Chapter 2

Question 1

What are the features of a distributive bargaining situation?

Answer 1

-the goals of 1 party are in fundamental, direct conflict to another party
-resources are fixed and limited
-both parties want to maximize their gains

Question 2

How should you prepare for a negotiation?

Answer 2

-define a starting/asking price, initial offer
-set a target point, aspiration point
-define the walkaway, resistance point (bottom line)

Question 3

What is a Bargaining Range?

Answer 3

Bargaining Range is the same as the Settlement Range which is the same as the Zone of Potential Agreement (ZOPA)–the spreads between the resistance pts. where bargaining actually takes place

Question 4

What is the role of alternatives to a negotiated agreement?

Answer 4

alternatives give the negotiator power to walk away from the negotiation

Question 5

the keys to implementing any strategies

Answer 5

discovering the other party’s resistance point & research

Question 6

4 props that affect the bargaining process

Answer 6

1. the higher the other party’s estimate of your cost of delay or the deal being aborted, the stronger the other party is resistance point will be
2. the higher the other party’s estimate of this or her own cost of delay or impasse, the weaker the other party’s resistance point will be
3. the less the other party values an issue, the lower their resistance point will be
4. the more the other party believes that you value an issue, the lower their resistance point may be

Question 7

4 tasks in distributive situations

Answer 7

1. Assess the other party’s target, resistance point, and costs of terminating negotiations
2. Manage the other party’s impressions
3. Modify the other party’s perceptions
4. Manipulate the actual costs of and delay the termination

Question 8

Positions taken during negotiations

Answer 8

1. Opening offers: where will you start?
2. Opening stance: what is your attitude (competitive/moderate)?
3. Initial concessions: should any be made? if so, how large?
4. The Role of Concessions: w/o concessions there is either capitulation (surrendering) or deadlock
5. Patterns of concession making: the pattern contains valuable information
6. Final offers (making a commitment): “this is all I can do” or “this is as far as I can go”

Question 9

Closing the deal

Answer 9

A. Provide alternatives (2 or 3 packages)
B. Assume the clause
C. Split the difference
D. Exploding Offers
E. Deal Sweetness