Task 7 - The four horsemen of power at the bargaining table

Question 1

What are the four core sources of power in negotiations?

Answer 1

• Alternatives
• Information
• Status
• Social Capital

Question 2

What are implications of having a good BATNA?

Answer 2

Having a very good alternative might decrease motivation to achieve the best outcome in the negotiation.

Question 3

What are side-effects of having a bad BATNA?

Answer 3

Anchoring effect: Makes it more likely that the negotiator settles for less than desired

Question 4

What kind of relationship can turn out to be advantageous in negotiations?

Answer 4

Weak ties

Question 5

Give an example of how the sources of power influence one another.

Answer 5

Social Capital -> Status: Having many people in your network increases status

Question 6

What role does culture play here?

Answer 6

High vs Low power distance:

• > Low power distance = eastern: more emphasize on status and social capital
• > High power distance = western: more focus on information and BATNA