question

Distributive bargaining

answer

win-lose bargaining

question

Target/aspiration point

answer

point at which negotiator would like to conclude negotiations; optimal deal

question

resistance point

answer

price beyond which someone will not go; most they will pay as a buyer/smallest amount they will as seller

question

bargaining range

answer

spread between resistance point

question

positive bargaining range

answer

buyer's RP above seller's

question

negative bargaining range

answer

seller's Rp above buyer's; likely to lead to stalemate

question

BATNA

answer

best alt to a negotiated agreement

question

settlement point

answer

both parties want to end up better than their RP

question

bargaining mix

answer

several factors in a deal,e ach with their own RP's, targets, and startings

question

the higher the other party's estimate of your cost for delay, the ____ their RP will be

answer

stronger; if they see you really need something, they can sieze the advantage

question

the higher the other party's estimate of their own cost for delay, the ____ their RP will be

answer

weaker; convince them that the cost of not doing the deal is high, and they will be more modest in their RP

question

the less the other party values an issue, the ___ their RP will be

answer

lower; make them think things aren't as important, and they will deem it less important

question

the more the other party believes you value an issue, the ___ their RP may be

answer

lower; you put more pressure on them to set more modest RP

question

Tactical tasks - 4 steps

answer

Assess, Manage, Modify, Manipulate

question

Tactical tasks - Assess

answer

assess other party's RP, target, cost of termination; indirect (observations, talk to others), direct (info they give you)

question

Tactical tasks - Manage

answer

manage their impressions; screening activities (silence, say/do as little as possible), selective presentation

question

Tactical tasks - Modify

answer

modify other party's perceptions; one approach is to explain that their desired outcome actually has different effects than what they want; conceal info

question

Tactical Tasks - manipulate

answer

manipulate actual costs of delaying or terminating negotiations; disruptive action (increase cost for them not to settle), alliance with outsiders, schedule manipulation

question

Role of concessions

answer

people are less satisfied when they aren't made; immediate perceived as less valuable, bigger concession the more likely they are further from TP

question

Closing the deal

answer

SEAPS - split the difference, exploding offers, assume the close, sweeteners

question

Hardball tactics - how to deal with them

answer

ignore, discuss, respond in kind, befriend other party

question

Typical hardball tactics

answer

BLAINS CC - Bogey, Low/Highball, Agressive, Intimidate, Nibble, Snow job, Chicken, Cops

question

Bogey

answer

pretending that an issue is extremely important even when it isn't; can be bad as other party will try and get you to care about something you don't

question

Low/Highball

answer

suggest outrageous offer; risk of other party thinking negotiation is a waste of time; good counteroffer is asking the person for a more realistic offer

question

Agressive

answer

can combat by halting negotiations to address process itself

question

Intimidation

answer

guilt/legitimacy can be used; to combat you can pretend it doesn't affect you or say you want a fair negotiation

question

Nibble

answer

ask for something in exchange at the end...something that party won't risk deal over but that will help you

question

Snow job

answer

releasing huge amount of info when only a little is needed; combat, ask questions/don't be afraid to continue

question

Chicken

answer

making big bluffs until someone calls someone else out; to counter you can make your own chicken bluffs or call them out

question

Cops - bad/good

answer

can sometimes backfire because it's distracting to put all that effort into it; can combat by calling them out

question

4 steps to integrative negotiation

answer

IUGE - identify/define, understand, generate solutions, evaluate alternatives

question

Integrative - identify/define problem

answer

set broad parameters for what negotiation is about, provide initial framework for approaching discussion

question

Integrative - understand problem

answer

bring interests/needs to surface; clearly define all problems; state problem as goal and then find out how to work towards it

question

Integrative - generate alt solutions

answer

brainstorming; avoid jumping/evaluating solutions, separate problem from people, ask outsiders

question

Integrative - evaluate

answer

evaluate alternatives and select among them

question

Pareto efficient frontier

answer

when there is no agreement that would make any party better off without decreasing outcomes to any other party

question

Position vs interest

answer

interest is what you want, position is what you're doing to get it

question

types of interest

answer

substantive, process relationship

question

substantive interest

answer

what issues are

question

process interest

answer

how issues are resolved

question

relationship interest

answer

related to how parties value each other

question

why is integrative negotiation difficult

answer

old conflicts die hard, fixed-pie bias, mixed-motive nature of negotiations, short time perspectives, extreme cooperation

question

ways to generate win-win solutions

answer

ELMS N' BCC expanding pie, logroll, modify pie, superordination, nonspecific compensation, bridge, compromise, cut costs

question

logrolling

answer

when there are multiple issues, splitting them up so both parties can benefit

question

modifying resource pie

answer

changing resources available

question

expanding resource pie

answer

adding resources so both can benefit

question

bridge

answer

inventing new options that meet all respective needs

question

cuttings costs for compliance

answer

where you make it so that the party that agrees has cut costs for doing so

question

nonspecific compensation

answer

compensate the other person for accommodating interests

question

superordination

answer

occur when differences in interest that gave rise to conflict are superseded or replaced by other interests

question

common vs shared vs joint goals

answer

common - all parties share equally shared - one both parties work toward but benefits each differently joint - individuals with different personal goals agreeing to combine them in collective effort

question

Strategy vs tactics

answer

tactics are short-term, adaptive moves designed to enact or pursue broad strategies

question

unilateral vs bilateral approaches

answer

unilateral means it is a choice made without active involvement of other party

question

dual concerns model

answer

substantive/relational, both either important or unimportant collaboration (YY) accommodation (NY) competition (YN) avoidance (NN)

question

planning process

answer

check notes

question

perception process

answer

S A R T B stimulus, attention, recognition, translation, behavior

question

halo effects

answer

occur when people generalize about variety of attributes based on knowledge of one attribute

question

selective perception

answer

occurs when perceiver singles out certain info that support or reinforces prior belief

question

projection

answer

people assign to others characteristics they themselves are feeling

question

substantive framing

answer

what conflict is about; parties taking substantive frame have a particular disposition about key issue/concern

question

outcome framing

answer

party's predisposition to achieving a specific result; more likely in distributive than integrative

question

aspiration framing

answer

predisposition toward satisfying broader set of interests/needs in negotiation; rather than focus on outcome, focus on basic interests/needs/concerns; more likely in integrative

question

process framing

answer

how parties will go about disputing; less concerned about specific negotiation issues but more about how deliberation will proceed

question

identity framing

answer

how parties define "who they are"

question

characterization framing

answer

how they define other parties

question

loss-gain framing

answer

how parties define risk of reward associated with particular outcome

question

frames - interests, rights, power

answer

interests - people often concerned about what they need, desire, want rights - people concerned about who is right - that is who has legitimacy, who is correct, what is fair power - people may elect to frame negotiation on basis of power

question

Escalation of commitment

answer

tendency for individual to make decisions that stick with a failing course of action; helpful to have another person to help you avoid this

question

mythical fixed-pie beliefs

answer

people who believe it's win-lose situation; introduce accountability to help avoid this

question

anchoring/adjustment

answer

once anchor is defined, parties tend to treat it as real...avoid by having thorough prep

question

issue framing and risk

answer

way issue is framed influences how negotiators perceive risk in relation to it; risk-averse when something is gain and risk-seeking when loss

question

availability heuristic

answer

how easy something comes to mind

question

winner's curse

answer

tendency of negotiators to settle quickly and then feel as if they came too easily; best way to avoid is to do research beforehand so your first offer isn't possible to get this

question

overconfidence

answer

tendency to believe that their ability to be correct is greater than it actually is

question

law of small #'s

answer

tendency of people to draw conclusions from small sample sizes (negotiators relying on their own experience)

question

self-serving biases

answer

FAE, tendency to think things were more unfair to yourself than others

question

endowment effect

answer

once something is yours, you overvalue it

question

ignoring others' cognitions

answer

ignoring what other party is thinking, which is done probably because it makes the complex task of decision making under risk a lot easier

question

reactive devaluation

answer

devaluing other party's concession simply because they made them; minimize by maintaining objective view

question

pre-negotiation stage of multiparty negotiations

answer

characterized by great deal of informal contact; participants agree on who is going to be invited to talks, coalitions, defining group member roles

question

formal negotiation stage - multiparty negotiations

answer

appoint a chair, use/restructure agenda, ensure diversity of information,

question

3 ways to achieve good discussion during multiparty negotiations

answer

delphi technique - moderator structures initial questionnaire/sends it out to all parties, back and forth brainstorming nominal group - after brainstorming, rank/rate alternatives

question

Four steps to integration

answer

IBGE - identify/define problem, bring interests to surface, generate multiple solutions, evaluate alternatives and select among them

question

Integration steps - define the problem

answer

is definition of problem acceptable to both sides? separate problem from solutions, set specific goals, depersonalize

question

Integration steps - bring interests to surface

answer

with goals, focus on interests and not positions

question

integration steps - generate multiple solutions

answer

position accommodation/achievement, interests achievement/substitution

question

position accommodation

answer

logrolling/compromise

question

position achievement

answer

modifying/expanding pie

question

interest achievement

answer

cost-cutting/bridging

question

interest substitution

answer

nonspecific compensation/superordination

question

integration steps - evaluate/select alternatives

answer

narrow your final option range; be able to justify your preferences; watch out for intangibles; take a break

Negotiation Exam 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards