Chapter 4: Integrative Negotiation- Expanding the Pie Flashcards
Most negotiators are motivated to search for integrative or win-win agreements because they involve the creation of ______ ______.
Unfortunately, many negotiators hold ______ _______
that prevent the discovery and creation of integrative
agreements.
mutual gain; faulty assumptions
(Negotiators are more motivated for integrative negotiations bc they get more out of it)
What are the 2 things that get in the way of reaching a win-win agreement (prevent it from happening)?
- False conflict
- Fixed-pie perception
Negotiators believe their interests are incompatible when they actually share compatible interests (the lose-lose effect)
false conflict
Belief that the counterparty’s interests are directly opposed to one’s own interests
fixed-pie perception
- _________ negotiation focuses on how negotiators DIVIDE resources.
- ________ negotiation relies to how negotiators CREATE the resources that will ultimately be divided.
- distributive
- integrative (win-win)
(bringing things in (resources) to expand the negotiation)
_______ refers to reaching a middle ground between negotiators’ positions.
compromise
_______ _______, like compromises, refer to how the bargaining
zone is divided among the negotiators, but agreeing to an
even-split of resources does NOT signal that the agreement is
a win-win for both parties.
even splits
(this is not negotiating, this is compromising. compromising is bad)
Truly integrative agreements are ones in which all opportunities are leveraged so that no resources are left on the table – we call these outcomes ______ ________.
pareto optimal
(pulling in every resource that’s out there)
What are the 4 strategies that can help negotiators create integrative potential?
- Identify multiple issues → do this by figuring out people’s interests and priorities (I’s & P’s)
- Bring additional issues into the negotiation. (ex: Congress writes a law for our country. A lot of times they will start with a main topic. The next thing you know, they bring in additional things to put in this bill and then they pass it.)
- Allow side deals to increase creative conflict resolution.
- Capitalize on differing strengths of preference for the varied issues.
The following 7 strategies can help negotiators expand the pie and create win-win agreements:
- Separate positions from interests
- Perspective taking
- Ask questions about interests and priorities
- Reveal information about interests and priorities
- Unbundle the issues
- Value-added trade-offs (logrolling)
- Multi-Issue Offers
concept of giving something up that is of less value to you that may be of more value to the person you’re negotiating with, in order to jump on the next log of something that is more valuable
logrolling
What does MESO stand for, which is another strategy that can help expand the pie?
Multiple Offers of Equivalent Value Simultaneously
The MESO strategy is threefold:
- Devise _____-______ offers.
- Devise offers that are all of _____ _____ to yourself.
- Make all of the offers at the _____ _____.
- Tell the counterparty they cannot _____ ______ the best parts from different offers.
- multiple-issue
- equal value
- same time
- cherry pick
(think of job offer benefit package example from class– salary + salary benefits + vacation bump, etc.)
What are 3 advantages of MESOs?
They can:
1. be more aggressive in anchoring
2. gain better information about the counterparty
3. signal their priorities more effectively
It is the enlightened negotiator who knows that differences, rather than commonalities, can be more advantageous in negotiations and have potential to create greater value.
Capitalizing on differences often entails _______ _______, wherein negotiators make bets based upon different world occurrences
contingent contracts
(You want A to happen, but it can’t happen without B happening first.
Ex: A is wanting to buy a house in Birmingham, the contingency is B: you have to get hired in Birmingham.
A will take place after B takes place.)
With contingent contracts, you want to make sure you don’t have any differences in ______– make sure the price is good.
valuation
(same thing with expectations, risk attitudes, time preferences, and capabilities)
For contingent contracts to be effective, they should satisfy the following criteria:
1. They should not create a _______ __ _____.
2. They should focus on the ______, not just on making bets.
3. They should be ______ and may therefore require a written contract.
4. They should be clear, _______, and readily evaluated
- conflict of interest
- negotiation
- enforceable (not a handshake or verbal)
- measurable
An agreement that you make in advance of the terms being worked out.
Pre-settlement settlements (PreSS)
(ex: college coaching hires example. Person becomes coach at Auburn before terms are worked out bc both Auburn and the person wants that, and then they will figure out the terms afterwards)
What are the 3 characteristics of pre-settlement settlements?
They are:
1. formal (they encompass specific, binding obligations)
2. initial (they occur in advance of the parties undertaking full-scale negotiations and are designed to be replaced by long-term agreement)
3. partial (the parties don’t address or resolve all outstanding issues)
when negotiators agree to explore other options with the goal of
finding another option that both prefer more than the current agreement.
Post-Settlement Settlements
(Where there’s a contract written up and it’s agreed upon, but both parties agree that the contract isn’t ideal and should be rewritten over time. Both sides want to improve (re-negotiate) the contract.)
T or F: Because they can safely revert to their previous agreement, the post-settlement settlement strategy allows both parties to reveal their preferences without fear of
exploitation.
True
a single salient coordinating concept,
shared by negotiators; main focus of the conversation between negotiators.
focal point
a departure that takes place during the course of negotiation, when the trajectory seems to change.
turning point
What are the 5 major components of the decision-making model of integrative agreements?
- Resource assessment
- Assessment of differences
- Offers and trade-offs
- Acceptance/rejection decision
- Prolonging negotiation and renegotiation
All negotiators want to reach win-win agreements, yet most fail to do so resulting in ______ and ______ being left on the table.
money; resources
Negotiators are usually not aware that their negotiated outcomes are ________.
suboptimal
Key reasons for lose-lose outcomes are ______ _______ and the ____-_____ perception.
illusory conflict; fixed-pie
T or F: In attempts to expand the pie, negotiators should not forget
about claiming resources.
True
