Negotiation Key Terms

Published by admin on

Best Alternative to a Negotiated Agreement
Consensus Conflict
Occurs when one person’s opinions, ideas, or beliefs are incompatible with those of another, and the two seek to reach an agreement of opinion
Contractual Risk
Refers to the risk associated with the willingness of the other party to honor its terms
Counterfactual Thinking
mentally changing some aspect of the past as a way of imagining what might have been
Dispute Situation
A negotiation that takes place because a claim that has been made by one party has been rejected by another party.
Fixed-Pie Perception
Belief that the other party’s interests are directly and completely opposed to one’s own interests
Focal Point
Salient number, figure, or value in a negotiation that appears to be valid but is actually arbitrary and/or has no basis in fact.
Hidden Table
The negotiations that take place behind the scene between a principal and his or her constituents.
Linkage Effects
A phenomenon that refers to the fact that some negotiations will affect other negotiations; i.e., resolutions in one situation will have implications for a future situation.
Monolithic Party
A member of a group that acts as a single unit; i.e., there is no divergence within the group.
A participant in negotiation. Parties can be individuals, groups, organizations, communities, or nations.
Preference Reversals
Inconsistencies in choice that are produced when subtle wording differences lead people to make different judgments.
Approval of a contract by a body or group not necessarily present at the negotiation table.
Reactive Devaluation
The tendency for people to devalue an option previously considered to be more attractive, merely as a consequence of it being offered by the other side.
Reservation Point
The point at which a negotiator is indifferent between reaching a settlement and walking away from the bargaining table.
Risk Aversion
Preference for a sure thing rather than a gamble that has an equal or greater expected value.
Scarce Resource Competition
Conflict or competition that exists when people perceive one
another as desiring the same limited resources.
Strategic Risk
The relative risk levels of the tactics that negotiators use at the bargaining table.
Sure Thing Principle
A principle that states that if alternative x is preferred to y, in the condition that some event, a, occurs, and if x is also preferred to y in the condition that some event, a, does not occur, then x should be preferred to y, even when it is not known whether a will occur.
Target Point
The ideal or upper limit of what a negotiator expects to get out of a negotiation. Also called the aspiration or aspiration point.
Time Horizon
The amount of time between the negotiation and the consequences or realization of negotiated agreements.
Winner’s Curse
A situation in which a negotiator makes an offer that is immediately accepted by the opponent, thus signaling the fact that the negotiator offered too much.
Anchor Point
Number, figure, or value that becomes a salient point of reference in a negotiation.
Bargaining Surplus
The amount of overlap between parties’ reservation points.
Bargaining Zone
The region between parties’
reservation points in which a final settlement should be obtained.
A bargaining style named for Lemuel Boulware, former CEO of General Electric, in which one’s first offer is one’s final offer.
Equality Rule
A principle that prescribes equal shares for all.
Equity Rule
A principle that prescribes that distribution of resources should be proportional to a person’s contribution.
Face-Threat Sensitivity
Likelihood that a negotiator will have a negative reaction to a
threat to his or her public image, reputation, or status vis-à-vis other people in the negotiation
Graduated Reduction in Tension Model
Unilateral conciliatory actions designed to deescalate a conflict.
A person who prefers to split resources equally, except in antagonistic relationships.
Magnitude of Concessions
Extent to which one party has conceded from an initial stated
Mixed-Motive Negotiation
A negotiation in which parties want to cooperate with their opponent
to reach mutual agreement, but must compete to maximize their share of the joint gains.
Needs-Based Rule
A rule that states that the benefits people receive should be proportional to their needs; also called welfare-based allocation.
Negative Bargaining Zone
A negotiation situation in which there is no positive overlap between parties’ reservation points.
Negotiation Dance
The process of making offers and counteroffers in a negotiation.
Negotiator’s Surplus
The positive difference between the settlement outcome and the negotiator’s reservation point.
Pattern of Concessions
In negotiation, the sequence of consecutive concessions made by parties.
Ruthless Competitor
A person who prefers to have more resources than the other party, regardless of relationship.
In negotiations, a person who prefers to split resources equally no matter whether the relationship with another party is positive, negative, or neutral.
Suboptimal Outcome
In negotiation, an outcome in which negotiators leave money on the table, reach an impasse, or are generally worse off not reaching agreement than reaching agreement.
Timing of Concessions
In negotiation, determination of whether concessions are immediate, gradual or delayed.
Contingency Contracts
Agreements wherein negotiators make bets based on their differences in beliefs, forecasts, risk profiles, and interests.
False Conflict
A situation in which conflict does not exist between people, yet they erroneously perceive the presence of conflict.
Illusion of Transparency
The tendency of negotiators to believe that they are revealing more information than they actually are; i.e., they believe that others have access to information about them when they in fact do not.
Inductive Reasoning
The process by which a negotiator unilaterally deduces what the other party’s true interests are and where the joint gains are by listening to their responses in negotiation.
Integrative Negotiation
A process by which negotiators seek to expand the amount of available resources.
Issue Mix
The union of both parties’ issue sets.
The strategy of trading off in a negotiation so as to capitalize on different strengths of preference.
Lose-lose effect
The tendency for negotiators to settle for outcomes that both prefer less than some other readily available outcome.
Multiple Simultaneous Offers
A strategy that involves a negotiator simultaneously presenting the other party with two or more proposals of equal value to him-or herself.
Pareto-Optimal Frontier
A situation in which no other feasible agreement exists that would improve one party’s outcome while simultaneously not hurting the other party’s outcome.
Postsettlement Settlements
Strategies in which negotiators reach a binding settlement, but agree to explore other options with the goal of finding another that both prefer more than the current one; if one is not found, the current settlement is imposed.
Premature Concessions
Making concessions on issues before they are even requested.
Presettlement Settlements
Formal, partial settlements that occur in advance of the parties’ undertaking full-scale negotiations, designed to be replaced by a long-term, formal agreement.
Resource Assessment
The identification of the bargaining issues and alternatives in a negotiation.
Arguments for one’s own position or against the other’s position in a negotiation.
Division of large, all-encompassing issues into smaller, more manageable ones.
Win-win Negotiation
Negotiations in which the parties craft outcomes that are better for both sides than an even split (dividing resources in half).
Deductive Reasoning
reasoning in which a conclusion is reached by stating a general principle and then applying that principle to a specific case (The sun rises every morning; therefore, the sun will rise on Tuesday morning.)
Categories: Negotiation