Quiz #1

Question 1

People who:
* look around a lot more
* make higher $$ on avg.
* compare upwards
* overall more unsatisfied

Answer 1

maximizers

Question 2

What characteristics fall into the escalation of commitment?

Answer 2

invest in initial course of action -> does not produce desired return -> commit more resources to cover -> cost of failure rises -> commit more resources -> cost of failure rises

Question 3

Are maximizers or satisfiers at a greater risk for escalation?

Answer 3

maximizers!

Question 4

Cognitive shortcuts or mental rules of thumb are also known as __________ ____________.

Answer 4

decision heuristics

Question 5

The tendency to seek and attend to info that confirms our theories and avoid seeking or attending to info that disconfirms them is ______________ _________.

Answer 5

confirmation bias

Question 6

Overconfidence in conclusions based on incomplete data is an example of ____________ _________.

Answer 6

confirmation bias

Question 7

The tendency to evaluate risk differently depending on how a decision is presented (framed) is _____________ __________.

Answer 7

framing heuristic

Question 8

When thinking on a framing heuristic, if a situation is presented as a LOSS, you’re likely to…

Answer 8

take the risk, risk-seeking, gamble

Question 9

When thinking on a framing heuristic, if a situation is presented as a GAIN, you’re likely to…

Answer 9

take the gain + walk, be risk-averse

Question 10

The tendency to base judgments on how readily relevant examples, experiences etc., come to mind is ____________ ___________.

Answer 10

availability heuristic

Question 11

______________ _____________ is affected by recency, vividness, primacy.

Answer 11

availability heuristic

Question 12

The tendency to overweight initial information or estimates when forming a final judgment, even when it’s meaningless is ______________ _________.

Answer 12

anchoring bias

Question 13

What are the three major advantages to network-building, according to HBC?

Answer 13

1. access to private info
2. access to diverse skillsets
3. power

Question 14

Control over resources that another person, team or organization cares about is _________.

Answer 14

power!

Question 15

True or false: The resources for which you can have power can be tangible or intangible.

Answer 15

true

Question 16

True or false: resources don’t have to be valued by the other party in order to render power.

Answer 16

false

Question 17

What is formal power?

Answer 17

hierarchical, stems from your official position, ability to reward / punish / coerce

Question 18

What is informal power?

Answer 18

stems from what you bring to the table, reputation, who you know; expertise, trust / admiration, friendship

Question 19

When networking, it is beneficial and most powerful to be a ___________.

Answer 19

broker

Question 20

What does a broker do?

Answer 20

connects unconnected groups of people, be the middleman

Question 21

What is the homophily tendency?

Answer 21

when your strong ties = overlap in networks, causing redundant resources

Question 22

The process of affecting others’ attitudes and behaviors to achieve an objective is ____________.

Answer 22

influence

Question 23

What are the six principles of persuasion?

Answer 23

1. liking
2. reciprocity
3. consistency
4. social proof
5. authority
6. scarcity

Question 24

Liking means that we…

Answer 24

do things for the people we like

Question 25

Reciprocity means that we...

Answer 25

feel obligated to reciprocate

Question 26

Consistency means that...

Answer 26

people are motivated to consistently behave with commitments

Question 27

Social proof means that people...

Answer 27

look to others to decide how to act

Question 28

Authority means that we...

Answer 28

believe the experts

Question 29

Scarcity means that...

Answer 29

people want what they can't have

Question 30

The formal or informal process by which 2+ parties decide what they will give and take in the context of a relationship is _____________.

Answer 30

negotiation

Question 31

The BATNA is the...

Answer 31

best alternative to a negotiated agreement

Question 32

The RP is the...

Answer 32

reservation price, or how much @ max the buyer can pay / seller can sell for

Question 33

The ZOPA is the...

Answer 33

zone of possible agreement

Question 34

Why might buyers pay more than they should?

Answer 34

- overly committed to product - agreement bias (the tendency to reach an agreement b/c we want to agree, even if the deal < BATNA)

Question 35

Why might sellers accept less than what is rational?

Answer 35

- bird in hand - relational considerations - feelings of sympathy - emotional appeals

Question 36

The person who makes the _______ offer generally claims more value in a negotiation.

Answer 36

first

Question 37

The AP is the...

Answer 37

aspiration price, or the best outcome you realistically hope to achieve

Question 38

What are the three types of issues in negotiation?

Answer 38

1. distributive issues 2. integrative issues 3. compatible issues

Question 39

- one party's gain = the other's loss - success means gaining value from the counterpart

Answer 39

distributive issues

Question 40

- one party's gain does NOT = the other party's loss - variable sum situation - using multiple issues to create value and claim value from counterpart

Answer 40

integrative issues

Question 41

- one party's gain = the other's gain - creating value w/counterpart - great for relationship-building - frequently overlooked

Answer 41

compatible issues

Question 42

To maximize joint gains, you should...

Answer 42

package your issues

Question 43

Negotiation where goals of parties are not mutually exclusive; possible win-win solution, is ___________ __________.

Answer 43

integrative bargaining

Question 44

True or false: we tend to assume that all issues are compatible.

Answer 44

false! we assume all issues are distributive

Question 45

True or false: we tend to assume that you can only negotiate one issue at a time

Answer 45

true

Question 46

For the best chance of agreement, the disclosure should look like:

Answer 46

both parties disclosing

Question 47

For the worst chance of agreement, the disclosure looks like:

Answer 47

neither party discloses

Question 48

I should worry about the other party taking advantage of me if the disclosure looks like:

Answer 48

I disclose and they don't

Question 49

The other party could worry about me taking advantage of them if:

Answer 49

They disclose and I don't

Question 50

You end up sharing this pretty immediately with your first offer.

Answer 50

aspiration price

Question 51

You can share this when the negotiation is strong, but sometimes it hurts you to share it.

Answer 51

BATNA

Question 52

NEVER share this in a negotiation. It gives the other party a chance to manipulate and only offer you something marginally better.

Answer 52

reservation price