Question 1

It is not advisable to focus on a single issue in a negotiation because single-issue negotiations are _______ in nature.

Accepted Answer

Single-issue negotiations are fixed-sum in nature because there is only one issue being negotiated, and any gains made by one party come at the expense of the other party. As a result, the negotiation becomes a zero-sum game, where there is a fixed amount to be distributed between the two parties, and any gains made by one party are offset by losses made by the other party. It is therefore advantageous to have multiple issues in a negotiation, as this allows parties to trade across issues and create value for both parties, thus creating an integrative negotiation.

Question 2

Effective negotiation preparation encompasses three general abilities: situation assessment,other-party assessment,and _______.

Accepted Answer

Effective negotiation preparation involves not only assessing the situation and the other party but also assessing oneself. This includes understanding personal biases, strengths, weaknesses, and goals to better prepare for the negotiation. Financial, location, and team assessments may also be important factors depending on the specific negotiation, but self-assessment is a crucial component.

Question 3

In negotiation,the fixed-pie perception is defined as:

Accepted Answer

The fixed-pie perception in negotiation refers to the belief that the resources are limited and for one party to gain more, the other must correspondingly lose, implying that concessions are necessary to reach an agreement.

Question 4

As compared to negotiators who focus on maximizing gains,negotiators who focus on minimizing their losses are more likely to:

Accepted Answer

Negotiators who focus on minimizing their losses tend to adopt a more defensive and rigid stance, making fewer concessions and, as a result, reaching fewer agreements. This is because their primary goal is to avoid losses rather than to maximize gains, which can lead to a less flexible approach to negotiation.

Question 5

One strategy for improving one's BATNA in negotiation is to:

Accepted Answer

Improving one's alternative options before going to the negotiation table is the best strategy for improving one's BATNA. This involves investing time and effort into finding and developing alternative options that have value and are realistic. By doing so, the negotiator will have more leverage during the negotiation process and can use these alternatives to enhance their bargaining position. Options such as building relationships with other suppliers or customers, developing new products or services, or finding new markets can help to boost one's BATNA.

Question 6

In negotiation,having your first offer immediately accepted by the counterparty is likely to lead to feelings of what might have been different,also known as_________?

Accepted Answer

Counterfactual thinking is the tendency to imagine alternative outcomes to events that have already occurred. If your first offer is immediately accepted, you may wonder if you should have asked for more or if the other party would have conceded to even more favorable terms. This is an example of counterfactual thinking. Linkage effects refer to the impact of one negotiation on another, hindsight bias is the tendency to believe that an outcome was foreseeable after the fact, and gambler's fallacy is the belief that past events can influence future outcomes of independent events, such as flipping a coin.

Question 7

A dispute is best defined as a situation in which:

Accepted Answer

A dispute involves a disagreement or conflict between two or more parties, and a key aspect of a dispute is the presence of a claim made by one party that is rejected by the other party. This rejection can lead to various forms of conflict and disagreement, including legal disputes, arguments, and negotiations. Option A is related to the concept of BATNA (best alternative to a negotiated agreement), which is a separate issue from the presence of a dispute. Options B and D do not accurately reflect the nature of a dispute.

Question 8

In negotiation,buyers and sellers may adopt differing bargaining positions for an object,but their private valuations for the object should not differ as a consequence of who has possession.The endowment effect is best described as:

Accepted Answer

The endowment effect is the tendency for people to value an object more once they own it. This means that the private valuations of buyers and sellers should not differ based on who currently possesses the object. Option A is incorrect as it describes the gap between seller demand and buyer willingness to pay, which is not related to the endowment effect. Option C is incorrect as it refers to the intrinsic value of an outcome, which is not specific to negotiations or valuations of objects. Option D is unrelated to the endowment effect and negotiation.

Question 9

Negotiation is best described as a _______,which involves both _________ and ________.

Accepted Answer

Negotiation is a mixed-motive enterprise where parties involved pursue their own interests while cooperating and competing with the other parties. This process involves a balance between cooperation and competition, as well as understanding the other party's perspective and goals.

Question 10

What is meant by the hidden table in a negotiation?

Accepted Answer

The hidden table in a negotiation refers to the important parties who are the real decision makers but are not present at the negotiation table. It is crucial to identify and consider these parties' interests and perspectives to ensure a successful negotiation outcome. A skilled negotiator should try to uncover and address the hidden table to avoid any surprises or obstacles in reaching an agreement. A, B, and D are not accurate definitions of the hidden table in a negotiation.

Question 11

The term used to represent the quantification of a negotiator's BATNA with respect to other alternatives is known as:

Accepted Answer

BATNA stands for Best Alternative to a Negotiated Agreement. The reservation point is the point beyond which the negotiator would prefer to walk away from the negotiation rather than accept a deal that is less favorable than their BATNA. Therefore, the reservation point represents the quantification of a negotiator's BATNA with respect to other alternatives. The other options (B, C, and D) are not directly related to BATNA.

Question 12

In order to reach a successful negotiation outcome,the negotiators must understand that their BATNA is:

Accepted Answer

BATNA stands for "Best Alternative to a Negotiated Agreement" i.e. the best course of action that a negotiator can take if negotiations fail. It is based on objective reality and represents the realistic alternative if negotiations do not reach a desired outcome. It cannot be modified by persuasive offers or time-sensitive. Option A is incorrect because BATNA is not the outcome that a negotiator wishes to achieve, but rather the alternative if negotiations fail. Option B is incorrect because BATNA cannot be modified. Option C is incorrect because BATNA is time-sensitive as it represents the alternative if negotiations fail at a particular time.

Question 13

When,you are asked about your desired salary in a job interview,what is the best response to use with the prospective employer?

Accepted Answer

The answer of When,you are asked about your desired salary...

Question 14

What is meant by counterfactual thinking in negotiation?

Accepted Answer

Counterfactual thinking in negotiation refers to the process of considering alternative outcomes that could have happened but did not occur. This involves imagining what might have happened if certain decisions or actions had been different. By engaging in counterfactual thinking, negotiators can better understand the factors that led to the current outcome and may be able to find ways to improve the agreement.

Question 15

In preparing for negotiation,a negotiator needs to determine what would constitute an ideal outcome,or favorable set of terms,also known as a _______.

Accepted Answer

A favorable set of terms or ideal outcome is commonly referred to as a target point in negotiation. Option A, winner's result, is not a commonly used term in negotiation. Option C, BATNA, refers to the Best Alternative To a Negotiated Agreement and is a negotiator's best option if the negotiation fails, not the ideal outcome. Option D, reservation point, refers to the bottom line or the minimum acceptable outcome for a negotiator, not the ideal outcome.

Question 16

Negotiators should take the time to brainstorm how a single-issue negotiation may be segmented into multiple issues.By identifying and segmenting the negotiation into multiple issues,negotiators may create _________ .

Accepted Answer

By segmenting the negotiation into multiple issues, negotiators can identify areas where both parties have different priorities and interests. This creates an opportunity to find integrative potential, or areas of overlap where both parties can benefit. This can lead to a more creative and mutually beneficial solution for both parties.

Question 17

What factors can lead a negotiator to be uncertain about his or her BATNA?

Accepted Answer

When potential alternatives arrive sequentially, it can create uncertainty about the best alternative to a negotiated agreement (BATNA) because the negotiator may not have a complete picture of all possible options at any given time.

Question 18

A type of negotiation behavior known as <KT>reactive devaluation refers to:

Accepted Answer

Reactive devaluation occurs when a negotiator devalues the other party's offer simply because it comes from the opponent, regardless of the offer's actual merit.

Question 19

The more _____ the negotiator,the more likely it is that she or he will make greater concessions.

Accepted Answer

Risk-averse negotiators are more likely to make greater concessions to avoid the potential negative outcomes of a negotiation, as they prefer to minimize risk.

Question 20

Negotiators can focus on gains or losses during a negotiation.Most negotiators are _______ when it comes to losses,and _______ when it comes to gains.

Accepted Answer

The answer of Negotiators can focus on gains or losses...

Quiz 2: What to Do Before Negotiation