Chapter 13.4 Negotiation

Question 1

Negotiation

Answer 1

a decision-making process among interdependent parties who do not share identical preferences

Question 2

Types of Negotiation

Answer 2

Distributive and Integrative

Question 3

Distributive Negotiation

Answer 3

Effective in single-issue negotiations where relationships are less critical
o Focuses on a zero-sum, win–lose situation where a fixed “pie” is divided.

Question 4

Integrative Negotiation

Answer 4

Foster trust, creativity, and long-term collaboration, often leading to superior outcomes.
o Aims for a win–win outcome by expanding the “pie” through mutual problem-solving.

Question 5

BATNA

Answer 5

Best Alternative To a Negotiated Agreement

Question 6

Integrative Strategies

Answer 6

• Build trust and share information
• Emphasize commonalities and minimize differences
• Ask lots (and lots) of questions (try to get a good understanding of the other’s real needs and objectives)
• Give away some information
• Make multiple offers simultaneously
• Search for a novel solution that meets goals of both sides

Question 7

Common Mistakes in Negotiation

Answer 7

Mistake #1: Irrational Escalation of Commitment
o Continuing a previously chosen course of action beyond what a rational analysis would recommend

Mistake #2: Belief in the Mythical Fixed-Pie
o The assumption that your own interests directly conflict with the other party
o Leads to “win-lose” thinking

Mistake #3: Anchoring and Adjustment
o An anchor is a standard against which future adjustments are measured