Quesiton 4

Question 1

When making the first offer you should:

Answer 1

• Make an offer falling outside the ZOPA so that the other party has to negotiate their way into the ZOPA
• justify everything with facts
• push the other party but only so far as is reasonable

Question 2

What are the three preparation steps of negotiating to win?

Answer 2

• assess your BATNA and RV
• assess the other party’s BATNA and RV
• calculate the ZOPA

Question 3

What is a reservation value RV?

Answer 3

The lowest value that you would be willing to accept

Question 4

What is the ZOPA?

Answer 4

ZOPA is the zone of possible agreement

Question 5

Other tips for negotiating to win include:

Answer 5

• probe for more information
• consider use of a contingency contract to probe against deceit
• keep focus on the other party’s RV
• consider diminishing concessions
• use caution if the other party offers more than was expected