A practical discussion with Michael Phillips on cognitive bias and how anchoring references shape perception, judgement, and outcomes in negotiations.

In this episode of The Negotiation Club Podcast, Philip Brown is joined by Michael Phillips, negotiation trainer and author of "The Naked Negotiator") to explore the role of cognitive bias in negotiation decision-making.

The conversation focuses on how negotiators are influenced by information that appears neutral or unrelated, often without realising it.

Philip and Michael examine why negotiators are rarely as objective as they believe. Drawing on behavioural science and real-world examples, they discuss how cognitive shortcuts affect judgement, confidence, and perception during negotiation conversations.

The episode highlights how bias operates quietly, shaping decisions long before proposals are made.

A central theme of the discussion is the Anchoring Reference, a tactic that introduces a number or reference point before the real variables are negotiated.

Using examples ranging from Robert Cialdini’s sales anecdotes to Michael’s own experiment involving random numbers influencing champagne pricing, the episode shows how anchors can:

Crucially, the Anchoring Reference protects the negotiator’s real position while shaping the context in which decisions are made.

To practise this skill, focus on identifying where reference points appear in your own negotiations, especially those that seem irrelevant at first glance.

Try introducing a neutral or contextual reference before discussing the real variable and observe how it affects the other party’s reactions and expectations.

A dedicated Negotiation Card on the Anchoring Reference has been created to support deliberate practice of this technique in live and simulated negotiations.