Deck 3: Distributive Negotiations

Question 1

What defines the bargaining zone in a negotiation? How does a positive or negative bargaining zone affect the outcome of a negotiation?

Answer 1

The bargaining zone is the range between negotiators' reservation points.A positive bargaining zone means that mutual agreement is better than resorting to BATNAs.A negative bargaining zone indicates there is no positive overlap between the parties' reservation points and negotiators should not waste time negotiating but exercise their BATNA's instead.

Question 2

A negative bargaining zone indicates that:

A)parties are worse off by not reaching agreement than by reaching agreement
B)there is no positive overlap between the parties' reservation points
C)parties should keep negotiating to find a positive bargaining zone
D)the counterparty's first offer was not accepted

Answer 2

B

Question 3

If a negotiator desires to maximize his or her outcomes,which of the following best describes the goal that a negotiator should have when approaching a negotiation?

A)To reach a settlement that shares the pie equally with both parties
B)To reach a settlement that is most favorable to oneself and does not give up too much of the bargaining zone
C)To gain all of the bargaining surplus
D)To have the counterparty leave defeated

Answer 3

B

Question 4

Negotiators who desire to increase their share of the bargaining zone are best advised to:

A)set fair aspirations
B)reveal their reservation price
C)improve their BATNA
D)avoid making the first offer

Question 5

Which of the following is a strategically wise method of anchoring?

A)Setting an assertive aspiration point early in the negotiation
B)Immediately rejecting the counterparty's first offer
C)Determining the exact midpoint between the last two offers on the table
D)Refusing to make any concessions

Question 6

Because negotiations are costly to prolong,it is in both parties' interests to determine whether a positive bargaining zone is possible.If the negotiators discover that no positive bargaining zone exists,what is the recommended action they should take?

A)Continue negotiating
B)Stop negotiations and pursue other alternatives
C)Increase the group size of both negotiating parties
D)Take a break

Question 7

If the counterparty opens with an "outrageous" offer,the negotiator should:

A)lower his/her aspirations
B)reveal his/her reservation price
C)immediately re-anchor
D)appeal to norms of fairness

Question 8

What are the most important factors to consider when making concessions in negotiation (so as to maximize your share of the bargaining zone)?

Question 9

Revealing information about a BATNA or a reservation point:

A)reduces a negotiator's power in a negotiation
B)increases the counterparty's propensity for strategic risk taking
C)is a pie-expanding strategy
D)improves the negotiator's odds of getting what they want

Question 10

The Boulwarism strategy,named after a former CEO,often engenders hostility from the counterparty because it prescribes that negotiators should:

A)make their first offer their final offer
B)immediately reanchor the negotiation if the other party opens first
C)lie about their reservation point
D)manipulate the counterparty's reservation point

Question 11

According to a research study examining post-negotiation satisfaction,negotiators who focus on their ideal outcomes do not feel as satisfied as negotiators who focus on their:

A)first offer
B)BATNA
C)negotiator's surplus
D)ZOPA

Question 12

Some negotiators are tempted to lie to the other party in a negotiation.Lying to the counterparty may result in all of the following except:

A)damages a negotiator's reputation
B)respect and subordination of the counterparty
C)having the other party call your bluff
D)an increased likelihood of the chilling effect

Question 13

When formulating counteroffers and concessions,negotiators need to consider three things:

A)the starting value,the end value,and the magnitude of concessions
B)the fairness,the misuse,and the pattern of concessions
C)the pattern,the magnitude,and the timing of concessions
D)the impact,the size,and the timing of endowment effects

Question 14

What are some of the costs of lying in a negotiation?

Question 15

The _______ is a measure of the value that a negotiated agreement offers to both parties over the value of not reaching a settlement.

A)negotiator's surplus
B)bargaining surplus
C)BATNA
D)target point

Question 16

Should a negotiator reveal his or her reservation point? Why or why not?

Question 17

What principle is best to keep in mind when making an opening offer in a negotiation?

A)Don't open too high,or you will insult the counterparty
B)Don't open too low,or you will offend the counterparty
C)Offer a numerical range
D)Make several offers that are satisfying to you

Question 18

Regarding effective strategies for a successful negotiation outcome,why should a negotiator be wary of the even-split ploy?

A)You can seem altruistic and cooperative by considering an even-split
B)By accepting the even-split ploy,you will harm your reputation
C)The pattern of concessions is not always fair and the pattern of offers is not always equal
D)By not accepting you can invite aggressiveness from the counterparty
Discussion Questions

Question 19

In a positive bargaining zone,negotiators' reservation points overlap.If the parties fail to reach an agreement when a positive bargaining zone exists,the outcome is ______ because ______.

A)uneven ; of the chilling effect
B)even ; both sides can walk away
C)a suboptimal impasse ; the negotiators left money on the table
D)unilateral ; negotiators will have to exercise their BATNA's

Question 20

Some negotiators make extreme offers.The result of this strategy often means the counterparty may be offended and walk away from the table.This is known as the:

A)chilling effect
B)goal-setting paradox
C)social utility decline
D)winner's curse

Question 21

What are some factors that dictate which rules of fairness are employed in a specific negotiation situation?

Question 22

Why is it recommended to set specific,challenging,and difficult goals for the outcome of the negotiation?

Question 23

What is the main difference between promotion-focused negotiators and prevention-focused negotiators?

Question 24

What happens if negotiating parties discover they have a nonexistent or negative bargaining zone?

Question 25

What conditions allow negotiators to be more confident about the counterparty's reservation point?