Lets now move on to another tool or a trap related to psychology and that's the concept of reciprocation, or also called reciprocity. And basically what this means is that when somebody does something for us, we as human beings feel the need to repay, what they've given us. According to anthropologist Richard Leakey, this is what really makes us human, and separates us from other forms of animal life. When we first began to share food, to share tools and to reciprocate with each other. Now reciprocity is a tool that's especially useful in negotiation and let me give you a personal example of reciprocity in a negotiation I was involved in, in India, a few years ago. One of my former students invited me to participate in his wedding in Mumbai. So I flew out for the wedding, and had a wonderful time participating in the wedding, but then had a couple of extra days to explore the city following the wedding. So one afternoon I visited a beautiful area in Mumbai called the Hanging Gardens wonderful park. And as I approached the Hanging Gardens, a young girl who looked like she was probably seven or eight years old, and perhaps lived on the street, walked up to me, and offered to sell me a fan, made out of peacock feathers. I said absolutely not interested. So I then started to walk into the park, and as I walked into the park, she followed me, and as she followed me, she described various features in the park. She described the vegetation, the topiary, some buildings, the history of the park, in effect she gave me a wonderful guided tour. Guess what I walked out of the park holding? A peacock fan. She may have been young she may have lived on the street but she was very smart and she understood that if she did something good for me, I would feel the need to reciprocate. This is something that's very useful in negotiation, where there are many issues involved, and where for example there's an issue that's important to the other that maybe is less important to you. When you give in on that issue. Then often they will feel the need to reciprocate, and give in on another issue that's more important to you. So in, in trading off issues, reciprocity plays an important role. Let's now move on to the next tool or trap, which is called the contrast principle, which basically means that things look different when presented in sequence, than when they do when presented in isolation. And let me give you another personal example of the contrast principle. When I bought my first house, I asked a real estate agent to show me some properties. So she first took me to a house that was probably the ugliest house I've ever seen, it was very rundown, needed a lot of work, and it had a huge price, and I said absolutely not interested. Then she sent me, took me to a separate. A second property that was an attractive house but still very run down, needed a lot of work, and had a huge price. Said, not interested. Then she took me to a third property, this one was very attractive, very well maintained, and had a huge price. I said, I'll take it. Now, what had she done? Well, she used the contrast principle. She realized that, that third house was going to look a lot different, after I looked at the other two. It was going to look a lot different in contrast to the other two. In fact, realtors often call these properties, the first two properties, set up properties. They're setting me up for the third property, which looks different in contrast. Had she taken me to the third property first, I probably would have said, absolutely not interested, the price is way too high. But in contrast to the other two, it looked like a good deal. Let me read you a letter, that has been on the internet for a number of years. It's a very touching story. It's a letter from a college student, to her parents. And this is the way the letter reads. Dear Mom and Dad, it has been three months since I left for college, I'm very sorry for my thoughtlessness in not having written before, I will bring you up to date now, but before you read on, you better sit down, okay? I'm getting along pretty well now. The skull fracture and the concussion I got, when I jumped out of my apartment window when it caught fire, shortly after my arrival, is pretty well healed now. I only spend two weeks in the hospital, and now I can see almost normally, and only get those sick headaches once a day. Luckily, the fire in my apartment and my jump, were witnessed by Roger, an attendant at a gas station. And he was the one who called the fire department. He also visited me in the hospital. And since I had nowhere to live, he was kind enough to invite me to share his apartment with him. He's a very fine man, and we are planning to get married. We haven't set the date yet, but it will be before my pregnancy begins to show. His divorce is final now, and he shares custody of his three children. The reason for the delay in our marriage, is that Roger has a minor infection which presents, prevents us from passing our pre marital blood tests, and I carelessly caught the infection from him. This will soon clear up, with the penicillin injections I am taking daily. Now that I have brought you up to date, I want to tell you that there was no fire in my apartment. I did not have a concussion or a skull fracture, I was not in the hospital. I am not pregnant, I'm not engaged, I do not have syphilis. And there is no divorced man in my life. However, I am getting a D in my art class and an F in biology. And I wanted to, you to see those grades in their proper perspective. Your loving daughter, Jane. Well, Jane might have be having trouble with biology, but, she certainly understands the contrast principle. And I'm sure she's going to do very well in her psychology classes. Okay. One last tool or trap and that is, looking at the big picture perspective. Very important in any negotiation, not to get lost in the details. What I'd like you to do now, is to hit pause and go to this website and watch this YouTube video. What you're going to see is a scene something like this. You're going to see two basketball teams, one team wearing white shirts, and the other team wearing black shirts. Each team has a basketball. And they're passing the ball to their other team members. What I'd like you to do, is to count the number of passes, made by the team members wearing white shirts. This takes a lot of concentration, to try to get an accurate count. This only takes, oh, I'm not sure, maybe 15 seconds. So please stop, go to this website, watch the video and see if you can answer, the question correctly. How many passes made by the team members, wearing white shirts. And what you'll find out, when you finish, is an illustration of the importance of not getting lost in the Details, and taking a look at the big picture, which was very well put, recently, by a lawyer She's actually a Canadian lawyer working for the International Air Transport Association. When you negotiate you need to always keep in mind the big picture of what your client wants to achieve, and always come back to it, to avoid the trap of being lost in the details. Well this concludes, our look at a number of psychological tools and traps. And as I suggested at the beginning, I recommend that you keep this checklist close at hand. Like Charlie Munger, who advises Warren Buffett, you might want to stuff it into your pocket. And whenever you're faced with a question, a dilemma, challenge during negotiation or maybe even when making financial decisions or leadership decisions, pull it out of your pocket to test your judgment. This concludes our look at the unit on negotiation.