Deck 10: Making Rational Decisions in Negotiations

Question 1

Negotiators often give too much attention to the other party's ___________ and not to finding out their underlying interests.

Answer 1

positions.

Question 2

A player's ___________ ____________ is the minimum outcome that this player will require of a negotiated agreement.

Answer 2

reservation price

Question 3

What is the difference between a negotiating party's position and that party's interests?

Answer 3

positions are what parties demand from the other side,while interests are the motives behind these positions - what the parties really want.

Question 4

Game theory provides the most precise prescriptive advice to negotiators,on the condition that:

A)They do not lie.
B)All players are perfectly rational.
C)They focus on interests,and not on arguments.
D)They aware of their BATNAs.

Question 5

A negotiated agreement whose terms depend on some future (uncertain)event is known as a ______________ .

Question 6

The best strategy in negotiation is to get the most important issue resolved in the beginning and then move on to less important issues.

Question 7

Contingent contracts can create value in the presence of what feature:

A)uncertain future outcomes.
B)a negative bargaining zone.
C)differences in the parties' time preferences.
D)differences in the parties' risk preferences.

Question 8

Trust enables value creation through:

A)Creating contingent contracts.
B)Identifying the parties' interests.
C)Facilitating tradeoffs between issues of different relative importance.
D)Sharing information between the parties.

Question 9

Which of the following is not a key set of information in Raiffa's framework for approaching negotiations?

A)Each party's BATNA.
B)The relative importance of each party's interests.
C)Each party's known information about the other party's position.
D)Each party's set of interests.

Question 10

Knowing one's own reservation price is sufficient for making the decision of whether to accept or reject the final offer from the other party.

Question 11

Once a settlement has been achieved,it is wise not to re-open it,because going back to reconsider an issue can harm the mutual trust between the parties.

Question 12

Negotiators often are reluctant to give away information because they assume that:

A)Their information is too important.
B)It will anchor their final outcome.
C)Giving away information is giving away power.
D)If the other side does not ask questions,then their willingness to share information is equally low.

Question 13

Negotiations that do not involve more than one issue involve are likely to focus on ____________ of value but not _____________ of value.