E2: 6 - Negotiations (& some 8)

Question 1

negotiation

Answer 1

discussion b/w 2+ w/ aim of resolving divergent interests

Question 2

characteristics common to negotiations (4)

Answer 2

1. 2+ parties
2. conflict of interest
3. parties negotiate bc they think they can get a better deal than by conceding
4. parties prefer to search for agreement numerous ways

Question 3

“major sins” (4)

Answer 3

1. leaving $ on the table; lose-lose situation
2. settling for too little; winner’s curse
3. walking away from the table
4. settling for terms worse than alt.; agreement bias

Question 4

target point

Answer 4

what you want to achieve

Question 5

resistance/reservation/indifference point

Answer 5

lowest outcome you would accept

Question 6

aspiration range

Answer 6

area b/w target and resistance point

Question 7

if aspiration ranges of negotiators overlaps, ________ can be made

Answer 7

compromise

Question 8

bargaining zone (3)

Answer 8

target point, resistance/res point, and aspiration range

Question 9

BATNA

Answer 9

best alternative to negotiated agreement

should equal reservation point

Question 10

fixed pie perceptions

Answer 10

assuming your interests and the other party’s interests are opposed; 80% negotiators have this perception

prevalent in individualist culture (ex. US) and made worse in high time-pressure situations

Question 11

distributive bargaining perception***

Answer 11

goals of one party are fundamental but in conflict to another party
resources are fixed and limited (fixed pie)

goal= maximizing share of resources

Question 12

keys to effective distributive bargaining (3)**

Answer 12

1. discover other party’s res point
2. push for settlement near opponent’s resistance point
3. get the other party to reduce their resistance point

Question 13

strategies (4)

Answer 13

1. know your BATNA and try to know your opponents
2. set high aspirations
3. make the first offer
4. counteroffer immediately

Question 14

agreements are more favorable when seller makes _____ _____, but consider opponent’s BATNA

Answer 14

first offer

Question 15

framing

Answer 15

how you describe things in terms of wins/losses
ex. Ground Beef 80% Lean vs 20% Fat

Question 16

role of concessions

Answer 16

both parties are bound to give up a bit which may inevitably communicate weakness, but the concession is expected to be reciprocated

Question 17

external attribution

Answer 17

environmental events are to blame

Question 18

internal attribution

Answer 18

ability, motivation, attitude, etc. are to blame

Question 19

self serving bias

Answer 19

tendency to attribute own failures to external factors and own successes to internal factors

Question 20

fundamental attribution error

Answer 20

tendency to judge others failures due to internal factors

Question 21

faul attributions

Answer 21

how we explain actions occurring around us, decision making errors result in
fundamental attribution error
self serving bias

Question 22

hindsight heuristic

Answer 22

out limited ability to reconstruct past states of knowledge leading to underestimation/judgement of past decisions

Question 23

anchoring heuristic

Answer 23

tendency to overvalue/anchor onto the first information suggested for an unknown quantity

Question 24

availability heuristic

Answer 24

tendency to make decisions based on how easy it is to recall data, giving more weight to recent memories

Question 25

why do we stereotype? social identity theory

Answer 25

we put ourselves/others into categories: ingroups vs outgroups
ex. sports teams

Question 26

why do we stereotype? cognitive resource capacity

Answer 26

too much effort to label all individuals uniquely, simplifies cognitive processes

Question 27

stereotyping

Answer 27

assigning characteristics of a group to every individual in that group

Question 28

a subset of representativeness heuristic is ______ ____, where we focus on the most easily recognizable feature and allow it to influence us

Answer 28

saliency bias

Question 29

representativeness heuristic

Answer 29

tendency to make decisions by comparing data to prototypes, allowing stereotypes to over-influence us

Question 30

confirmation heuristic

Answer 30

tendency to seek out info support pre-existing beliefs

Question 31

distributive bargaining, strategies continued: (5)

Answer 31

1. reveal a deadline
2. use objective-appearing rationale to support offers
3. appeal to norms of fairness
4. don;t fall for “even split” plot
5. don’t reveal reservation point

Question 32

integrative bargaining situation

Answer 32

does negotiation contain more than one issue? can other issues be brought in? can deals be made?

Question 33

false perceptions of the “win-win” settlement (3)

Answer 33

compromise
even split
building a relationship

Question 34

integrative bargaining: pyramid