […]
I have written frequently that efficient, liquid markets price assets more or less correctly and, as a result, it is essentially impossible to “beat the market” over extended periods of time. This “rational market theory” is not personal opinion or one side of an argument but, rather, accepted scientific fact. Economists know that outperformance is […]
In Negotiating Your Investments, I am trying to teach readers a number of different things that I think are important and valuable. Not all of those lessons fit together intuitively, though, and several readers have suggested a short description of the book’s path. Here are the major points of the book in the order of […]
How do you get people to acknowledge scientific fact if it is both counterintuitive and contrary to popular belief? I have faced this challenge since the publication of Negotiating Your Investments and I must confess it is a tough nut to crack. Economists are close to unanimous in their understanding that some form of the […]
To negotiate successfully, you have to figure out the difficult issue of who, and how much, to trust. Here are some things to keep in mind. Trust is not binary. Too many people make the mistake of either “trusting” or “not trusting” their negotiating partners. They unwisely think it is like a switch, either in […]
We can anticipate, with great confidence, that stocks will outperform bonds over time. Or, to use more exacting language, a properly diversified portfolio of stocks will outperform bond investments over long investment periods. As an empirical matter, this is borne out by history and can be checked by doing a little research. There is also a […]
One of the most powerful things you can do to improve your investing is to strengthen your knowledge about how markets really work. The best way is a combination of study and practice. Here is a story that sheds a little bit of light on the subject. As a young man traveling in Mexico, I […]
My Wharton colleague Professor Adam Grant has offered us a new way of thinking about the people we deal with. In his acclaimed new book Give and Take, he proposes considering the world as made up of “givers,” “takers,” and “matchers.” It is an intriguing set of ideas and is eminently useful to you as […]
Have you ever signed a contract that you didn’t fully understand? Or entered into an agreement when some of its provisions were not totally clear to you? Of course you have. If nothing else, we have all clicked “I agree” on Internet sites we not only don’t concur with but, in fact, had no idea […]
One of the places where a negotiation may go awry is communication. It is very easy to make a mistake, ignore something important, misunderstand, or feel deceived. It is just as typical for the person on the other side of the metaphoric negotiating table to do the same. Poor communication is the most common thing […]
Steven G. Blum
Steven G. Blum has been teaching in the Department of Legal Studies and Business Ethics at the Wharton School of Business of the University of Pennsylvania since 1994.
In addition to teaching semester-long courses for undergraduate and MBA students, Mr. Blum has taught in Wharton Executive Education programs, lectured and consulted widely, and frequently leads seminars and educational forums. Mr. Blum has five times won the William G. Whitney Award for outstanding teaching.
Negotiating Your Investments: Use Proven Negotiation Methods to Enrich Your Financial Life (Hardcover)
Investing is best understood as a series of negotiations. The ability to conduct that bargaining with skill and confidence is worth a fortune. Read More