Class 11 - Negotiation

Question 0

Major negotiation sins?

Answer 0

Leaving $ on table
Walking away
Settling for worse terms than alternative

Question 1

Characteristics common to all negotiations?

Answer 1

2 or more parties
Conflict of interest
Chance to get a better deal by taking what other side will give
Searching for agreement if preferable to fighting, breaking off contact, arbitration, etc
Chance to resolve both tangible and intangible questions

Question 2

Negotiation myths?

Answer 2

Good negotiators are born
Experience is a great teacher
Good negotiators take risks
Good negotiators rely on intuition

Question 3

What is your reservation point?

Answer 3

Your bottom line / walk-away point

Also known as your BATNA (best alternative to negotiated agreement) + - things that make you want deal

Question 4

What is the ZOPA (zone of potential agreement)?

Answer 4

Space between to parties reservation points; can be negative

Question 5

How do you frame the negotiation in distributive bargaining?

Answer 5

Make the first offer, make an aggressive offer, nor going beyond reservation point. Use objective appearing rationale, appeal to fairness norms, and don’t fall for “even split” ploy