Ben is negotiating a sales contract.The most valuable piece of information Ben can have about the counterparty is ________.
A) the counterparty's target point
B) the negotiator's surplus expected by the counterparty
C) the counterparty's reservation point
D) the bargaining surplus expected by the counterparty

Question

Quizplus · Accepted Answer

Knowing the counterparty's reservation point is the most valuable piece of information for Ben because it represents the lowest price or highest price they are willing to accept, which will give Ben some leverage in negotiating a good deal. The target point and bargaining surplus expected by the counterparty are also important but not as critical as knowing their reservation point, while the negotiator's surplus expected is more relevant for the counterparty than for Ben.

Ben Is Negotiating a Sales Contract