MGT491 Final Flashcards
What is the best alternative to a negotiated agreement.
BATNA
What is the value at which you would be indifferent between entering into or not entering into or not entering into an agreement, the bottom line
Reservation Price
What is the range if one exists, between the parties reservation prices, the bargaining range.
ZOPA
What dose ZOPA stand for?
Zone of Possible Agreements
What is the following?
- What is the second best alternative
- It is not your bottom line
- It is your next best alternative and helps determine your walk away point.
- It takes into account all your various interests.
BATNAs
What dose BATNA
Best Alternative to a Negotiated Agreement
What are quite useful when a negotiator wants to maximize the value obtained in a single deal and when the relationship with the other party is not important.
Distributive Negotiations, Distributive bargaining strategies and tactics
What is the following:
*Be strategic with your information. Use your information to influence your opponent’s perceptions of you
*Strategic communication is coded and complex.
Protecting your own information.
What is the other party’s resistance point will vary directly with his or her estimate of the cost of delay or aborting negotiations.
Propositions
What is the following:
- convince your opponent you are patient, willing to wait, and will abort negotiations if necessary.
- convince your opponent that his or her costs of delay/ abort are high.
Propositions
Happens during the following phase:
- Ask open ended questions not yes/no questions.
During the information phase
The following dose what:
- Important variables:
- The value the other attaches to a particular outcome.
- The cost the other attaches to delay or difficulty in negotiations.
- The costs the other attaches to having the negotiations aborted.
Influencing the other party’s resistance point
What is a resistance point will vary directly with the value that outcome.
Propositions
What is the following:
- Convince your opponent that the present bargaining position is unattractive
- Convince your opponent that your position is set in stone.
Propositions
What phase principled offers and concessions
The Competitive Phase
What is the following:
- Direct action to alter impressions
- threats and promises
- Aggressive techniques
- agent and unreasonable client
- Direct action to alter impressions
- Aggressive Techniques
- Manipulate the actual cost of delay or termination
Tactical Issues
The following tactical issues are examples of what:
- selective presentation
- explain/present/frame known facts
- interpret/ describe likely undesirable outcomes
- Silence and patience
Direct action to alter impressions
What is the type of bargainer is the most difficult to deal with because they effectively refuse to participate in the negotiation process and negotiators must force the person to negotiate and never allow them to alter their planned strategy.
Belly-up
The following is the cost of what action:
A. Disruptive action
B Alliance with outsiders
C Schedule manipulation
manipulate the actual costs of delay or termaination
The analytical structure of this approach is based on assessments of three key sets of information:
- Each party’s alternative to a negotiated agreement
- each party’s set of interest
- The relative importance of each party’s interests
With the information in hand what will be prepared for the two primary tasks of negotiation
- creating
2. claiming value
What is it when the reservation points of the two parties do not overlap is
negative bargaining zone
What is it when it is optimal for the negotiators to reach a settlement
positive bargaining zone
What is the though the process of identifying and adding issues, the parties have the potential to create value, increasing the amount of total benefit available
creating value in negotiation
The following are what:
- building trust and share information
- ask question
- strategically disclose information
- negotiate Multiple issues simultaneously
- Make multiple offers simultaneously
- Search for post-settlement settlements
The tools of value creation
What tool of value creation is the easiest way for parties to create value is for the two negotiators to share information with each other about their preference.
Build trust and share information
What tool of value creation is full information sharing will not always be to your advantage, information that will work against your if the other party obtains it, the other party also may be unwilling to fully disclose confidential information.
Ask question
What tool of value creation is not having a trusting atmosphere, and the other party is not answering your questions in any useful way, in the problem you have to give away some information.
Strategically disclose information
What tool of value creation is critical to get the most important issue resolved in the beginning
Considering pagers of issues: package offers help the other party isolate aspects of the offer that are particularly problematic and propose counter-offers that signal flexibility on some issues while making demands on others.
Negotiate multiple issues simultaneously
What tool of value creation is when the negotiators they to put an offer on the table early to anchor the discussion.
- Since the anchors have such a strong impact, they can overshadow subsequent discoveries.
- allows you to come across as a flexible negotiator.
- signals that you are willing to be accommodating and that you are interested in understanding the other party’s preferences and needs.
Make Multiple offers simultaneously
What tool of value creation is when the negotiators continue to seek out ways to increase the size of the pie.
Search for post-settlement settlements
What is one that is potentially even better for both parties than the agreement they already reach
pareto-superior agreement
What is contends that with this insurance in hand, negotiators may be more willing to allow a third party to create a superior agreement is know as what
post-settlement settlement
What approach tells us that we must consider the actual but not necessarily rational, decision of the other side.
* ingrained decision biases may limit your ability to follow this advice
decision-analytic approach
The following is apart of what:
- the mythical fixed pie of negotiation
- Framing of negotiator judgement
- the non rational escalation of conflict
- overestimating your own value
- self-serving biases
- anchoring biases
affect negotiator
What is the following:
- they assume that their interests conflict directly with the interests of the other side.
- They believe they are both fighting for the biggest piece of the pie of fixed size
- Lead us to interpret most competitive situations as win-lose.
- leads us to re actively devalue any concession made simple because it is offered by an adversary
The mythical fixed pie of negotiation
What is the assumption that one’s own interests are at odds with the other party.
incompatibility bias
What has the implications for the tactics used by negotiators, effects suggest that, to induce concessionary behavior is an opponent
* has important implications for mediators
Framing
What emotion effect makes our mind sensitive to risks and prepares our bodies to flee
Fear
What emotion effect make focuses our attention on physical contamination and motivates us to purge ourselves of contaminating agents
Disgust
What emotion effects the focuses attention on the self, leading people to ruminate more and motivates them to seek change
sadness
What is it when people who can read expressions of counterparts have a distinct advantage, in that they can gauge the tone of the other person and make adjustments to their own approach accordingly.
Premise
What describes the process by which conflicts grow in severity over time, by become of greater significance.
escalation of conflict
What is the following:
- It is the tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true. It has a double-edged effect.
- It appears that negotiators have a tendency to be overconfident about their own abilities and that this overconfident affects a wide variety of perceptions and behaviors.
Overconfidence
The following is what?
- Represent the subjective mechanism through which people evaluate and make sense out of situations
- Lead people to pursue or avoid subsequent actions
- Focus, shape and organize the world around us
- Make sense of complex realities
- Define a person, event or process
- Impart meaning and significance
Framing
What has a tendency to make systematic errors when they process information
Cognitive biases
The following is what?
- People often explain another person’s behavior by making attributions, either to the person or to the situation
- There is a tendency to:
a. Overestimate the role of personal or internal factors
b. Underestimate the role of situational or external factors
self-serving biases
What is the following:
- when making a series of sequential decision, we tend to escalate our commitment to the decision
- this tendency is increased in competitive environments
- There are psychological explanations for this behavior.
Escalation
What is the degree to which an individual escalates commitment to a previously selected course of action to a point decision making would prescribe.
non rational escalation
Which of the following is not a key set of information in Raiffa’s framework for approaching negotiations?
A. Each party’s BATANA
B. The relative importance of each party’s interests
C. Each party’s known information about the others party’s position
D. Each party’s set of interests.
C
Trust enables value creation through:
A. Creating contingent contracts
B. Identifying the parties interests
C. Facilitating tradeoff between issues of different relative importance.
D. Sharing information between the parties.
D
Contingent contracts can create value in the presence of what feature:
A. Uncertain future outcomes
B A negative bargaining zone
C. Difference in the parties’ time preferences.
D. Differences in the parties risk preference.
A
Negotiators often are reluctant to give away information because they assume that:
A. Their information is too important
B. It will anchor their final outcome
C. Giving away information is giving away power.
D. If the other side dose not ask questions, then their willingness to share information is equally low.
C
True or False
The best strategy in negotiation is to get the most important issue resolved in the beginning and then move on to less important issues.
False- advocate negotiating multiple issues simultaneously.
Which bias underlies the tendency of people to over claim credit for their contribution to an outcome?
A. The affect heuristic
B. Time discounting.
C. Self-serving attributions
D. None of the above
C
True or False
Once a settlement has been achieved, it is wise not to re-open it, because going back to reconsider an issue can harm the mutual trust between the parties.
False, Post-settlement settlements: suggests that after negotiators have found a mutually acceptable agreement, they should employ a third party to help them search for a pareto-superior agreement, one that is potentially even better for both parties than the agreement they already reached.
Negotiations that do not involve more than one issue are likely to focus on ____________ of value but not ______________ of value.
A. Creation, claiming
B. Claiming, creation
C. Sharing, Disposition
D. none of the above
B
Creating anchors that lead negotiators toward a positive frame may cause these negotiators to:
A. Re-actively devalue given offers.
B. Put more emphasis on value creation
C. make more concessions.
Reach an avoidable impasse
b
The Fixed-pie assumption leads negotiators to interpret most situations as:
A. overly risky
B. Win-lose
C. Integrative
D. Unfair
b
True or False
Because they are risk-averse, negotiators in final-offer arbitration tend to believe that the chance of their final offers to be accepted is lower than it actually is
True
Which of the following has the lost predictive power of a graduate student’s future performance?
A. The student’s performance in an interview
B. The student’s score in the Graduate Record Examination (GRE)
C. The student’s undergraduate Grade Point Average
D The quality of the student’s undergraduate School
A
Which of the following biases did the Oakland Athletics baseball team overcome by implementing linear models in the team’s management decision?
A. Overweighting observed payer performance
B. Overgeneralizing from person experiences.
C. Overweighting recent data
D. All the above
D
The mythical fixed pie can cause parties to fall pray to what bias?
incompatibility bias
What bias is the assumption that one’s won interest are at odds with the other party’s?
incompatibility bias
The assumption of a fixed pie leads us to interpret most competitive situations as what?
win-lose
____________ effects suggest that, to induce concessionary behavior in an appoint, a negotiator should always create anchors to lead to opposition toward ____________ frame.
framing
Positive
What is the following:
- when making a series of sequential decision, we tend to escalate our commitment to the first decision.
- This tendency is increased in competitive environments
- there are psychological explanations for this behavior.
Escalation
What is the psychological processes the lead people to engage in ethically questionable behavior that are inconsistent with their own preferred ethics.
Bound Ethicality
What refers to the tendency for people to define what is fair in ways that favor themselves
Self-serving bias.
The inevitable tension between what is good for the individual negotiators and what is best for the group produces what?
Social dilemma
The field of study that specializes in giving this sort of prescriptive decision advice is generally called
Decision analysis
Decision analysis usually guides decision making using the logic of________
Expected value
________ is a formula that weights and adds up the relevant predictor variables in order to make a quantitative prediction.
Linear model
The tendency to overestimate the likelihood of events with greater “availability” in memory, which can be influenced by how recent the memories are or how unusual or emotionally charged they may be
Availability
____________is a heuristic, a mental shortcut that allows people to make decisions and solve problems quickly and efficiently, in which current emotion—fear, pleasure, surprise, etc.—influences decisions
affect heuristic
A common fallacy wherein people determine the probability or frequency of an event based on assumptions or past experience is what heuristic
Representativeness
The tendency to search for, interpret, focus on and remember information in a way that confirms one’s preconceptions is what heuristic
Confirmation heuristic
_____________ refers to a procedure for reducing or eliminating biases from the cognitive strategies of the decision making
Debiasing
