Deck 7: Decision Making: Are We Truly Rational Beings?

Question 1

In order to be effective in influencing the terms a negotiator will accept,an anchor cannot be set arbitrarily.

Answer 1

False

Question 2

When preparing for her yard sale,Betty overinflated the price of her favorite doll from childhood because she was so emotionally attached to it.A potential buyer offered a price that Betty thought was too low,but Betty said she would compromise and meet the potential buyer in the middle of their two offers.The potential buyer,who was a doll expert,told Betty the price was still too high based on its market value.Betty still thought the price she set was reasonable and that the potential buyer was trying to deceive her,and she would not lower her price.The price that Betty asked for the doll was influenced by:

A)Unrecoverable costs.
B)Framing
C)Selective attention
D)The endowment effect.

Answer 2

D

Question 3

It is not advisable to focus on one issue when negotiating integratively because it prevents negotiators from searching for and finding mutually beneficial tradeoffs.

Answer 3

True

Question 4

Biases are mainly:

A)Stereotypes.
B)Unconscious.
C)Confirmation traps.
D)Conscious.

Question 5

Mispredicting the intensity or duration of the pleasure or pain that future events will bring is which of the following emotional errors?

A)Mood.
B)Anger.
C)Competitive arousal.
D)Impact bias/miswanting.

Question 6

Paul is a negotiator who keeps distracting the other party's attention from multiple issues in order to get the other party to pay attention to the one issue that is most important to Paul.Paul is attempting to use ???__________ to his advantage.

A)Focalism.
B)Extremisn.
C)Reactive devaluation.
D)Ignoring others' cognitions.

Question 7

The "fixed pie" assumption is related to:

A)The extremism bias.
B)Unrecoverable costs.
C)High levels of competitiveness.
D)Emotional biases.

Question 8

Perceptual decision-making errors can be caused by faulty perceptions of social entities and situations.

Question 9

Reactive devaluation is an example of:

A)Cognitive bias.
B)Perception error.
C)Emotional bias.
D)Extremism.

Question 10

John booked a flight on Fly-by-Night airline even though he had a horrible experience landing several hours late on the airline the last time he flew to Chicago.He could have booked the flight on another airline that he preferred over Fly-by-Night because the service was always impeccable and because it almost always arrived on time.But he had generated enough points after his previous flight on Fly-by-Night for a free round trip ticket and he had to use them or lose them within the next six months.John's decision to fly on Fly-by-Night is an example of:

A)Being unable to ignore sunk costs.
B)Selective attention.
C)Anchoring.
D)Availability bias.

Question 11

12____________________ contribute to ignoring sunk costs.

A)Confirmation trap / selective attention.
B)Illusion of transparency / extremism.
C)Fundamental attribution error / perspective taking.
D)Impact bias / expectations.

Question 12

Overconfidence may be caused by:

A)The availability bias.
B)Competition.
C)Impression management.
D)Inadequate preparation.

Question 13

We often estimate the value of uncertain objects or events using information that is irrelevant because it happens t_________.

A)Rational.
B)Anchored.
C)Consistent.
D)Easily recallable.

Question 14

Irrational escalation of commitment is an example of:

A)Cognitive bias.
B)Emotional bias.
C)Perception error.
D)Extremism.

Question 15

People are generally pretty good at figuring out what they are feeling.

Question 16

If negotiators were rational they would:

A)Always reach an agreement with a negative ZOPA.
B)Never reach an agreement with a negative ZOPA.
C)Not need a ZOPA.
D)Ignore ZOPAs.

Question 17

The tendency to overestimate the extent to which others can discern our thoughts and objectives is called:

A)Perspective taking.
B)The illusion of transparency.
C)The fundamental attribution error.
D)An expectation bias.

Question 18

Anchors:

A)Are not very influential on how we think,subsequent to the anchor being set.
B)Are very influential on how we think,subsequent to the anchor being set.
C)Change easily.
D)Are rarely adjusted.

Question 19

Impact bias is an example of:

A)Cognitive bias.
B)Perception error.
C)Emotional bias.
D)Extremism.

Question 20

People's strong desire to be consistent is an example of impression management.

Question 21

Schemata simplify information processing and decision making.

Question 22

Perspective taking is an asset to a negotiator.

Question 23

Having an audience enhances the effectiveness of a negotiator.

Question 24

What are the three basic categories of decision-making errors that can reduce a negotiator's effectiveness during a negotiation? Describe the origin of each and how they affect the outcome of a negotiation.

Question 25

What can negotiators do to minimize the consequences of perceptual biases?

Question 26

The preparation stage is too early in the negotiation process to account for and plan on how to reduce biases.

Question 27

We are usually aware of cognitive biases when they occur,though we are not usually aware of emotional biases when they occur.

Question 28

What does it mean to use a positive frame in a negotiation and what are the benefits of using positive framing? Give an example of using a positive frame.