Negotiations Flashcards
What is BATNA?
Best Alternative to Negotiated Agreement
What is Reservation Price?
A point where the negotiator should rationally work away from an agreement
What is ZOPA?
Zone of Possible Agreement; range between the two reservations
What is one ideal heuristic to discover ZOPA?
Actively trade items of high value to the receiving party but of low cost to the offering party
2 types of approaches in negotiations
- Relationship
- Issue
What are the factors of the Relationship-centered approach?
- Friendship
- Long-term partnership
- Networks
- Reputation
- Trust
What are the factors of the Issue-centered approach?
- BATNA & ZOPA
- Available resources
- Market dominance
- Profit
- Goals
What is a Position in negotiations?
The demands and offers that a negotiator is making or willing to make
What is an Interest in negotiations?
- Concerns
- Needs
- Desires
- Values
- Emotions
That are underlying the Position
What should an effective negotiator focus more? Positions or Interests?
Interests; however it adds the difficulty of helping the other to adopt the same orientation
Explain an Interest-Oriented negotiation strategy
- Understand the interests
- Verify the legitimacy of the interests
- Undermine or trivialize the interests (if you are being aggressive)
Explain a defensive Interest-Oriented negotiation strategy
- Know your interests
- Articulate and legitimize your interests
- Stay firm on your interests
-> You should never concede your interest
What is a Paradox?
Apparently contradictory opposites that can simultaneously co-exist
2 types of Mindset
- Trade-off mindset
- Paradox mindset
What is Trade-Off Mindset
- See things as ‘either or’ or zero-sum
- Uncomfortable with tensions
