Your firm needs a private investigator and the best private eye in Santa Teresa is Kinsey Milhone. Her services are worth $30,000 to your firm but you do not want to pay her more than $10,000. You tell Kinsey that you cannot pay her more than $10,000 unless you get prior approval from the Board of Directors of your company, and, unfortunately, they just met and won't meet again for 6 months. This strategic move on your part gives you ________ flexibility and ________ bargaining power.
A) less; less
B) less; more
C) more; less
D) more; more

Question

Quizplus · Accepted Answer

By limiting the amount you can offer Kinsey, you have less flexibility. However, by suggesting that you would need approval from the Board of Directors, you are gaining more bargaining power with Kinsey as it appears you are not the final decision-maker and therefore, have less authority to negotiate on her fee. This increases the likelihood that Kinsey will be willing to lower her fee to meet your $10,000 limit.

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