Integrative Negotiations

Question 1

Integrative Negotiations

Answer 1

typically involves multiple issues
- generally longer-term and interest in maintaining future relationship

Question 2

Integrative neg. - variable sum or expandable pie

Answer 2

win-win situation: both parties have opportunities to integrate their goals to create more value

Question 3

Integrative neg. -Mutual Interest

Answer 3

each party can benefit without necessarily harming the other

Question 4

negational issues: distributive neg.

Answer 4

zero sum: parties’ interests are directly opposed

Question 5

negotiable issues- compatible

Answer 5

both parties want the same outcome

Question 6

negotiable issues: Integrative- variable sum

Answer 6

variable sum: parties’ interests are prioritized differently which creates opportunities for mutual gain

Question 7

Not Pareto- Efficiency

Answer 7

an agreement is not pareto-efficient if there are deals where
- both parties could have been better off
- one party could have been better off without harming the other party

Question 8

Pareto- Efficiency Agreement

Answer 8

All of the issues have been allocated in the most efficient manner
- maximized the pie. In a PEA, one part can only achieve a better outcome by hurting the other party

Question 9

Pareto-Efficient ≠ Pareto-Equity

Answer 9

• creating value is not the same as claiming it
• it still up to negotiator to claim their portion of the pie after maximizing the pie

Question 10

lemonade stand ex

Answer 10

what is it

Question 11

PARETO-EFFICIENT FRONTIER

Answer 11

high on y axis (candidate’s outcomes) - outcomes the favor candidates
high on x axis (Recruiter’s outcomes)- outcomes that favor recruiter candidates

Question 12

(info sharing tips) reveal priorities cautiously

Answer 12

• generally okay to share which issues matter (ranking) but not how much they matter (weight)
• avoid expressing strong preferences for specific options. I have to be in SF

Question 13

(info sharing tips) maintain Flexibility

Answer 13

okay to be firm on interests but remain open to alternatives that might emerge
- do not dismiss opportunities for trade offs

Question 14

Package (integrative) approach

Answer 14

• discussing multiple issues together
• often induces more cooperation and willingness to trade-off
• creates a sense of flexibility

Question 15

MESO: Multiple equivalent simultaneous offer

Answer 15

presenting different packages with equal value to other parties and seeing what they prefer

Question 16

Benefits of MESO

Answer 16

• requires little cooperation from other side
• allows you to gather information about other party’s interests
• maintains sense of flexibility

Question 17

Trust and collaborative relationship Internegative strategies

Answer 17

-build trust and collaborative relationships with other party
- initial focus should be on expanding the pie
- identify a potential compatible issue

Question 18

Provide and Gather Internegative strategies

Answer 18

about interests and priorities
- ask diagnostic question and not a yes or no questions

Question 19

Mutually beneficial trade offs integrative strategy

Answer 19

• concede low priority issues in exchange for high priority issues
• make multiple equivalent simultaneous offers

Question 20

Purpose of Negotiation

Answer 20

• create and gain additional value relative to your reservation price

Question 21

most negotiations

Answer 21

are integrative rather than distributive.
- require creativity: you can always add more issues to the negotiation table

Question 22

tips

Answer 22

• do not have to win, collaborate
• not a single best style, most prepared wins
• best negotiators are problem solvers, identify tradeoffs

Question 23

How can each party simultaneously create and claim value

Answer 23

tension

Question 24

Tension: efforts to create value

Answer 24

are vulnerable to claiming tactics.
ex: oversharing info about preferences can create vulnerability

Question 25

Tension: Tactics for claiming value

Answer 25

can impede creating value.
ex: lying or making a fake concession can present distorted pictures of preferences and hinders ability to expand the pie

Question 26

Issue-by-Issue (integrative) approaches

Answer 26

• discussing one issue at a time
• often becomes a series of contentions distributive negotiations
• creates illusion of simplicity

Question 27

NEGOTIABLE ISSUE types

Answer 27

distributive (zero sum), compatible, Integrative (variable sum)