a discussion between 2+ parties with the apparent aim of resolving divergent interests.
3 Charateristics Common to all Negotiation Situations
1. There are 2 + parties
2. Conflict of Interst
3. Parties negotiate bc they think they can get a beter deal than by taking what the other side will give them.
What are the 4 Major Sins of negotiation?
1. Leaving money onthe table (lose-lose)
2. Settling for too little (winner's curse)
3. Walking away from the table
4. Settling for terms worse than your alternative (agreement bias)
the lose-lose situation?
leaving money on the table
what is the winner's curse?
settling for too little
What is an Agreement bias?
settling for terms worse than your alternative
What does BATNA stand for?
Best Alternative To Negotiated Agreement
What is the indifference point?
Reservation Point
What is the aspiration level?
Target point
BATNA should =
Reservation point
T/F- Generally, do not accept an offer equal to or higher than your BATNA.
False- do not except lower
What % of negotiators have a Fixed Pie Perecption, assuming your interests and the other party's interests are opposed?
80%, and it leads to information availablitly errors
what type of culture is Fixed Pie Percept most prevalent in?
Individualistic cultures like the US due to focus on self interests.
T/F- Fixed Pie Perceptions are made worse under high time pressure
True
What is the goal of Distributive Bargaining Situation>
Maximizing the share of resources
T/F- In Distributive Bargaining situations, the goals of one party are in indirect conflict to another party.
false- direct conflict, resources are fixed and limited
3 Keys to effectiveness in Distributive Barg. when a settlement rage is present?
1. Discovering the other party's resistance point
2. Push for setltement near opponent's resistance point
3. Get the other party to reduce their resistance point
If there is no settlement range in Distributive Barg, then (2)
1. Get the other side to reduce thier resistance point
2. Modify your own resistance point
T/F In distributive bargaining you should set HIGH aspirations
True.
T/F- In Distributive Bargaining you don't need to know yours or your opponent's BATNA.
False, you should know both
T/F- In Distributive Bargaining it is better to make the first offer.
true
T/F- In Distributive Bargaining you should try to state ranges.
False- avoid stating ranges
T/F- In Distributive Bargaining it is better to counter offer immediately
True
T/F- In Distributive Bargaining it is better to make BILATERAL concessions as opposed to UNILATERAL
true
T/F- In Distributive Bargaining it is better to reveal a deadline and appeal to norms of fairness
true
T/F- In Distributive Bargaining you should use objective-appearing rationale to support your offers
true
T/F- In Distributive Bargaining you should never reveal your reservation point
True
According to a graph shoing results of Distributive bargaining situations, what is the upshot when refering to first offers and considering BATNAs?
Make first offer, and consider opponent's BATNA
What is the term of how negotiation is described in terms of gains vs. losses?
Framing
Negotiators who understand framing may understand...
how to have more control over the negotiation process
T/F Role of concessions is essential to negotiation.
True
2 Negatives of concessions..
1. May communicate weakness
2. Must be reciprocated
T/F- Patterns matter in Role of concessions.
True
In Integrative bargaining, increased # of issues results in (lower/higher) negotiator satisfaction due to __________ thinking.
lower, counterfactual.
When parties have different preferences across negotiation issues in integrative bargaining, it is potentially a..
...win-win negotiation
What are the 4 faulty perceptions of a Win-Win Negotiation?
1. Compromise
2. Even Split
3. Feeling good
4. Building a relationship
What is the 3rd level of the Pyramid Model of Integrative Agreements?
Pareto-Optimal: Integrative agreement that are imposible to improve for both parties
What is the 2nd level of the Pyramid Model of Integrative Agreements?
Settlement demonstrably superior to other feasible settlements: negotiators create agreement that is better for both partiesthan other feasible agreements
What is the 1st level of the Pyramid Model of Integrative Agreements?
Mututal Settlement (positive bargaining zone): agreement exceeds parties' reservations points; creates value relative to next best alternative.
What are strategies that do NOT work (4)?
1. Fixed Pie perception
2. compromise
3. focusing on LT relationship
4. adoptiong a 'coopertatve orientation'
T/F- Low resistance to yielding is 'bad'.
true
Research shows that fixed pie perceptions lead to _________ agreemnents
suboptimal
Define: Information search
Failing to ask for info about other's preferences bc they assume they are in opposition
Define Information Processing
distorting or ignoring info about the other's preferences even when it is available
Define: Resistance to Yielding.
Degree to which individual will hold "tough" in maintaining their own interests.
T/F- Integrative tactics work especially well when there is low resistance to yielding.
False, works well with HIGH resistance to yielding.
*Low Resistance: caves easily and produces unilateral concessions or simple splitting of the pie
*High Resistance: holds tough in representing interests, and forces parties to problem solve.
Keys to effectiveness in Integrative bargaining.. (7)
