Deck 4: Win-Win Negotiation: Expanding the Pie

Question 1

What happens at the third level of the pyramid model of integrative agreements?

A) Negotiators reach an agreement below both parties' reservation points.
B) Both parties' reservation points are too high to reach an agreement.
C) Negotiators fail to reach an agreement when the bargaining zone is positive.
D) Both parties achieve an agreement that cannot be improved for one party without harming the other party.

Answer 1

D

Question 2

A win-win negotiation is only achieved when parties make equal concessions or split the difference.

Answer 2

False

Question 3

Jayne is in the process of negotiating an employment contract with BlueSun Corp.Jayne offers to join in a month's time,after serving notice at her present job,while BlueSun needs her to join immediately.Jayne is holding out for a pay package that is well above BlueSun's reservation point.Given that BlueSun's priority is getting someone to join immediately,which of the following situations,if true,would be most likely to result in a settlement to both their satisfactions?

A) The time factor is the most important consideration for both parties.
B) Jayne is willing to forgo the high pay package in return for the later joining date.
C) BlueSun can stretch its budget to give Jayne the pay package he wants.
D) For Jayne, the economic considerations outweigh all the others.

Answer 3

D

Question 4

Which of the following is the best example of an integrative negotiation?

A) MLK and BlueSun Corp. reach a compromise in an attempt to reach a midpoint between their opposing desires.
B) BlueSun Corp. opens the negotiation by requesting something that is immediately granted.
C) Both MLK and BlueSun Corp. are satisfied with the outcome of the negotiation.
D) MLK and BlueSun Corp. utilize all available resources to bring about the desired changes.

Question 5

Negotiators who make multiple equivalent offers enjoy more profitable negotiated outcomes.

Question 6

Negotiating each issue separately does not allow negotiators to make trade-offs between issues.

Question 7

False conflict occurs when people believe that their interests are incompatible with the other party's interests when,in fact,they are not.

Question 8

In which of the following cases is a settlement along the Pareto-optimal frontier impossible?

A) The negotiation is a fixed-sum negotiation.
B) Both parties are willing to make concessions.
C) The sum of one outcome is greater than the other.
D) Both parties are willing to trade off certain points.

Question 9

Negotiators should always use premature concessions to gain the other party's trust.

Question 10

Reaching a level 2 agreement,in which negotiators create value with respect to a given negotiated outcome by finding another outcome that all prefer,implies that ________.

A) the bargaining situation is not purely fixed-sum
B) the level 1 agreement was a failure
C) the parties' reservation points have not been reached
D) a level 3 integrative agreement is not possible

Question 11

What happens at level 1 of integrative agreements in the pyramid model?

A) Agreements remain at the "no agreement" level.
B) Negotiators are apt to make large concessions.
C) Negotiators manipulate the others' negotiation points.
D) Agreements exceed parties' reservation points.

Question 12

Anne is offered a lucrative offer from Katapult Inc.which she is unwilling to give up.The only downside to the offer is that she will be required to travel,which conflicts with her desire to spend time with her family.She tries to negotiate with management so that they make concessions for her.Which of the following satisfies the condition for Anne to reach a win-win agreement with management?

A) Both parties have the same interests and preferences across all the negotiation issues.
B) Both parties adopt an inflexible approach with regard to their terms and conditions.
C) Both parties have different strengths of preference across negotiation issues.
D) Both parties are strictly cautioned not to make side deals or side payments.

Question 13

Which of the following is most likely to increase the chances of an integrative negotiation?

A) tradeoffs between parties
B) reaching the middle ground
C) an even split division
D) single-issue negotiation

Question 14

For contingency contracts to be effective,they should create a conflict of interest.

Question 15

Which of the following comes closest to implying a win-win situation?

A) reaching a middle ground between negotiators' positions
B) dividing the bargaining zone among the negotiators
C) satisfaction on the part of both negotiating parties
D) leveraging all creative opportunities and resources

Question 16

The illusion of transparency occurs when negotiators believe they are revealing more than they actually are.

Question 17

It is similarities in preferences,beliefs,and capacities that may be profitably traded off to create joint gain.

Question 18

The union of both parties' issues forms the issue mix of the negotiation.

Question 19

The strategy of trading off so as to capitalize on different strengths of preference is known as unbundling.

Question 20

What does the Pareto-optimal frontier of agreement imply?

A) maximum value for one party, none for the other
B) maximum value for only one of the parties
C) no value for either of the parties
D) maximum value for both parties

Question 21

How do negotiators with high epistemic motivation influence a negotiation in their own favor?

A) They are motivated to find the quickest solution.
B) They possess a lot of nondiagnostic information.
C) They tend to exaggerate or lie about their BATNA.
D) They ask more questions in a quest for structure.

Question 22

Negotiators can capitalize on the reciprocity principle by ________.

A) both parties keeping high aspiration points
B) both parties sharing information about their interests
C) both parties keeping low aspiration points
D) both parties hiding their reservation points

Question 23

According to the fixed-pie perception,________.

A) a negotiator believes that he must get what the other party is not willing to part with
B) a negotiator believes that the other party has the same interests as his own
C) a negotiator believes that the other party has interests contrary to his own
D) a negotiator believes that the other party has interests that overlap with his own

Question 24

Negotiations that contain only one issue are always ________.

A) presettlement settlements
B) equal-concession negotiations
C) illusory conflicts
D) purely distributive negotiations

Question 25

The multiple-offer strategy is based on the strategy of ________,meaning that a negotiator can deduce what the other party's true interests are and where the joint gains are.

A) relational accommodation
B) inductive reasoning
C) substantiation
D) logrolling

Question 26

What is the illusion of transparency?

A) A negotiator has more information about the other party than the other party is aware of.
B) The negotiators believe that they are revealing more than they actually are.
C) The negotiators keep their aspiration points clear with each other.
D) The negotiators disclose their BATNAs to each other but one or both of them is lying.

Question 27

The negotiators of two companies do not succeed in aligning their terms of agreement despite the fact that both desired the same outcome.What is this situation known as?

A) the lose-lose effect
B) the Pareto-optimal frontier
C) integrative negotiation
D) logrolling

Question 28

Welhome Realty,a real estate giant,hires agents to help it out with the sale of land.As the standard pay package would not be motivating enough for the agents' performance,the owner decides to provide them with incentives.Per the scheme,for every piece of land that is sold above the market price,the agents will receive 10% of the differential amount as bonus in addition to their salary for sale at market price.Which of the following satisfies the condition for a contingency contract?

A) The real estate giant encourages a written contract for the sale of land at the market price but does not do the same for the brokers.
B) The real estate giant offers 10% of any value sold above the market price and makes a written contract for the same.
C) It is difficult to make a correct estimation of the market value of given piece of land.
D) The real estate giant offers 10% of any value sold above the market price at his discretion.

Question 29

________ refers to agreeing on issues before being asked by the other party.

A) Fixed-pie perception
B) Logrolling
C) Unbundling
D) Premature concession

Question 30

Which of the following is least likely to lead to a lose-lose negotiation?

A) illusory conflict
B) fixed-pie perception
C) logrolling
D) substantiation

Question 31

The belief that the other party has interests diametrically opposite to the party's own interests is explained by the term ________.

A) premature concession
B) Boulwarism
C) positional bargaining
D) fixed-pie perception

Question 32

Which of the following is likely to be counter-productive in any negotiation?

A) compromise
B) substantiation
C) making side deals
D) even splits

Question 33

Which of the following is true for a purely fixed-sum negotiation?

A) An equal spilt between both parties is not possible.
B) Both parties' outcomes can be improved simultaneously.
C) The settlement cannot lie on the Pareto-optimal frontier.
D) One party's gain is the other party's loss.

Question 34

Which of the following best describes a false conflict?

A) A conflict that involves people who are interested in solving a problem and are willing to listen to each other. Such conflicts are constructive, support the company's goals, and improve performance.
B) A conflict in which one person's opinions, ideas, or beliefs are incompatible with those of another, and the two seek to reach an agreement of opinion.
C) A conflict in which people vie for limited resources but only one party is successful.
D) A conflict in which people believe that their interests stand at odds with the other party's interests, when, in fact, they don't.

Question 35

What does logrolling imply?

A) making an initial demand beyond the zone of acceptability
B) capitalizing on differences by making bets based upon different world occurrences
C) trading off in order to benefit from divergent strengths of preference
D) making the initial demand within the zone of acceptability

Question 36

A contingency contract is often required when negotiators ________.

A) capitalize on their differences
B) must get the contract ratified by others
C) reach a consensus about the future
D) find that their views coincide

Question 37

An Ohio resident is trying to sell her house for which she had paid $540,000 two years ago.Though she is ready to sell it at the original price,research into the market value tells her that a house of similar size in Ohio is worth $580,000 at this time.The house is in unrepaired condition and the estimated repair charge is $125,000.She has tried unsuccessfully to sell the house five times over and is moving for good to St.John's to live with her ailing mother at the end of the month,where she plans to buy a comparable property for $ 385,000.She wants to pay for the property at St.John's immediately and does not have any other sources of finance.There are a few buyers who have shown interest in the Ohio home.Which of the following options can solve her problem and can lead to a win-win agreement between the parties?

A) Buyer A agrees to pay $580,000. However, as the amount is large, he agrees to pay the amount over three years in installments.
B) Buyer B is willing to pay $ 540,000, which is the market price rather than the original price, in installments over two years.
C) Buyer C agrees to pay $ 500,000 but says he will deduct the repair charges from the amount.
D) Buyer D says that he can't pay more than $ 400,000, as he has limited funds, but is ready to close the deal quickly.

Question 38

________ occurs when people believe that their interests are incompatible with the other party's interests when,in fact,they are not.

A) False optimism
B) Illusory conflict
C) Premature concession
D) The illusion of transparency

Question 39

The negotiators of ApriCots Inc.and Fortywinks Co.are deep in negotiations.Though each company has its own perspectives,the talks have been smooth sailing so far.Which of the following could act as a bottleneck in reaching win-win agreements?

A) mirroring
B) logrolling
C) substantiation
D) unbundling

Question 40

The multiple-offer strategy involves ________.

A) devising multiple single-issue offers
B) devising offers that split the difference between the parties
C) making all the offers sequentially
D) devising offers that are all of equal value to yourself

Question 41

Which of the following represents the characteristics of presettlement settlements (PreSS)?

A) informal, long-term and partial
B) unilateral, long term and formal
C) formal, initial and partial
D) formal, complete and unilateral

Question 42

Which of the following best describes a "flower child" negotiator?

A) one who adopts a tough, hard stance to negotiate successfully
B) one who claims resources rather than expanding the pie
C) one who believes that adopting a soft stance can lead to successful negotiations
D) one who is so busy expanding the pie that he or she forgets to claim resources

Question 43

Which of the following most indicates that a party in a negotiation would be willing to accept a contingency contract?

A) The negotiators have the same strengths.
B) One of the negotiators has a loss-frame.
C) The negotiators have points for trade off.
D) Both negotiators share a gain-frame.

Question 44

Bonet Inc.and Madison & Co.are on the verge of beginning negotiation talks with regard to a tentative merger.However,the management of both companies can't agree on the kind of manufacturing technology to be employed once the companies merge.As neither wants to forgo the merger,the intermediaries decide to chalk out a presettlement settlement (PreSS).Which of the following conditions must be satisfied in order for the settlement to hold good?

A) The PreSS must occur after the negotiations and should be designed to be replaced by a long-term agreement.
B) The PreSS should occur in advance of the parties undertaking full-scale negotiations and is designed to be replaced by a long-term agreement.
C) The PreSS must occur in advance of the parties' undertaking full-scale negotiations and cannot be replaced by a long-term agreement.
D) The PreSS must occur after full-scale negotiations and negotiators must agree to explore other options with the goal of finding another that both prefer.

Question 45

Which of the following occurs during the postsettlement settlement strategy?

A) Negotiators explore other options while maintaining their BATNA constant.
B) Negotiators stop exploring other options and accept the settlement as a permanent fixture.
C) Negotiators decide to reject the previously decided-upon settlement and cease negotiation.
D) Negotiators explore other options with the goal of finding another that both prefer more than the current one.

Question 46

Describe the multiple-offer strategy for negotiations.

Question 47

Explain the criteria under which contingency contracts are effective.

Question 48

Which of the following is true for a presettlement settlement?

A) They are not binding on the negotiating parties.
B) They are permanent and cannot be changed.
C) They resolve all outstanding issues between the parties.
D) They are intended to be replaced at a later date.

Question 49

In a negotiation,the issue mix ________.

A) occurs when one negotiator misunderstands the other
B) occurs when negotiators' preference strengths coincide
C) is the conflict between negotiators' desires
D) is the union of both parties' considerations

Question 50

To be effective,a contingency contract requires that there be ________.

A) no conflict of interest
B) one-time interaction
C) no difference of opinion
D) no enforceability