Negotiations Final

In negotiation, people often have faulty perceptions. The fixed-pie perception refers to: A. simultaneously improving the outcomes for both parties B. believing that the counterparty's interests are directly opposed to one's own interests C. a fixed alternative agreement that improves one party's outcome D. settling for outcomes that exceed parties' reservation points

B

In negotiation, the strategy of making concessions on low-priority issues in exchange for gains on high-priority issues is known as: A. the fixed pie perception B. logrolling C. counterfactual thinking D. consensus conflict

B

In preparing for negotiation, a negotiator needs to determine what would constitute an ideal outcome, or favorable set of terms, also known as a _______. A. winner's result B. target point C. BATNA D. reservation point

B

With regard to negotiation style, truly effective negotiators are neither tough or soft, but rather they: A. are friendly B. are principled C. rely on intuition D. are dignified

B

With regard to effective negotiation, the ability of negotiators to understand emotions in themselves and others and to use that understanding to generate positive outcomes is defined as: A. emotional intelligence B. motivational orientation C. social comparison D. reciprocity

A

With regard to how to move the counterparty away from rights and power, one of the most effective methods is a process intervention; one of the least effective interventions is: A. reciprocation B. paraphrasing the other party's statements C. strategic cooling off periods D. using self-discipline and not using personal attacks

A

With regard to motivational orientation, the negotiator whose goals are individualistic in nature: A. prefers to maximize his or her own gain and is indifferent to how much the other person is getting from the agreement B. prefers to maximize the difference between their own profits and those of the other party C. seeks to minimize the difference between the negotiating parties' outcomes D. is aggressive and egotistical during the negotiation

A

A number of biases affect a negotiator's ability to negotiate effectively. One of these biases, the confirmation bias, is best defined as: A. the tendency of people to see what they want to see when evaluating a situation for themselves B. being aware of one's own incompetence C. setting high aspirations and attempting to achieve as much as possible D. settling for something less than what could have been achieved with better effort

A

A type of negotiation behavior known as reactive devaluation refers to: A. a negotiator who does not know what he or she really wants other than not wanting what the other party is offering B. a negotiator who sets the target point too high and refuses to make any concessions C. a negotiator who overvalues the counterparty's offer D. an negotiator who opens the negotiation by setting their target too low

A

According to the interests-rights-power model of disputing, negotiators who use an interests-based approach when faced with a dispute situation: A. attempt to reconcile differences in a way that addresses both parties' needs and concerns B. focus on standards of fairness, including legal rights, precedents previously set, or expectations based on norms. C. use threats only in the late stages of negotiation D. never use threats

A

As compared to negotiators who focus on minimizing costs (loss-frame), negotiators who focus on maximizing gains are: A. more likely to logroll or trade off issues in a win-win fashion B. more likely to accept a contingent contract C. less likely to use MESO's D. under the illusion of transparency

A

If you reveal your reservation point during the course of negotiation: A. the other party has little or no incentive to offer you more B. parties will reach an impasse C. the counterparty will reveal his or her reservation point D. you will get a bigger slice of the pie

A

In negotiation, _______ occurs when people believe that their interests are incompatible with the other party's interests, when in fact, they are actually compatible. A. false conflict B. the halo effect C. a premature concession D. the lose-lose effect

A

In negotiation, contingency contracts need to be carefully crafted so as to prevent misunderstanding. This involves several considerations including: enforceability, clarity, ability to be readily evaluated, and: A. measurability B. the ability for side-deals to be made C. relational accommodation D. ambiguity

A

Negotiators should assess themselves and their resources before commencing negotiation. One question a negotiator should ask is, "What are my sunk costs?" A sunk cost is best defined as: A. money you have invested, that is for all practical purposes, spent B. a contractual cost C. money you expect to be paid at the completion of a service contract D. the yield expected from a stock price

A

Revealing information about a BATNA or a reservation point: A. reduces a negotiator's power in a negotiation B. increases the counterparty's propensity for strategic risk taking C. is a pie-expanding strategy D. improves the negotiator's odds of getting what they want

A

Some negotiators make extreme offers. The result of this strategy often means the counterparty may be offended and walk away from the table. This is known as the: A. chilling effect B. goal-setting paradox C. social utility decline D. winner's curse

A

The term used to represent the quantification of a negotiator's BATNA with respect to other alternatives is known as: A. the reservation point B. the target point C. the focal point D. a sunk cost

A

What vicious cycle occurs when negotiators are affected by the self-reinforcing incompetence bias? A. People are unaware of their own incompetence and this lack of skill deprives negotiators of both the ability and the expertise to know they are not producing correct responses. B. The negotiator gets stuck in a cycle of settling for something less that they could have otherwise negotiated and then feeling animosity towards the other negotiating party. C. Negotiators are so self-focused that they are unable to empathize with the other party's interests or goals D. A negotiator focuses on the values that are personally important to them but neglects to investigate the values that are unimportant to them, thus limiting their decision making abilities.

A

When negotiators are described as being interdependent, that means people need to know how to: A. integrate their interests and work together B. have similar incentive structures C. be self-sufficient and self-focused D. develop different norms of communication

A

A negative bargaining zone indicates that: A. parties are worse off by not reaching agreement than by reaching agreement B. there is no positive overlap between the parties' reservation points C. parties should keep negotiating to find a positive bargaining zone D. the counterparty's first offer was not accepted

B

A negotiator's BATNA (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to: A. make larger concessions B. keep options open C. walk away from the negotiation table D. identify the counterparty's alternatives

B

A negotiator's reservation point is a quantification of the negotiator's: A. target point B. BATNA C. bargaining zone (ZOPA) D. opening offer

B

According to a research study examining post-negotiation satisfaction, negotiators who focus on their ideal outcomes do not feel as satisfied as negotiators who focus on their: A. first offer B. BATNA C. negotiator's surplus D. ZOPA

B

Because negotiations are costly to prolong, it is in both parties' interests to determine whether a positive bargaining zone is possible. If the negotiators discover that no positive bargaining zone exists, what is the recommended action they should take? A. Continue negotiating B. Stop negotiations and pursue other alternatives C. Increase the group size of both negotiating parties D. Take a break

B

Besides language and currency issues, one of the main challenges that globalization presents for negotiators is: A. the tendency of people to see what they want to see when appraising their own performance B. learning and adjusting to different norms of communication between parties C. finding housing for employees D. controlling the economic forces within the country

B

If a negotiator desires to maximize his or her outcomes, which of the following best describes the goal that a negotiator should have when approaching a negotiation? A. To reach a settlement that shares the pie equally with both parties B. To reach a settlement that is most favorable to oneself and does not give up too much of the bargaining zone C. To gain all of the bargaining surplus D. To have the counterparty leave defeated

B

If the counterparty makes the first offer, negotiators are best advised to: A. accept their first offer B. make a counteroffer in a timely fashion C. make your counteroffer your final offer D. adjust your BATNA based upon the counterparty's offer

B

In negotiation which of the following statements is generally not true when it comes to a negotiator's BATNA? A. It is dynamic and constantly changing B. It is generally wise to reveal it C. It is determined by the negotiator's available options D. It influences a negotiator's reservation price

B

In negotiation, buyers and sellers may adopt differing bargaining positions for an object, but their private valuations for the object should not differ as a consequence of who has possession. The endowment effect is best described as: A. the difference between what sellers demand and what buyers are willing to pay B. a tendency for people to value an object more once they own it C. the intrinsic value we associate with a certain outcome D. saving money instead of purchasing goods

B

In negotiation, having your first offer immediately accepted by the counterparty is likely to lead to feelings of what might have been different, also known as_________? A. linkage effects B. counterfactual thinking C. hindsight bias D. gambler's fallacy

B

Negotiation is a mixed-motive enterprise, which refers to the fact that parties: A. manage both economic and psychological dimensions B. have incentives to cooperate as well as compete C. use both deliberate thought and intuition D. balance rewards and costs

B

Negotiation is best described as: A. a contest of wills between opposing parties B. an interpersonal decision-making process necessary whenever people cannot achieve their objectives single-handedly C. a third party mediation D. the process of compromise so as to instigate conflict with one side coming out the victor

B

Negotiator's evaluations of the fairness of procedures determines their satisfaction and willingness to comply with negotiated outcomes. Procedural justice is best defined as: A. the promises made to a counterparty to deliver on a contract B. the processes by which decisions are made, the methodology behind how resources are distributed, and how outcomes are determined C. the agreements wherein negotiators make bets based on their differences in beliefs, forecasts, risk profiles, and interests. D. the rectification of wrongs

B

Negotiators can focus on gains or losses during a negotiation. Most negotiators are _______ when it comes to losses, and _______ when it comes to gains. A. risk-averse ; risk-seeking B. risk-seeking ; risk-averse C. rational ; irrational D. irrational ; rational

B

Negotiators often compare their inputs and outputs with others. Which of the following statements is true regarding social comparison in negotiation? A. When a pro-social cooperator negotiates with a competitor, they are less likely to accept an unfair offer, as compared to individualists and competitors B. People will sometimes refuse a larger salary if it means this would equate outcomes between themselves and another party C. Men are more likely to engage in social comparison than women D. Women are more likely to engage in social comparison than men

B

Negotiators who make the mistake of not developing a reservation point before they negotiate often focus on: A. personal grudges B. arbitray values C. their reputation D. time constraints

B

One strategy for improving one's BATNA in negotiation is to: A. discuss it in explicit terms with the counterparty B. improve your alternative options before going to the negotiation table C. replace it with an aspiration point D. revise it in reaction to progress of the negotiation

B

Pre-settlement settlements (PreSS) occur in advance of the parties undertaking full-scale negotiations and are designed to be replaced by a long-term agreement. Which of the following is a key characteristic of PreSS? A. PreSS are informal and unenforceable B. PreSS are formal and binding C. PreSS address issues after all the main issues have been decided upon D. PreSS address and resolve all outstanding issues

B

Regarding some of the major shortcomings that negotiators struggle to overcome, "lose-lose" negotiation occurs when negotiators: A. settle for too little by making concessions that are too small B. leave money on the table because they fail to recognize and exploit opportunities for mutual gain C. accept all terms offered by the counterparty D. do not sign a binding contract

B

Regarding the different aspects of a negotiator's motivational orientation and style, negotiators who use a competitive-based approach tend to: A. be indifferent as to how much the counterparty is getting in the agreement B. want to maximize the difference between their own profits and those of the other party C. want to minimize the difference between negotiators' outcomes D. legitimize the counterparty's needs

B

Regarding the interests, rights, and power model of disputing, a negotiator who uses an interests-based approach is characterized by: A. the use of status, rank, threats, and intimidation B. an interest in the counterparty's underlying needs, desires, and concerns C. attempts to understand the past events D. an interest in the unequal distribution of resources as this focus often produces a clear winner and a loser

B

The _______ is a measure of the value that a negotiated agreement offers to both parties over the value of not reaching a settlement. A. negotiator's surplus B. bargaining surplus C. BATNA D. target point

B

The more _____ the negotiator, the more likely it is that she or he will make greater concessions. A. vigilant B. risk-averse C. risk-seeking D. confident

B

The negotiator's surplus is the positive difference between: A. negotiators' reservation points B. the settlement outcome and the negotiator's reservation point C. the bargaining surplus and the settlement outcome D. the best and worst possible economic outcomes

B

The term that refers to a negotiator's belief in their ability to effectively claim resources and persuade others to make the majority of the concessions in a negotiation is: A. integrative self-efficacy B. distributive self-efficacy C. emotional intelligence D. the halo effect

B

When both parties to negotiation have the same interests, but fail to capitalize on compatible interests, this situation is best termed: A. naive conflict B. the lose-lose effect C. premature concessions D. the propinquity effect

B

When it comes to using power and making threats in negotiation, all of the following are true except: A. power tends to be reciprocated with power B. by using power it is easy to expand the pie C. a credible threat may restart negotiations D. it often produces a "winner" and a "loser"

B

When using a power-based strategy and issuing an effective threat, a best practice is to: A. be ambiguous about what actions are needed by the other party and unclear about the consequences if they choose to not take action B. make the other party believe that you have the ability to carry out the threat C. avoid threatening the other party's interests, but instead attack them personally D. cut off the discussion pathway back to the discussion once your threat is issued

B

Why is the human tendency to satisfice over the long run of a negotiation relationship, detrimental? A. Satisficing creates a competitive negotiation which affects the potential for pie-expansion. B. The satisficing party settles for a mediocre option, or something less than they could otherwise have. C. The satisficing party's aspirations are too high and therefore they push too aggressively during negotiation, creating a feeling of enmity with the other's party. D. The tendency of a person to see what they want when appraising their performance leads people to selectively seek information that confirms what they believe is true.

B

Win-win negotiation does not pertain to how the pie is ____ but rather, to how the pie is _____ by negotiators. A. enlarged ; divided B. divided ; enlarged C. envisioned ; distributed D. built ; promoted

B

A dispute is best defined as a situation in which: A. parties have to resort to their BATNA's B. parties fail to exchange resources C. a claim is made by one party and rejected by the other party D. negotiators turn down favors and rewards from others

C

As compared to negotiators who focus on maximizing gains, negotiators who focus on minimizing their losses are more likely to: A. reach agreement B. minimize their strategic risks C. make few concessions and reach fewer agreements D. accept a sure thing

C

Being a successful negotiator depends on: A. "outsmarting" the counterparty B. the counterparty's lack of preparation C. experiential learning, feedback, and learning new skills D. always letting the other party tip their hand first

C

By signaling their willingness to share information about their interests, but not their BATNA, a negotiator can capitalize on the powerful principle of reciprocity. Which of the following situations best illustrates the reciprocity principle? A. A cab driver takes a customer to her hotel and picks up a new customer at the hotel B. A woman compliments a friend about her purse and the friend says thank you C. A car salesman shares information about the town where he grew up, and his customer shares that he also grew up near that town D. An employee shares information about a project's progress with a coworker who is uncertain

C

Certain information can be beneficial in the search for integrative negotiation agreements. The types of helpful information that negotiators should share are their _____ and _____ A. BATNA's ; reservation prices B. break-even points ; target points C. preferences ; priorities D. short term goals, urgency of need for the resources discussed

C

Counteroffers accomplish two things; first they signal your willingness to negotiate, and second: A. they establish your reputation B. they help you save face C. they diminish the prominence of the counterparty's initial offer as an anchor point D. they indicate your acceptance of the counterparty's anchor point

C

Effective negotiation involves all except which of the following? A. Deliberate planning B. Thoughtful preparation C. Use of a "gut feeling" or intuition D. Systematic reasoning

C

If the counterparty opens with an "outrageous" offer, the negotiator should: A. lower his/her aspirations B. reveal his/her reservation price C. immediately re-anchor D. appeal to norms of fairness

C

In a positive bargaining zone, negotiators' reservation points overlap. If the parties fail to reach an agreement when a positive bargaining zone exists, the outcome is ______ because ______. A. uneven ; of the chilling effect B. even ; both sides can walk away C. a suboptimal impasse ; the negotiators left money on the table D. unilateral ; negotiators will have to exercise their BATNA's

C

In negotiation, the fixed-pie perception is defined as: A. the assumption that attacking the other party is the best way to get most of the pie B. the assumption that capitulating to the other negotiating party's demands is the best way to a win-win agreement C. the belief that concessions are necessary by one or both parties in order to reach an agreement D. the assumption that sticking to your demands and refusing anything but the majority of the pie is the best way to get most of the pie

C

Negotiators who are high in perspective-taking ability or consider the perspective of the counterparty often: A. increase their sense of empathy but this often decreases their problem-solving abilities B. limit the joint gains they can discover C. identify and reach integrative outcomes in a negotiation D. force the counterparty to make concessions

C

Negotiators who desire to increase their share of the bargaining zone are best advised to: A. set fair aspirations B. reveal their reservation price C. improve their BATNA D. avoid making the first offer

C

Nobel Laureate Herb Simon distinguished optimizing from satisficing. Satisficing is best defined as: A. helping other people B. negotiating a slice of the pie that is much larger than your original aspirations C. settling for something less than you otherwise could have had D. setting high aspirations

C

One of the major shortcomings in negotiation occurs when negotiators make an offer that is too generous and is immediately accepted by the counterparty. This negotiation trap is called: A. egocentrism B. the confirmation bias C. the winner's curse D. the mixed-motive negotiator

C

Regarding effective strategies for a successful negotiation outcome, why should a negotiator be wary of the even-split ploy? A. You can seem altruistic and cooperative by considering an even-split B. By accepting the even-split ploy, you will harm your reputation C. The pattern of concessions is not always fair and the pattern of offers is not always equal D. By not accepting you can invite aggressiveness from the counterparty

C

Regarding the emotions and emotional knowledge that can influence negotiations, what is meant by strategic emotion? A. The behavioral manifestation of felt emotions B. Negative emotions directed at the counterparty C. Carefully designed emotional displays orchestrated to take the counterparty off guard D. Talking about the counterparty behind their back

C

Regarding the interests, rights and power model of disputing, a negotiator who uses a rights-based approach is characterized by: A. addressing the counterparty's most pressing concerns B. applying rank and status biases to the negotiation C. invoking norms and precedents D. learning about the counterparty's underlying needs

C

Sometimes, negotiations break down because negotiators have different beliefs, views, or forecasts that cannot be resolved. Why type of strategy may be useful for crafting deals in these types of situations? A. A contract in which both parties are confident of a positive outcome in any turn of events B. A contract in which negotiators agree on the probability of future events C. A contract wherein negotiators make bets based upon different world occurrences D. A contract in which there is lots of room is left for ambiguity

C

There are three main social value motivational orientations in negotiation: competitive, cooperative, and individualistic. The "cooperative" negotiator prefers to: A. maximize their own gains B. make interpersonal comparisons C. seek equality D. make deductions about other people's motivations

C

What is a disadvantage of single-issue negotiations? A. Allows negotiators to make trade-offs between issues B. Decreases the chance of an impasse C. Does not allow negotiators to logroll interests D. Prevents the parties from being tempted to compromise

C

What is meant by a premature concession in negotiation? A. Concessions that are not offered in a timely fashion B. Concessions that leave the negotiator wondering "what could I have gotten if I had done things differently?" C. When a negotiator makes multiple concessions before the other party responds D. When the counterparty gives up on offering concessions before agreement is reached

C

What is meant by the "issue mix" of a negotiation? A. The concessions each party is willing to make B. The problems that one party has related to their BATNA C. The union of both parties' issues D. The end result of an agreement

C

When a negotiator draws conclusions about the counterparty's true interests from their responses to packages of different offers, the negotiator can discover opportunities for joint gains through the process of: A. substantiation B. perceived power C. inductive reasoning D. the reciprocity principle

C

When a negotiator rejects a proposal that is demonstrably better than any other option available, this is called: A. the agreement bias B. the winner's curse C. walking away from the table or hubris D. settling for too little

C

When formulating counteroffers and concessions, negotiators need to consider three things: A. the starting value, the end value, and the magnitude of concessions B. the fairness, the misuse, and the pattern of concessions C. the pattern, the magnitude, and the timing of concessions D. the impact, the size, and the timing of endowment effects

C

When it is said that economic forces are a key reason for the importance and relevance of negotiation skills, what is meant by that? A. During economic periods of high supply, low demand, negotiators cannot expect to gain much during a negotiation B. Skilled negotiators don't need to take economic forces into account when negotiating C. Economic pressures and forces mean that negotiators need to know how to operate in uncertain and ambiguous environments D. The dynamic, changing nature of business means that people must renegotiate their existence in organizations throughout their careers

C

Which of the following is most true with regard to reaching integrative negotiation agreements? A. Compromise is a method for achieving maximum win-win between parties B. Negotiators should reach agreement to prevent an impasse C. Negotiators should reveal their interests D. Negotiators should not reveal their positions

C

Win-win negotiations are also known as: A. fair division negotiations B. equal-concession negotiations C. integrative negotiations D. distributive negotiations

C

With regard to effective dispute resolution, a method whereby parties learn to prevent similar problems in the future is known as: A. the mediation method B. the wise counselor method C. the postdispute analysis and feedback method D. the crisis procedure method

C

With regard to reputation in negotiation, negotiators who use adversarial, stubborn, and ethically-questionable behavior often have the effect of: A. enhancing their reputations B. improving their business relationships C. being regarded as ineffective D. decreasing their group status

C

A key benefit of post-settlement settlements in negotiation is that they: A. increase anchoring aggressiveness B. are unenforceable C. allow the parties to establish an interim code of a practice deal before the consensus on a final agreement D. allow both parties to mutually improve their outcomes

D

All of the following are effective strategies for negotiators in their attempt to move a rights- or power-based counterparty away from rights/power and back to interests except: A. reciprocating rights or power and combining it with interests-based questions B. suggesting a process intervention (e.g. "Let's talk") C. building in some cooling-off periods during the negotiation D. maintaining distance and avoid meeting the counterparty face-to-face

D

Concerning the multiple methods of fair resource division, which of the following statements is true regarding the equity rule? A. The needs based rule is most commonly used to allocate burdens B. An example of the equity rule is the U.S. legal system C. The equity rule prescribes that outcomes are distributed without regard to inputs D. Distribution should be proportional to a person's contribution

D

Cooperative negotiators often get taken advantage of. Which of the following is a strategy that will help overly cooperative negotiators claim a greater share of resources? A. Avoid delegating the negotiation task to an agent B. Concentrate solely on the bottom line C. Don't tell anyone about his or her negotiation goals to avoid making promises or reporting results D. Insist on commitments, not just verbal agreements

D

Effective negotiation preparation encompasses three general abilities: situation assessment, other-party assessment, and _______. A. financial assessment B. location assessment C. team assessment D. self-assessment

D

In negotiation, the illusion of transparency is best described as occurring when negotiators: A. make predictions when information is in short supply B. make judgments and decisions that differ from rational choices C. make reasonable estimations based on a single known data point D. believe they are revealing more than they actually are

D

In order to reach a successful negotiation outcome, the negotiators must understand that their BATNA is: A. the outcome that the negotiator wishes to achieve B. able to be modified by persuasive offers C. not time sensitive D. determined by objective reality

D

Information technology provides special opportunities and challenges for negotiators. One of the main challenges for negotiators is: A. disposing of old equipment B. training employees in new software C. troubleshooting system security issues D. working in a culture of 24/7 availability

D

Negotiation experience in the absence of _______, is largely ineffective at improving negotiation skills. A. optimism B. successful outcomes C. high profile parties D. diagnostic feedback

D

Negotiators should consider the impact of three types of risk with regard to their alternatives. These three types of risk include: A. tactical risk, strategic risk, and overconfidence risk B. failure risk, BATNA risk, and information-sharing risk C. contractual risk, overconfidence risk, and failure risk D. strategic risk, BATNA risk, and contractual risk

D

Negotiators who have developed a bargaining style that works only within a narrow subset of the business world will suffer unless they can: A. act more competitively B. act more cooperatively C. take risks D. broaden their negotiation skills across businesses, industries, and cultures

D

Regarding 3rd party techniques for dispute resolution, the _____ model involves an arbitrator who makes a decision and places it in a sealed envelope. The threat of the arbitrator's decision sits on the table and is destined to be opened unless the parties reach mutual agreement. A. final-offer arbitration B. conventional arbitration C. med-arb (mediation followed by arbitration) D. arb-med (arbitration followed by meditation)

D

Regarding the interests, rights and power model of disputing, a negotiator who uses a power-based approach is characterized by: A. an interest in reconciling differences in a way that addresses the counterparty's most pressing needs and concerns B. a need to apply standards of fairness to negotiation C. an interest in formalizing parties' rights by law or contract D. using status, rank, threats, and intimidation to prevail

D

Sometimes it is necessary to make a threat in negotiation. In order to make an effective threat, a negotiator needs to threaten: A. the other party's credibility B. aggressively C. and intimidate the other party D. the other party's underlying interests

D

The tendency for people to view their decision making and negotiation abilities in a way that is flattering or fulfilling for them is known as: A. focal points B. self-reinforcing confidence C. reactive devaluation D. egocentrism

D

What factors can lead a negotiator to be uncertain about his or her BATNA? A. Potential alternatives present themselves all at once, giving the person a wide range of choices B. The person is presented with a take it or leave it offer C. The person is not confident in their reservation point D. Potential alternatives arrive sequentially, rather than all at the same time

D

Which of the following is a myth that negotiators often hold about negotiation? A. Whatever is good for one party must be good for the counterparty B. A good negotiator should always approach a counterparty as if they were of equal status C. Good negotiators play it safe and do not take risks D. Good negotiators rely on intuition

D

Which of the following strategies is useful in helping negotiators avoid lose-lose agreements? A. Negotiators should assume that their interests are opposed to the other party's interests B. Negotiators should make some premature concessions to the other party C. Negotiators should have plenty of negotiation experience D. Negotiators should develop an accurate understanding of the other party's interests

D