problem 7 - quid pro quo Flashcards
BATNA -key word
- Best Alternative To a Negotiation Agreement
- we should prefer any negotiation agreement that provides more value to us than our BATNA
Reservation point
-least favorable point at which one will accept a negotiated agreement
Claiming value
-one issue negotiations
Positive bargaining zone
- reservation points of parties overlap
- optimal for negotiations to reach settlement
Negative bargaining zone
- reservation points of parties do not overlap
- no settlement that would be acceptable for both parties
creating value in negotiations
-key word
- real world negotiations frequently overlook opportunities to create value
- risk sharing strategies allow for trades that might not otherwise occur
- multitude of differences between parties can enhance negotiation outcomes
creating value through bets (4)
1) Bets built on differences to create joint value
2) Bets help manage biases
3) Bets diagnose disingenuous (unehrlich) parties
4) bets establish incentives (Prämienlohn, Anreiz) for performance
Tools for value creation (6)
1) build trust and share information
2) ask questions
3) strategically disclose information
4) negotiate multiple issues simultaneously
5) make multiple offers simultaneously
6) search for post-settlement settlement
distributive negotiation - key word
- fixed amount of resources are divided between parties
- competitive
- win-lose orientation
- motivation: self interest and individual profit
- only one issue at a time is discussed
- relationship has not a high priority
Integrative negotiation -key word
- mutual problem solving technique to enlarge the assets (anlagen) that are to be divided between parties
- collaborative
- win-win orientation
- motivation: mutual interest+ gain
- several issues at a time are discussed
- relationship -> high priority
Egocentric bias
-negotiator overconfidence and egocentrism
Fixed pie
- human tendency to overestimate the extent of conflict
- underestimate the amount of common ground they share with others
- assumes ‘if its good for them, it must be bad for us’
- bigger slices for them means smaller slices for us
- > prevents negotiator from looking outside the box and considering creative solutions
Reactive devaluation
-process of devaluing the other party’s concessions simply because other party made them
Gender differences
- men achieve better economic negotiation outcomes than women
- women report greater anxiety about negotiating
- outcomes are context-bound
Direct power in negotiations
- alternatives (can also backfire)
- negotiation - relevant information
