Deck 11: Tacit Negotiations and Social Dilemmas

Question 1

In contrast to structural strategies,psychological strategies are inexpensive.

Answer 1

True

Question 2

Which of the following is a characteristic of a noncooperative negotiation?

A) People know in advance what actions will be taken by others.
B) People negotiate via proposals and counterproposals
C) People usually come to the table voluntarily.
D) The contract is tacit.

Answer 2

D

Question 3

Public goods dilemmas are also known as collective traps.

Answer 3

False

Question 4

The rational pursuit of self-interest is detrimental to collective welfare.

Question 5

Which of the following terms refers to a two-person dilemma?

A) environmental dilemma
B) tacit dilemma
C) prisoner's dilemma
D) explicit dilemma

Question 6

Which of the following is a typical characteristic of a tacit negotiation?

A) absence of a binding contract
B) interest-based negotiation approach
C) wide bargaining zone
D) presence of more than five principal parties

Question 7

In the case in which parties interact with one another for an infinite or indefinite amount of time,the logic of backward induction breaks down.

Question 8

People behave less competitively in groups than in two-person situations.

Question 9

In 1981 Robert Axelrod,a leading game theorist,invited members of the scientific community to submit a strategy to play in a prisoner's dilemma tournament.The winning strategy of the tournament was called ________.

A) graduated reduction in tension strategy
B) backward induction
C) dominance strategy
D) tit-for-tat

Question 10

Which of the following is a mechanism by which a person decides what to do in a repeated game situation by looking at the previous games from the last stage of the game?

A) blue ocean strategy
B) dominance strategy
C) tit-for-tat
D) backward induction

Question 11

The distinction between explicit and tacit negotiation situations was first articulated by ________,who referred to one branch of negotiations as "cooperative games" and the other as "noncooperative games."

A) Abraham Maslow
B) Douglas McGregor
C) Frederick Herzberg
D) John Nash

Question 12

Which of the following statements is true regarding tacit negotiations?

A) In tacit negotiations, outcomes of negotiators are independent of each other.
B) In tacit negotiations, all the negotiators unanimously take one decision and then implement the same.
C) The Kyoto Protocol is an example of a tacit negotiation.
D) In tacit negotiations, people seek to reach mutual agreement via binding contract.

Question 13

The negotiation situations in which people seek to reach mutual agreement via binding contract are called ________ negotiations.

A) concurrent
B) explicit
C) reciprocal
D) tacit

Question 14

A person using the tit-for-tat strategy typically earns more than his or her opponent.

Question 15

Robert and Jaden are facing a prisoner's dilemma.According to the principle of dominance detection,a dominant strategy for Robert results in ________.

A) a poor outcome for Robert no matter what Jaden does
B) a better outcome for Robert no matter what Jaden does
C) a poor outcome for Robert only when Jaden behaves in a particular way
D) a better outcome for Robert only when Jaden behaves in a particular way

Question 16

Tacit negotiations are characterized by binding contract.

Question 17

As compared to written-only or no communication,people who communicate face-to-face are much more likely to reach a mutually profitable deal.

Question 18

Which of the following is a characteristic of a cooperative negotiation?

A) The contract is tacit.
B) People usually come to the table voluntarily.
C) People often do not know what others will do.
D) People negotiate through their behaviors and actions (rather than their promises of what they will do).

Question 19

Social dilemmas are riskier than prisoner's dilemmas.

Question 20

The Kyoto Protocol is an example of an explicit negotiation.

Question 21

Resource conservation dilemmas are also known as ________.

A) collective traps
B) social fences
C) environmental traps
D) collective fences

Question 22

Public goods dilemmas are also known as ________.

A) social fences
B) environmental traps
C) collective fences
D) collective traps

Question 23

William and Julia are talking about environmental pollution and how,on an individual level,they can take some action to stop further pollution of the environment.William believes that reduction of his carbon footprint alone will not improve the environment since one individual's impact on the environment is negligible.He therefore does not bother much about it.If everyone were to follow William's belief it would result in a phenomenon known as the ________.

A) backward intention
B) tragedy of commons
C) social dilemma
D) dominance strategy

Question 24

Which of the following statements is true regarding a social dilemma?

A) Social dilemmas provide anonymity that prisoner's dilemmas do not.
B) Prisoner's dilemmas are riskier than social dilemmas.
C) A social dilemma involves only two parties.
D) When compared to prisoner's dilemmas, people in social dilemmas have more control over the situation.

Question 25

The multiperson prisoner's dilemma is known as a(n)________ dilemma.

A) social
B) concurrent
C) reciprocal
D) environmental

Question 26

Since Mathew avoids paying his taxes,in the context of a public goods dilemma,Mathew is a(n)________.

A) boundary spanner
B) free rider
C) early adopter
D) laggard

Question 27

Patrick donates money to the community welfare fund and does a lot of social work.In the context of a public goods dilemma,Patrick can be affectionately called a(n)________.

A) sucker
B) boundary spanner
C) early adopter
D) free rider

Question 28

You are facing a prisoner's dilemma and you realize that the spiral of defection is escalating.In such a situation which of the following strategies can be implemented by you?

A) See your actions as the response to the counterparty's behavior.
B) Rebuild trust incrementally by taking a series of small steps.
C) Ensure some time delay between your decision and your counterparty's decision.
D) Offer large concessions in the hope that the other party will cooperate.

Question 29

Which of the following statements is true regarding a prisoner's dilemma?

A) A prisoner's dilemma involves more than two parties.
B) In the case of a prisoner's dilemma, the costs of defection are spread out, rather than concentrated on one person.
C) Social dilemmas are riskier than prisoner's dilemmas.
D) As compared to social dilemmas, people in prisoner's dilemmas have less control over the situation.

Question 30

Jessica is facing a prisoner's dilemma and she decides to use the tit-for-tat strategy.Which of the following statements is true regarding the outcome?

A) Jessica will always earn less than her opponent.
B) The most Jessica will earn is as much as her opponent.
C) Jessica will always earn more than her opponent.
D) Jessica will defect on the first trial

Question 31

Tit-for-tat strategy can never do better than its opponent because ________.

A) it always cooperates
B) it defects on the first trial
C) it always defects
D) it cooperates on the first trial

Question 32

Privatization involves ________.

A) government intervention to correct market imperfections, with the idea of improving social welfare
B) putting public resources under the control of specific individuals or groups
C) appointing an autocratic leader to monitor the behavior of people
D) inducing cooperation by monitoring the risk associated with defection

Question 33

In the case in which parties interact with one another for an infinite or indefinite amount of time,the game theoretic analysis indicates that ________ is the optimal choice.

A) cooperation in the first period
B) defection in the first period
C) always cooperating irrespective of the counterparty's actions
D) always defecting irrespective of the counterparty's actions

Question 34

David is using the tit-for-tat negotiation technique.Which of the following is most likely to be his opponent's response?

A) The opponent will use the backward integration strategy in response.
B) The opponent will use the rights-based approach.
C) The opponent will exhibit an individualistic motivational orientation.
D) The opponent will behave in a cooperative manner.

Question 35

In the case of a prisoner's dilemma,if we believe that everybody else is as rational as us then according to Hofstadter,this belief is called ________.

A) evolved rationality
B) supreme rationality
C) superrationality
D) collective rationality

Question 36

Which of the following is a form of social dilemma?

A) public fences
B) environmental traps
C) social fences
D) collective traps

Question 37

When a leader is introduced into a social dilemma situation,especially a(n)________ leader,individual group members might fear restriction of their freedom.

A) transformational
B) autocratic
C) Laissez-faire
D) democratic

Question 38

Which of the following structural strategies attempts to induce cooperation through rewards and recognition such as an employee-of-the-month award?

A) monitoring behavior
B) privatization
C) regulation
D) aligning incentives

Question 39

In general,people behave more competitively (in a self-interested fashion)in social dilemmas when compared to prisoner's dilemmas.Which of the following statements,if true,will weaken this argument?

A) Social dilemmas provide anonymity.
B) In the case of social dilemma, it is easy to alter and reinforce behaviors of others.
C) Social dilemmas are riskier than prisoner's dilemmas.
D) In the case of a social dilemma the costs of defection are spread out, rather than concentrated upon one person.

Question 40

The tit-for-tat strategy is successful in maximizing the overall long-term gains because ________.

A) it uses forecasting methods to predict the opponent's actions
B) it widens the bargaining zone
C) it induces cooperation from its opponent
D) it defects on the first trial

Question 41

Which of the following actions is most likely to result in a dramatic increase in cooperation?

A) appointing an autocratic group leader
B) decreasing the risk associated with defection
C) imposing social sanctions
D) allowing group members to communicate with each other

Question 42

Which of the following statements is true regarding a psychological contract?

A) Structural strategies are implemented with the help of psychological contracts.
B) Psychological contracts are binding in a court of law.
C) Psychological contracts are based on the fact that people feel committed to follow through with their word.
D) Psychological contracts are commonly known as escalated commitments.

Question 43

Which of the following steps can be taken to encourage cooperation in social dilemmas when companies should not privately collude?

A) Use a complex strategy to deal with the situation.
B) Be the first to defect.
C) Focus on your payoffs relative to others.
D) Be sensitive to egocentric bias.

Question 44

In the case of ________,instead of competing for scarce resources (like the right to pollute),companies purchase the rights to pollute or to use scarce resources.

A) regulation
B) privatization
C) tradable environmental allowance arrangements
D) participative management

Question 45

It is generally observed that the public behavior of people is more cooperative than private behavior.So in a negotiation situation you are expecting the negotiators to behave in a cooperative manner,however you observe that the negotiators are bargaining hard and are behaving in a very competitive manner.Which of the following statements can explain this discrepancy?

A) The negotiators are trying to recover from an escalating spiral of defection.
B) The negotiators are using the tit-for-tat strategy.
C) The negotiators are focusing on their own payoffs rather than their payoffs relative to others.
D) The negotiators are bargaining on behalf on their organizations.

Question 46

Discuss the steps to be taken for encouraging cooperation in social dilemmas when companies should not privately collude.

Question 47

Explain how escalation of commitment can be avoided in a negotiation?

Question 48

You are involved in a negotiation and you observe that the negotiations are quickly deteriorating and still the negotiators continue their course of action.Which of the following terms best describes this behavior of the negotiators?

A) the anchoring bias
B) the framing effect
C) the escalation of commitment
D) the hindsight bias

Question 49

________ are punishments that are administered in a community or a group when defection occurs.

A) Sunk costs
B) Social sanctions
C) Escalated commitments
D) Superordinate goals

Question 50

Psychological contracts are commonly known as ________.

A) handshake deals
B) superordinate goals
C) escalated commitments
D) social sanctions