chapter 3 Flashcards
the bargaining zone
The bargaining zone, or Zone of Possible Agreements
(ZOPA), represents the range between each party’s
reservation points.
positive bargaining zone
In a positive bargaining zone, negotiators’ reservation points
overlap.
negative bargaining zone
there is no positive
overlap between the parties’ reservation points; therefore, parties should pursue other alternatives rather
than spending fruitless hours trying to reach an
agreement.
the bargaining surplus
The bargaining surplus is a measure of the value that a negotiated agreement offers to both parties
compared to the value of not reaching a settlement
the chilling effect
an occur when negotiators make
proposals the counterparty considers extreme and can
cause the counterparty to be offended and walk away.
the winner’s curse
occurs when the negotiator’s first
offer is immediately accepted by the counterparty, signaling that the negotiator did not set his or her
aspirations high enough.
first mover advantage
The first-mover advantage in negotiation refers to the benefits a party gains by taking the initiative and making the first offer or proposal in a negotiation. This strategy can shape the discussion and anchor the negotiation process around the initial terms, potentially influencing the final outcome in favor of the first mover
the anchoring information model (AIM)
hey serve as anchors that pull final settlements toward the initial first-offer value (anchoring).
concessions
he reductions that a negotiator makes during the course of a negotiation
concession reciprocity
he tendency of negotiators to reciprocate concessions vs
Concession aversion: the tendency for some negotiators to be disinclined to make
concessions
Concession aversion
the tendency for some negotiators to be disinclined to make
concessions
unilateral concessions
the tendency for some negotiators to be disinclined to make
concessions
bilateral concessions
the tendency for some negotiators to be disinclined to make
concessions
premature concessions
when one party makes more than one concession in a row before
the other party responds or counteroffers
the graduated reduction in tension (GRIT)
method in which parties avoid
escalating conflict to reach mutual settlement within the bargaining zone
