Part 2/8:
At the heart of contentious negotiations is the question of how rational actors should engage with those they perceive as irrational. The simplicity of labeling someone as irrational often leads to the assumption that they are unpredictable; however, this oversimplifies the negotiation landscape. Instead, it is critical for rational actors to navigate through the uncertainty that irrationality introduces into the equation.
The most intriguing scenario to explore is whether it is rational for an actor to feign irrationality. Situations often involve threats and responses: one party issues a warning, and the opposing party must decide whether to concede or risk escalation. The outcomes of these threats can range from beneficial concessions to disastrous confrontations.