It is believed, by some people, that when two parties are negotiating over a settled price, the side first proclaiming his price often loses his vantage in the push-and-pull. Contrarily, the proclaimed price acts as an anchor when further negotiation is taking place. To deviate further from the proclaimed price the other side also heightens the risk of breaking the deal. As result, the settled price will not differ from the proclaimed price very much, if the deal is successfully closed.
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