Reading the Room: How Game Theory and Psychology Win Negotiations

In this episode of The Vashisht Family Office Podcast, Chief Investment Officer VK Singh Vashisht and his sister Priya Kumar explore the hidden psychological factors that drive successful negotiations and investment decisions. Through a real-world case study of a Beverly Hills property acquisition during the pandemic, they break down how understanding human behavior gave VK a competitive edge when others were paralyzed by fear and uncertainty.

Episode Highlights:

• How VK used game theory principles to structure a winning real estate deal during market turmoil
• Why understanding the personal circumstances of all parties involved can be more valuable than market data
• The role of cognitive biases in decision-making and how to overcome them
• A practical three-question framework for making better investment decisions
• Quick-fire applications of decision theory to everyday situations

Key Topics Explored:

• Game Theory in Negotiations (06:30)
• The Strategic Value of Information Asymmetry (12:45)
• Cognitive Biases in Investment Decisions (22:15)
• Practical Decision-Making Framework (31:00)
• Quick-Fire Application Round (35:30)

Quotes: "The best opportunities appear when emotion is driving the market rather than fundamentals." - VK Singh Vashisht

"Many investors miss the human element—they focus exclusively on the numbers and market trends while overlooking the personal circumstances driving the other party's decisions." - VK Singh Vashisht

Resources Mentioned:

• "Thinking in Bets" by Annie Duke
• "Influence" by Robert Cialdini

Connect With Us:

• Instagram: @vashishtfamilyoffice
  X @vashishtfo
• Website: www.vashishtfamilyoffice.com
• Email: podcast@vashishtfamilyoffice.com

Coming Next Episode: Join us as VK reveals why 88% of the millions he committed to alternative investments remains uninvested three years later, and the tough lessons learned about private equity, venture capital, and private credit since beginning this journey in 2022.

About The Hosts: VK Singh Vashisht is the Chief Investment Officer of the Vashisht Family Office with 15 years of investment experience across traditional and alternative asset classes.

Priya Kumar is a performing artist, small business owner, and special advisor to the Vashisht Family Office, bringing a creative perspective to investment and business decisions.