Lecture 4: Negotiation strategies

Question 1

What are the security point and optimal outcome in hard (distributive) bargaining?

Answer 1

The security point is the minimum a party is willing to accept, and the optimal outcome is the maximum a party is able to obtain.

Question 2

What is the Zone of Possible Agreement (ZOPA)?

Answer 2

ZOPA is the bargaining space between the security points of both parties. It is the range within which an agreement is possible. No overlap in ZOPA means no agreement can be reached.

Question 3

How can the ZOPA be changed during negotiations?

Answer 3

ZOPA can be altered by offering new information or proposals, thereby shifting the perceived security points of the parties involved.

Question 4

What is the risk of lying in negotiations?

Answer 4

Lying can damage trust and lock parties out of ZOPA, making it difficult to reach an agreement and harming future negotiation prospects. You lie about your security point so your bargaining space is not clear.

Question 5

What is the tit-for-tat strategy in negotiation?

Answer 5

Tit-for-tat involves responding in kind to the other party’s actions. If they make a small concession, you make a small concession; if they make a large concession, you do the same.

Question 6

What is the “inviting unreciprocated offers” tactic in negotiation?

Answer 6

Inviting unreciprocated offers involves making concessions or offers without requiring the other party to reciprocate. This tactic can sometimes encourage goodwill or demonstrate commitment, but it also risks weakening your negotiation position if the other party does not respond in kind.

Question 7

What are extreme claims and small concessions in negotiation tactics?

Answer 7

This tactic involves starting with extreme demands and making minimal concessions over time. When you start too high it can create a negative atmosphere and make the negotiator seem unserious. Starting very low brings you in a vulnerable position, as you end up closer to your own security point

Question 8

What are commitment tactics in negotiation?

Answer 8

Commitment tactics involve claiming limited authority to make further concessions, suggesting that the negotiator’s hands are tied.

Question 9

What are take-it-or-leave-it offers in negotiation?

Answer 9

These offers present a deal as final, often accompanied by deadlines or ultimatums, cutting off alternatives and creating a sense of urgency.

Question 10

What does the “trying to make you flinch” tactic involve in negotiation?

Answer 10

The “trying to make you flinch” tactic involves increasing pressure on the other party to compel them to make a concession. This can be done through various means such as creating a sense of urgency, applying psychological pressure, or escalating demands.

Eventually you accept because the price keeps going up instead of concessions being made (situation worsening). Used in hostage situations

Question 11

What does the “personal insults” tactic involve in negotiation?

Answer 11

The “personal insults” tactic involves using negative, derogatory remarks to unsettle and pressure the other party. The aim is to provoke an emotional reaction that may cause the other party to make concessions to defuse the tension.

Question 12

What does the “bluffing and lying” tactic involve in negotiation?

Answer 12

The “bluffing and lying” tactic involves making false statements or exaggerations to mislead the other party about one’s position, intentions, or capabilities. The goal is to gain an advantage by manipulating the other party’s perceptions.

Question 13

What does the “incentives” tactic involve in negotiation?

Answer 13

The “incentives” tactic involves using rewards and threats to influence the other party’s decisions. Rewards can include positive inducements like financial benefits, concessions, or promises of future cooperation, while threats might involve negative consequences such as sanctions or withdrawal of support.

Question 14

What does the “belittling your alternatives” tactic involve in negotiation?

Answer 14

The “belittling your alternatives” tactic involves downplaying the value and viability of the other party’s alternatives to make your offer seem more attractive and to pressure the other party into accepting your terms.

Question 15

What is the good cop, bad cop tactic in negotiation?

Answer 15

The good cop, bad cop tactic involves one negotiator being tough (bad cop) and the other being more conciliatory (good cop), creating a contrast that makes the good cop’s terms seem more acceptable.

Question 16

What is integrative bargaining?

Answer 16

Integrative bargaining focuses on collaborative problem-solving, reframing issues to find common ground, and creating value rather than dividing a fixed pie.

Question 17

What is anchoring in negotiation?

Answer 17

Anchoring is a tactic where one party sets a reference point or initial offer early in the negotiation, which then serves as the psychological anchor that influences the negotiation process and the final agreement.

Question 18

What is enlightened self-interest in negotiation?

Answer 18

Enlightened self-interest involves helping others to help oneself, ensuring that the other party is also satisfied with the deal to create a mutually beneficial agreement

Question 19

What are the four principles of principled negotiation according to Fisher & Ury?

Answer 19

1. Separate the people from the problem.
2. Focus on interests, not positions.
3. Generate a variety of possibilities before deciding what to do.
4. Insist that the result be based on some objective standard.

Question 20

What should you do if the other party doesn’t engage in principled negotiation?

Answer 20

If the other party doesn’t engage in principled negotiation, you should use negotiation jujitsu and the one-text procedure. These approaches help to refocus the negotiation on interests and objective criteria.

Question 21

What is negotiation jujitsu?

Answer 21

Negotiation jujitsu involves deflecting attacks back to the problem, staying silent to encourage the other party to speak, and addressing their concerns to move towards a solution.

Question 22

What is the one-text procedure in negotiation?

Answer 22

The one-text procedure involves bringing in a third party to present a single proposal based on objective criteria, helping both parties to agree.

Question 23

How do you handle dirty tricks in principled negotiation?

Answer 23

Identify the tactic being used, confront the other party with it, and return to the four principles of principled negotiation to address underlying dissatisfaction. Usually when they’re unhappy with the negotiation process

Question 24

What are some risks associated with hard bargaining?

Answer 24

Hard bargaining can deteriorate relationships, create deadlocks, and impede addressing deeper interests, which can hinder long-term cooperation and value creation.

Question 25

What are the benefits of integrative bargaining?

Answer 25

Integrative bargaining can improve relationships, create new bargaining spaces, and effectively address interests that are hard to quantify, leading to more durable and satisfying agreements.