Lecture 7

Question 1

BATNA

Answer 1

Best Alternative To Negotiated Agreement (what will the negotiator do in the event of no agreement?)

Question 2

RP

Answer 2

Reservation Price (value of an offer that would be minimally acceptable, because you would be indifferent between accepting it or going to your BATNA)

Question 3

ZOPA

Answer 3

Zone Of Possible Agreement –> in case of negative ZOPA, people should not

Question 4

Discount rate

Answer 4

Money in hand is worth more than the promise or chance of money later

Question 5

Agreement trap/bias

Answer 5

Negotiators reach agreements that are inferior to their best alternatives –> strong emphasis on reaching an agreement

Question 6

Fixed pie bias

Answer 6

Assumption that there is a “fixed pie” of resources

Question 7

Distributive issues

Answer 7

Issues with dividing up the pie of value –> no room to create value, only divide it (issues are similarly valued by both parties but each party wants the opposite outcome)

Question 8

Integrative issues

Answer 8

Issues with creating value and increasing the pie of value, one party cares about the issue more than te other

Question 9

Compatible issues

Answer 9

Issues in which both parties want the same outcome, you need to figure this out to increase the pie of value

Question 10

Pareto improvement

Answer 10

Benefits at least one member without harming the other (can be created by integrative negotiation)

Question 11

Perspective taking

Answer 11

The cognitive capacity to consider the world from another individual’s point of view

Question 12

Empathy

Answer 12

The ability to connect emotionally with another individual

Question 13

Increasing the value of pie:

Answer 13

• Perspective-taking increases the value pie the most
• Empathy makes recruiters worse off,
• Perspective-taking benefits both recruiters and candidates