People are not particularly fond of losing. Everybody likes a winner and it is important for us all to be on the winning side. In fact, it is essential for individuals to be on the winning side that research demonstrates that normally we have a pretty an interesting method to dealing with potential dangers.

In an area of study known as Prospect Theory, Kahneman and Tversky looked into the likely anomalies and contradictions in human conduct. They found that research subjects when given an option introduced in one way might present cautious behaviour but when offered basically the same choice formulated in a different way the same research subjects might show risk seeking methods.

An important result of the study performed by Kahneman and Tversky is that they found that people's attitudes towards challenges associated with potential benefits are often very unlike their behaviour when it comes to risks associated with potential deficits.

For example, when subjects are presented an option between getting $1000 with confidence or getting a 50% chance for getting $2500, they may well choose the guaranteed $1000 in preference to the uncertain chance of getting $2500 even though the analytical expectation of the uncertain option is $2500. This is a completely sensible mindset that is referred to as risk aversion.

But Kahneman and Tversky also found that the same people when challenged with a certain loss of $1000 versus a 50% possibility of no loss or a definite loss of $2500 do frequently select the risky option. This is called risk seeking behaviour.

What it implies for you in the context of your business negotiation or negotiation training is that it is really recommended that you explain to your counterparts the things they bear to lose if they do not move the way that you are suggesting. It is always wise to notify your counterparts the things they stand to acquire by shifting in your direction but the strength of your argument will likely be enhanced if you could add to the advantages the particular things that they are going to fall short on if they do not shift in your direction.

This kind of loss framing is most powerful when it is combined with the Scarcity principle of influence that states that we assign much more worth to those things which are less available. We should thereby focus on those things that are uniquely relevant to our own suggestions and in addition to pointing out the advantages associated with going in our direction we should always also point out the specific, unique things that our counterpart may stand to lose if they do not move in our direction.

Making use of negotiation skills such as loss framing to your benefit is a sure way which you could use the concept of losing to assist you to succeed.

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