Ch 2 Key Additional Notes Flashcards
a quantification (dollars or other) of the negotiator’s BATNA
reservation point
the tendency to value object more when they own it
endowment effect
what you consider the value of a negotiation despite if you or your counterpart own it
valuation
a claim made by one party and rejected by another
dispute
T or F: Never accept a contract less than your BATNA, you BATNA can and should change as negotiation and leverage evolve
True
a negotiators ideal outcome for agreement
target point
BATNAs are determined by _______ reality.
objective
money already spent or allocated by contract
sunk cost
Single issue negotiations are _____ _____
fixed sum (distributed)
Single issue negotiations can be expanded to _______ negotiation potential by adding outcomes
integrative
T or F: Negotiators who focus on minimizing their losses are more likely to make few concessions and reach fewer agreements.
True
The more _____- _______ a negotiator is, the more likely they will make less concessions
risk-averse
T or F: Negotiators who face negative loss frame mindset will usually out gain negotiators with a positive gain frame mindset
True
Negotiators who operate based on their counterparty’s _______ > than counterparty’s _______ about a negotiation
thinking; feelings
A counterparty’s _______ is considered the most important information to have or find out
BATNA
how previous negotiations impact future negotiations (long term)
The linkage effect (KNOW THIS)
Concessions (increase/decrease) as negotiation close in on deadlines
increase
Negotiators with a Fixed-Pie mindset tend to soft bargain(_______), hard bargain(______) or midpoint(_______)
an agreement
capitulation; attack; compromise
You should approach negotiations as a ______ ______ vs Fixed Pie
mixed motive
where the 2 agreement’s overlap
bargaining zone (ZOPA)
The belief that the counterparty’s interests are directly and completely opposed to one’s own
fixed-pie perception
The negotiations that take place behind the scenes between a principal and his or her constituents
hidden table
A transaction between parties that only occurs once and no future ramifications accrue to either party
one-shot negotiation
Approval of a contract by a body or group not necessarily present at the negotiation table
ramification
The point at which a negotiator is indifferent between reaching a settlement and walking away from the bargaining table
reservation point
Money invested that cannot be recovered
sunk costs
The ideal or upper limit of what a negotiator expects to get out of a negotiation. Also called the aspiration or aspiration point
target point
A situation in which a negotiator makes an offer or requests something that is immediately
accepted by the opponent
winner’s curse
ZOPA stands for:
Zone of Possible Agreement (bargaining zone)
