Module 3

Question 1

Distributive Bargaining

Answer 1

Effective when maximizing your own outcome when relationship is not important

Question 2

Assumptions of Distributive bargaining

Answer 2

• Fixed resources to be divided
• One party gains the other party loses (win/lose)
• Interests are diametrically opposed.
• Over one single issue
• Relationship is not strong
• hardball tactics are normative and expected.

Question 3

BATNA

Answer 3

What happens if I don’t make this deal?

Question 4

Good BATNA

Answer 4

• More Value you can claim
• The more aggressive you can be
• Can anchor you in terms of what you belive is a reasonable outcome.

Question 5

Reservation Prive

Answer 5

Least willing to accept. Try to learn the other side’s reservation price.

Question 6

Aspiration Level

Answer 6

What you want to achieve.

Question 7

Bargaining Zone

Answer 7

The zone between the two offers

Question 8

Settlement Zone

Answer 8

Where settlement occurs, between the parties’ reservation prices

Question 9

Information Gathering

Answer 9

• Generally do not want to disclose RP, BATNA
• Pattern of concessions may signal RP
• Pay attention to consistency.
• Watch body language.

Question 10

HighBall/LowBall

Answer 10

Open with high price often can’t justify it

Question 11

Intimidation

Answer 11

trying to intimidate the other party

Question 12

Bogey

Answer 12

pretend that an issue is important when it is not.

Question 13

Nibble

Answer 13

trying to get them to make a small concession or and the end of the deal you make a small request.

Question 14

Chicken

Answer 14

making a threat of some negative action tiring to dare them into something

Question 15

Good cop/Bad Cop

Answer 15

someone in the negotiation to be with you. (What parent to go to when you need something for this or that)

Question 16

Flinch

Answer 16

Every time you talk numbers you act surprised at the number

Question 17

Snow Job

Answer 17

the person comes prepared with a bunch of data to overwhelm you.

Question 18

How to respond to hardball tactics

Answer 18

Ignore them
Discuss them
Respond in kind
Co-opt the other party before they use them

Question 19

Dawsons Power Strategies

Answer 19

• Ask for more than you expect
• Never say yes to the first offer
• Always flinch when getting the first offer
• Play reluctant seller
• focus on issues
• Use vice “you’ll have to do better”
• Use a higher authority

Question 20

Who should make the first offer

Answer 20

If you are uncertain about the value of the product
or service you are negotiating over, it is better to
have the other negotiator make the first offer.

Question 21

Pattern of Concessions

Answer 21

• Get reciprocal concessions (if we do this what can you do)
• Never offer to split the difference
• Watch your pattern of concessions