MGT3303 1>>8

Cost-benefit analysis model

A businessperson calculates the odds of every purchase decision in order to maximize returns on an investment. Which of the following mental models is this businessperson using?

a claim is made by one party and rejected by the other party

A dispute is best defined as a situation in which:

allow both parties to mutually improve their outcomes

A key benefit of post-settlement settlements in negotiation is that they:

contingency contract

A major obstacle to reaching integrative negotiation agreements is negotiators' beliefs about the outcome of some future event. A ________ is a type of agreement in which parties leverage differences of opinion to form an integrative agreement.

there is no positive overlap between the parties' reservation points

A negative bargaining zone indicates that:

walk away from the negotiation table

A negotiator's BATNA (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to:

BATNA

A negotiator's reservation point is a quantification of the negotiator's:

job title

A negotiator's status is the relative social position given to the negotiator by others. Which of the following is an example of a primary status characteristic?

the tendency of people to see what they want to see when evaluating a situation for themselves

A number of biases affect a negotiator's ability to negotiate effectively. One of these biases, the confirmation bias, is best defined as:

a negotiator who does not know what he or she really wants other than not wanting what the other party is offering

A type of negotiation behavior known as reactive devaluation refers to:

BATNA

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:

joining forces to compete against a common enemy

All of the following are effective strategies for transforming personal conflict into task conflict except:

make few concessions and reach fewer agreements

As compared to negotiators who focus on maximizing gains, negotiators who focus on minimizing their losses are more likely to:

more likely to logroll or trade off issues in a win-win fashion

As compared to negotiators who focus on minimizing costs (loss-frame), negotiators who focus on maximizing gains are:

Stop negotiations and pursue other alternativesf

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?

experiential learning, feedback, and learning new skills

Being a successful negotiator depends on:

learning and adjusting to different norms of communication between parties

Besides language and currency issues, one of the main challenges that globalization presents for negotiators is:

A car salesman shares information about the town where he grew up, and his customer shares that he also grew up near that town.

By signaling their willingness to share information about their interests, but not their BATNAs, negotiators can capitalize on the powerful principle of reciprocity. Which of the following situations best illustrates the reciprocity principle?

preferences; priorities

Certain information can be beneficial in the search for integrative negotiation agreements. The types of helpful information that negotiators should share are their ________ and ________.

Distribution should be proportional to a person's contribution.

Concerning the multiple methods of fair resource division, which of the following statements is true regarding the equity rule?

A man strikes up a conversation with an older gentleman reading the same book as he is.

Considering the psychological mechanisms for building trust between negotiators, which of the following situations best illustrates the similarity-attraction effect?

Insist on commitments, not just verbal agreements

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?

they diminish the prominence of the counterparty's initial offer as an anchor point

Counteroffers accomplish two things; first they signal your willingness to negotiate, and second:

A person learns that 60% of a country's population is uneducated and that 70% of the crimes in that country are violent, and concludes that uneducated people are responsible for the violent crime rates.

Different cognitive biases can threaten a negotiator's effective problem solving and creativity. Of those threats, which of the following scenarios best illustrates the illusory correlation bias?

gender differences, such that the advantage in the negotiation will be with the stereotype-consistent gender

During a negotiation, the greater the amount of situational ambiguity, the more a negotiation will be affected by:

Use of a "gut feeling" or intuition

Effective negotiation involves all except which of the following?

self-assessment

Effective negotiation preparation encompasses three general abilities: situation assessment, other-party assessment, and ________.

Asks negotiators how comfortable they would be if their behavior were revealed in full in a public format

Given that negotiators' judgments of ethical behavior are often biased, what is the "front-page test" and how might it help negotiators make ethical decisions in a negotiation?

To reach a settlement that is most favorable to himself or herself and does not give up too much of the bargaining zone

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?

Misrepresentation

If the counterparty does not believe you actually have a BATNA, and you allude to options you do not actually have, this would be considered ________.

make a counteroffer in a timely fashion

If the counterparty makes the first offer, negotiators are best advised to:

immediately re-anchor

If the counterparty opens with an "outrageous" offer, the negotiator should:

the other party has little or no incentive to offer you more

If you reveal your reservation point during the course of negotiation:

a suboptimal impasse; the negotiators left money on the table

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 ________.

self-organizing arrangements

In contrast to negotiating with friends who allocate resources based on communal norms, businesspeople are much more likely to use ________.

it is generally wise to reveal it

In negotiation which of the following statements is generally not true when it comes to a negotiator's BATNA?

false conflict

In negotiation, ________ occurs when people believe that their interests are incompatible with the other party's interests, but, in fact, they are actually compatible.

a tendency for people to value an object more once they own it

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:

Measurability

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:

counterfactual thinking

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 ________.

believing that the counterparty's interests are directly opposed to one's own interests

In negotiation, people often have faulty perceptions. The fixed-pie perception refers to:

the belief that concessions are necessary by one or both parties in order to reach an agreement

In negotiation, the fixed-pie perception is defined as:

believe they are revealing more than they actually are

In negotiation, the illusion of transparency is best described as occurring when negotiators:

logrolling

In negotiation, the strategy of making concessions on low-priority issues in exchange for gains on high-priority issues is known as:

have a high degree of clarity and measurability

In order for contingency contracts to be viable and useful in negotiation, they must:

Negotiate on behalf of a group

In order to increase her perceived power in a negotiation, what negotiation strategy can a woman use to feel more confident expressing her interests, making more assertive offers, and holding out for better terms?

determined by objective reality

In order to reach a successful negotiation outcome, the negotiators must understand that their BATNA is:

target point

In preparing for negotiation, a negotiator needs to determine what would constitute an ideal outcome, or favorable set of terms, also known as a ________.

understand emotion

In regard to reestablishing trust, a negotiator's ability to ________ is directly related to how satisfied the other party feels, independent of the monetary value of the outcome.

working in a culture of 24/7 availability

Information technology provides special opportunities and challenges for negotiators. One of the main challenges for negotiators is:

suspicion

Negative emotions don't always negatively affect outcomes. Which of the following negative states can foster the development of integrative outcomes in negotiation because it can drive a search for information?

diagnostic feedback

Negotiation experience in the absence of ________ is largely ineffective at improving negotiation skills.

have incentives to cooperate as well as compete

Negotiation is a mixed-motive enterprise, which refers to the fact that parties:

an interpersonal decision-making process necessary whenever people cannot achieve their objectives single-handedly

Negotiation is best described as:

risk-seeking; risk-averse

Negotiators can focus on gains or losses during a negotiation. Most negotiators are ________ when it comes to losses, and ________ when it comes to gains.

decreasing inhibition

Negotiators must be aware that experiencing and using power have a number of social and cognitive effects on the power user such as:

propinquity effect

Negotiators often develop trusting, long-term relationships with people who are physically close to them, or located nearby. This effect is known as the:

arrogance

Negotiators often make dispositional, as opposed to situational, attributions for the questionable behavior of the other party, which can threaten trust. Which of the following can be characterized as a dispositional attribution for a negotiator's late arrival to a meeting?

money you have invested, that is, for all practical purposes, spent

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:

strategic risk, BATNA risk, and contractual risk

Negotiators should consider the impact of three types of risk with regard to their alternatives. These three types of risk include:

identify and reach integrative outcomes in a negotiation

Negotiators who are high in perspective-taking ability, or consider the perspective of the counterparty, often:

partnership model

Negotiators who ascribe to the ________ believe it is important to build rapport to nurture a long-term relationship and, in many cases, to make sacrifices for the purpose of creating long-term goodwill.

building

Negotiators who desire to have a successful brainstorming session should follow several rules, including the ________ rule, which specifies that members of the group should try to modify and extend the ideas suggested by other members of the group.

improve their BATNA

Negotiators who desire to increase their share of the bargaining zone are best advised to:

broaden their negotiation skills across businesses, industries, and cultures

Negotiators who have developed a bargaining style that works only within a narrow subset of the business world will suffer unless they can:

arbitrary values

Negotiators who make the mistake of not developing a reservation point before they negotiate often focus on:

the processes by which decisions are made, the methodology behind how resources are distributed, and how outcomes are determined

Negotiators' evaluations of the fairness of procedures determine their satisfaction and willingness to comply with negotiated outcomes. Procedural justice is best defined as:

assume commonality between objects of similar appearance

Negotiators' faulty judgments of people can often be traced to the representativeness heuristic, a cognitive bias in which people:

settling for something less than you otherwise could have had

Nobel Laureate Herb Simon distinguished optimizing from satisficing. Satisficing is best defined as:

The reciprocity principle

Of the different psychological methods that negotiators can employ to build trust with the counterparty, the use of which principle can make a counterparty feel obligated to return in kind what the negotiator has offered or given to them?

Training programs

Of the different techniques that can remedy threats to problem solving and enhance creativity in negotiation, what is the most effective means of improving a negotiator's ability to reach win-win agreements?

The tendency to continue to believe that something is true even when it is revealed to be false or disproved

Of the different threats to effective problem solving and creativity in negotiation, what is the perseverance effect?

haggling model; fixed-pie perception

Of the different types of mental models that guide behavior in negotiation, the most common type of model is the ________, and it is based on the cognitive bias called the ________.

nonspecific compensation

Of the different ways that a negotiation agreement can be reached using a creative approach, the ________ approach awards one of the negotiating parties by some method that was initially outside the bounds of the negotiation.

are expensive to develop and maintain

Of the three types of trust systems that can be formed in relationships, knowledge-based trust systems:

bridging

Often, it is not possible for negotiators to find a compromise solution; expanding the pie does not work, and neither party can get what he or she wants in a trade-off. A(n) ________ solution creates new alternatives that can meet both parties' underlying interests.

the winner's curse

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:

false consensus effect

One psychological bias that can lead to faulty judgments in negotiation is the ________, which refers to the fact that most people think others agree with them more than is actually the case.

once we form a negative impression of someone, we tend to view everything else about them in a negative fashion

One reason why it is difficult for negotiators to recover from making a bad impression is related to the "forked tail effect" which means that:

improve your alternative options before going to the negotiation table

One strategy for improving one's BATNA in negotiation is to:

their intrinsic motivation may be reduced

People often have a negative reaction when they perceive that someone is controlling their behavior or limiting their freedom. When people think their behavior is controlled by extrinsic motivators:

Social power; personal power

Power in negotiation is based on a negotiator's perceived ability to influence others. Two types of power exist that relate to power influence: ________ is the power people have over other people; ________ is the freedom people have from other people's power influence.

more accurate in perceiving the attitudes of those in higher power

Powerful negotiators need to be aware of the psychological effects of using power tactics on negotiators who are in a less powerful position. Negotiators with less power are:

PreSS are formal and binding.

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?

arb-med (arbitration followed by meditation)

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.

Power increases negotiators' feelings of control over outcomes outside of their actual influence abilities.

Regarding a powerful negotiator's use of power and the social and cognitive effects that it can have on the negotiator, which of the following statements is most true?

The pattern of concessions is not always fair, and the pattern of offers is not always equal.

Regarding effective strategies for a successful negotiation outcome, why should a negotiator be wary of the even-split ploy?

leave money on the table because they fail to recognize and exploit opportunities for mutual gain

Regarding some of the major shortcomings that negotiators struggle to overcome, "lose-lose" negotiation occurs when negotiators:

Men grant themselves more leniency in ethics than do women.

Regarding the differences in gender and ethical standards, what is meant by the male pragmatism hypothesis?

invoking norms and precedents

Regarding the interests-rights-power model of disputing, a negotiator who uses a rights-based approach is characterized by:

an interest in the counterparty's underlying needs, desires, and concerns

Regarding the interests-rights-power model of disputing, a negotiator who uses an interests-based approach is characterized by:

task conflict

Regarding the types of conflict that can occur in relationships, ________ is a depersonalized form of conflict consisting of argumentation about the merits of ideas, plans, and projects, independent of the identity of the people involved.

reduces a negotiator's power in a negotiation

Revealing information about a BATNA or a reservation point:

respect and subordination of the counterparty

Some negotiators are tempted to lie to the other party in a negotiation. Lying to the counterparty may result in all of the following except:

chilling effect

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 contract wherein negotiators make bets based upon different world occurrences

Sometimes, negotiations break down because negotiators have different beliefs, views, or forecasts that cannot be resolved. What type of strategy may be useful for crafting deals in these types of situations?

environmental costs in terms of people being less cognizant about their effect on natural resources

The "costs" of lying in negotiation include all of the following except:

feelings about their relationships

The Subjective Value Inventory is a survey that assesses the four major concerns held by negotiators: feelings about their instrumental outcomes, feelings about themselves, feelings about the negotiation process, and:

bargaining surplus

The ________ is a measure of the value that a negotiated agreement offers to both parties over the value of not reaching a settlement.

Overestimating the type or number of people in a certain category because it is easier to bring instances of this group or category of people to mind

The availability heuristic is a cognitive bias that can affect the accuracy of negotiators' judgments. Which of the following best describes the availability heuristic?

the counterparty's interests are directly opposed to one's own

The fixed-pie perception is a cognitive bias in which negotiators believe that:

risk-averse

The more ________ the negotiator, the more likely it is that she or he will make greater concessions.

the settlement outcome and the negotiator's reservation point.

The negotiator's surplus is the positive difference between:

particularism; concreteness

The resources that people exchange in a relationship vary in terms of ________, or how much utility we derive from who is providing the resource, and ________, or the resource's tangibility.

Egocentrism

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:

the reservation point

The term used to represent the quantification of a negotiator's BATNA with respect to other alternatives is known as:

they are expensive to develop and maintain

There are two key problems with deterrence-based trust systems. First, they can backfire, and second:

The hindsight bias

What bias accounts for the tendency of negotiators to think that integrative agreements are obvious after the fact, but fail to see them when encountering a novel negotiation?

Potential alternatives arrive sequentially, rather than all at the same time

What factors can lead a negotiator to be uncertain about his or her BATNA?

Does not allow negotiators to logroll interests

What is a disadvantage of single-issue negotiations?

When a negotiator makes multiple concessions before the other party responds

What is meant by a premature concession in negotiation?

The union of both parties' issues

What is meant by the "issue mix" of a negotiation?

Compare multiple examples that all illustrate a similar idea or strategy

What technique decreases the inert knowledge problem in negotiation and increases people's ability to transfer knowledge they possess when faced with a situation that could potentially benefit from that knowledge?

empathy

What type of thinking/feeling encourages negotiators to avoid ethically-questionable behaviors such as attacking an opponent's network, misrepresentation, and feigning emotions?

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.

What vicious cycle occurs when negotiators are affected by the self-reinforcing incompetence bias?

inductive reasoning

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:

walking away from the table or hubris

When a negotiator rejects a proposal that is demonstrably better than any other option available, this is called:

the lose-lose effect

When both parties to negotiation have the same interests but fail to capitalize on compatible interests, this situation is best termed:

One's reputation is only important to consider if one is a leader or CEO.

When considering a person's reputation in negotiation, which of the following is most true?

the pattern, the magnitude, and the timing of concessions

When formulating counteroffers and concessions, negotiators need to consider three things:

an embedded relationship

When friends and family do business together, the relationship is more complex and is known as:

A salesperson, when confronted by a problem with a customer order, cannot remember a similar, previous situation that was in a different context.

When it comes to learning, negotiators often fail to apply knowledge from past situations to the present problem. Which of the following scenarios best illustrates the inert knowledge problem?

by using power it is easy to expand the pie

When it comes to using power and making threats in negotiation, all of the following are true except:

Economic pressures and forces mean that negotiators need to know how to operate in uncertain and ambiguous environments

When it is said that economic forces are a key reason for the importance and relevance of negotiation skills, what is meant by that?

respond to each other's needs without expectation of being repaid

When negotiating with friends, it is important to recognize that many friendships are built on communal norms. People in communal relationships:

integrate their interests and work together

When negotiators are described as being interdependent, that means people need to know how to:

Problem-solving model

Which mental model of negotiation focuses on the collaborative or cooperative aspects of the negotiation task and involves a great deal of creativity, reframing, and out-of-the-box thinking?

Good negotiators rely on intuition

Which of the following is a myth that negotiators often hold about negotiation?

A person's cultural background

Which of the following is an example of a secondary status characteristic in negotiation?

Negotiators should reveal their interests.

Which of the following is most true with regard to reaching integrative negotiation agreements?

Arrange a personal meeting and let the counterparty vent.

Which of the following should be one of the first steps a negotiator should take to effectively repair broken trust?

The more negotiators have to gain economically by lying, the more likely they are to lie.

Which of the following statements is most true about people's tendency to engage in deception in negotiation?

Negotiators should develop an accurate understanding of the other party's interests.

Which of the following strategies is useful in helping negotiators avoid lose-lose agreements?

Bounded ethicality

Which of the following terms refers to people's limitations to make ethical decisions in a negotiation because they are either unaware of or fail to process information?

People may believe they are behaving ethically, but their self-serving tendencies interfere with good decision making.

Why is it important to be wary of ethical behavior during a negotiation?

.The satisficing party settles for a mediocre option, or something less than they could otherwise have.

Why is the human tendency to satisfice over the long run of a negotiation relationship detrimental?

divided; enlarged

Win-win negotiation does not pertain to how the pie is ________, but rather to how the pie is ________ by negotiators.

integrative negotiations

Win-win negotiations are also known as:

the postdispute analysis and feedback method

With regard to effective dispute resolution, a method whereby parties learn to prevent similar problems in the future is known as:

emotional intelligence

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:

Making a very high or low opening offer

With regard to ethically-questionable behavior in negotiation, which of the following scenarios is the best example of a traditional competitive bargaining strategy?

Men claim a larger share of the bargaining surplus; however, women are able to perform better when cultural stereotypes are made explicit.

With regard to gender and power in negotiation, which statement is most true?

as positive, dominant, warm; as negative, dominant, cold

With regard to how power and status affect people's perceptions in negotiation, high-status people, regardless of their actual power, are perceived ________, but high-power, low-status individuals are judged ________.

Observational learning and analogical learning both lead to improved performance.

With regard to improving one's negotiation performance via training and experience, which of the following statements is most true?

Lies about BATNAs are equivalent to lying about material facts, and therefore, the lying party is at legal risk.

With regard to lying about one's BATNA in negotiation, which of the following is advisable?

are principled

With regard to negotiation style, truly effective negotiators are neither tough nor soft, but rather they:

being regarded as ineffective

With regard to reputation in negotiation, negotiators who use adversarial, stubborn, and ethically-questionable behavior often have the effect of:

Allowing the injured parties express their feelings is an important step.

With regard to successfully repairing broken trust in negotiations, which of the following is most true?