Negotiation 1
1) What is the dilemma of openness?
a. there is a need to share information but also a risk to sharing information
b. degree of risk can shift throughout the conversation
b. degree of risk can shift throughout the conversation
1) As the terms were discussed in class, what is the difference between common value and specific value?
a. Common value (market) is what a third party would say it be.
b. Specific value (need) is what the value of something is to a specific person for a specific circumstance.
c. if value not same way it is an opportunity for the seller
b. Specific value (need) is what the value of something is to a specific person for a specific circumstance.
c. if value not same way it is an opportunity for the seller
1) Why is interdependence an important concept in negotiation?
a. They need each other.
b. Both Parties believe they benefit more from negotiating than not.
b. Both Parties believe they benefit more from negotiating than not.
1) As the term was discussed in class, what is the optimistic opening?
a. The most ambitious offer you can make with support to plausible logic
b. You would like your offer to be discussible/able to be supported
c. Advantages: Based on Distance between target/initial, you get more to work with, you conceal your true resistance point
d. Disadvantage: Appears aggressive, combative; may make seem as if no deal is possible
b. You would like your offer to be discussible/able to be supported
c. Advantages: Based on Distance between target/initial, you get more to work with, you conceal your true resistance point
d. Disadvantage: Appears aggressive, combative; may make seem as if no deal is possible
1) In the reading Investigative Negotiation, the authors recommend approaching a negotiation in a similar manner as a detective approaching a crime scene. Why?
a. To uncover information about the other party’s constraints, interests, and priorities.
1) As discussed in class, what is a bargaining zone (also termed a “zone of potential agreement”)?
a. Range both parties could live with the agreements
b. distance between initial offer and resistance point
c. exists but you may not always have that information
d. It may not always be best to squeeze out every dime especially if you want to maintain a relationship in the long term
e. Sometimes the initial offer can give a clue for resistance point
f. don’t give away any more of BZ than you need to
g. do your research!
b. distance between initial offer and resistance point
c. exists but you may not always have that information
d. It may not always be best to squeeze out every dime especially if you want to maintain a relationship in the long term
e. Sometimes the initial offer can give a clue for resistance point
f. don’t give away any more of BZ than you need to
g. do your research!
1) In negotiation, we need a difference between our target point and our initial offer. Why?
a. To create a bargaining zone.
b. Advantages: Based on Distance between target/initial, you get more to work with, you conceal your true resistance point
1) As discussed in our reading, Developing Strategies for Asking Questions in Negotiation, what is the logic behind the use of the clearinghouse probe?
a. Getting info you may not otherwise ask about.
b. The questioner is placing the responsibility for sharing relevant information on the answerer.
c. If something new comes up later, you will feel as if that person is not trustworthy. The more specific, the better.
d. “Is there anything else about your pricing structure/delivery process/credit terms, that I need to know?”
b. The questioner is placing the responsibility for sharing relevant information on the answerer.
c. If something new comes up later, you will feel as if that person is not trustworthy. The more specific, the better.
d. “Is there anything else about your pricing structure/delivery process/credit terms, that I need to know?”
1) As discussed in our reading, Developing Strategies for Asking Questions in Negotiation, what are the benefits of using the hypothetical question?
a. ask for info without making a commitment
b. helpful to ask for info hard to get from other angles
c. The questioner can request information without asserting that the presumption is true. It allows the questioner to solicit the information without making a commitment to follow through with the presupposition.
d. “What-If”
b. helpful to ask for info hard to get from other angles
c. The questioner can request information without asserting that the presumption is true. It allows the questioner to solicit the information without making a commitment to follow through with the presupposition.
d. “What-If”
1) As discussed in our reading, Developing Strategies for Asking Questions in Negotiation, what is the “open to closed switch”?
a. Open” questions are those that give the respondent considerable freedom in how to respond and how much information to provide
b. “closed” questions restrict the answerer to fewer options. Funnel of questions begins with open and narrows down to close.
b. “closed” questions restrict the answerer to fewer options. Funnel of questions begins with open and narrows down to close.
1) What is the leverage of legitimacy?
a. Controlling the context
b. Appearance of being legitimate or official
b. Appearance of being legitimate or official
1) What is the “Be Back” form of leverage?
a. Let me think about this; I’ll be back
b. Could gather more info
c. Look more closely at things
d. Hope for a double concession
e. Can change your best alternative
b. Could gather more info
c. Look more closely at things
d. Hope for a double concession
e. Can change your best alternative
1) What is the logic behind the use of the fait accompli form of leverage?
a. One party begins to act as if the deal has been completed to see if the other party will go along.
b. finessed by action
c. people sometimes follow the Path of least resistance instead of causing conflict
b. finessed by action
c. people sometimes follow the Path of least resistance instead of causing conflict
1) Explain the leverage of limited authority.
a. I cant do that, my boss won’t let me.
b. Unlevelled playing field
c. Pressure is on one person to make concessions
b. Unlevelled playing field
c. Pressure is on one person to make concessions
1) In the reading Investigative Negotiation, the authors recommend approaching a negotiation in a similar manner as a detective approached a crime scene. Why?
a. To uncover information about the other party’s constraints, interests, and priorities.
1) In the context discussed in class, what does the term “leave money on the table” mean?
a. Leaving opportunity and value behind as not part of the deal.
b. You can make a better agreement without coming at the company’s expense.
c. Anything less than the green line
d. 2/3 leave money on the table (estimate.) Very common
b. You can make a better agreement without coming at the company’s expense.
c. Anything less than the green line
d. 2/3 leave money on the table (estimate.) Very common
1) What is the #1 (most important) advantage that a negotiator could have?
a. Being able to walk away and be content with whatever happens.
1) What is meant by the term “create value”?
a. Making sure you have the “biggest pie” possible
b. 85% negotiators go in thinking that the main task is to divide value. Period. “fixed pie bias/assumption” instead of realizing there’s a way for someone to maximize their value without coming at the other’s expense
b. 85% negotiators go in thinking that the main task is to divide value. Period. “fixed pie bias/assumption” instead of realizing there’s a way for someone to maximize their value without coming at the other’s expense
1) What are the minimum criteria needed to create value?
a. Multiple Issues
b. Different Priorities
b. Different Priorities
1) As discussed in class, what is a best alternative to a negotiated agreement (BATNA)?
a. What you will have if you cannot negotiate an agreement.
b. standard of comparison
c. only negotiate if it will improve your position
d. anything better is a gain
e. anything worse you should not accept
f. more attractive BATNA is to you, the less you must concede
g. the less attractive your BATNA, must be more willing to make concessions
b. standard of comparison
c. only negotiate if it will improve your position
d. anything better is a gain
e. anything worse you should not accept
f. more attractive BATNA is to you, the less you must concede
g. the less attractive your BATNA, must be more willing to make concessions
1) What is the #1 most important factor in deciding if a negotiator prefers to make the first offer or prefers to get the counterpart to make the first offer?
a. Having the knowledge of determining whether the bargaining zone can be approximated.
b. When should want to make the first offer? If you can approximate the bargaining zone, you do want to go first.
c. When should not want to make the first offer? If you can’t because you don’t want to make the mistake of missing out on money by giving the BZ away.
d. Sometimes you don’t want to, but the other person will not.
b. When should want to make the first offer? If you can approximate the bargaining zone, you do want to go first.
c. When should not want to make the first offer? If you can’t because you don’t want to make the mistake of missing out on money by giving the BZ away.
d. Sometimes you don’t want to, but the other person will not.
1) What is the difference between trade-off issues and zero-sum issues?
a. Trade-off issues are what we want is different and the importance we place on the issue is different.
b. Zero-sum issues are what we want is different but the importance we place on the issue is the same.
c. Priorities are the difference.
d. Trade-Off Issues: move to the extremes/optimize your trade
e. Zero-Sum Issues: move towards the middle/optimize the trade
f. If you only have 1 issue, de-facto zero-sum
g. Ideal Goal
i. Recognize and fully benefit from the compatible issues
ii. Recognize and trade on the trade-off issues (Go to extremes)
iii. Recognize and compromise on the zero-sum issues(Move to the middle ‘to some extent’) Sometimes one side doesn’t deserve as much
h. 7% of negotiators think to ask the other party about their priorities
b. Zero-sum issues are what we want is different but the importance we place on the issue is the same.
c. Priorities are the difference.
d. Trade-Off Issues: move to the extremes/optimize your trade
e. Zero-Sum Issues: move towards the middle/optimize the trade
f. If you only have 1 issue, de-facto zero-sum
g. Ideal Goal
i. Recognize and fully benefit from the compatible issues
ii. Recognize and trade on the trade-off issues (Go to extremes)
iii. Recognize and compromise on the zero-sum issues(Move to the middle ‘to some extent’) Sometimes one side doesn’t deserve as much
h. 7% of negotiators think to ask the other party about their priorities
1) What is the Pareto optimal agreement?
a. If you are South of the graph line of optimal agreement, there was a way for either one or both parties to do better without hurting where the deal already is.
1) How do deadlines affect negotiation?
a. People make concessions as deadline approaches that they would not have made otherwise.
b. They apply pressure to get the negotiation complete.
b. They apply pressure to get the negotiation complete.
1) The instructor has used an analogy to a 500-piece jigsaw puzzle to describe information in a negotiation. Explain this analogy.
a. There is a lot of information needed to piece together a negotiation; however, you do not need all the information together to begin to see the picture that the information in the negotiation is creating.
b. It’s like a jigsaw puzzle, the more pieces you have, the easier it is to see the big picture.
b. It’s like a jigsaw puzzle, the more pieces you have, the easier it is to see the big picture.