Module 9

Question 1

Preceptions are affected by

Answer 1

• Upbringing
• culture
• values
• Current state of mind (moods, emotions)

Question 2

Heuristics

Answer 2

Decision shortcuts

Question 3

Selective attention

Answer 3

• filter out the noise
• efficiency in processing information
• ignore information

Question 4

Stereotyping

Answer 4

allows for categorizing of a group of people – it does not, however, effectively allow for predicting how a specific person from that group will act during a negotiation.

Question 5

Prospect Theory

Answer 5

Suggests that a bargaining proposal framed in terms of what the other negotiator has to lose if he or she says no will be more effective than framing it in terms of what he or she has to gain by accepting the proposal.

Question 6

Anchoring

Answer 6

A cognitive bias that explains why a negotiator may want to make the first offer as it anchors the negotiation; particularly effective if the other negotiator does not have a good understanding of the market value of the good or service being negotiated.