Negotiation

What are some examples of acceptable and taboo trade-offs in negotiation?

1. Acceptable trade-off examples = secular values for secular values (time for money, money for resources, etc.) 2. Taboo trade-off examples = proposals for exchanges of sacred values (body organs for money, assisted suicide, selling daughter in bride auction, destruction of forests, etc.)

Multiparty negotiations are becoming increasingly common negotiation as we become a more globalized world, list (and explain why) these negotiations are more complex and challenging.

1. Coalitions 2. Dividing resources 3. Formulating trade-offs 4. Voting & majority rule 5. Consensus agreements 6. Cultural differences 7. Language barrier 8. Increased competition from a globalized world

The three forms of trust are knowledge, identity, and calculus (or deterrence) based. Be prepared to define and give examples/identify each as well provide recommendations on an example case.

1. Knowledge = grounded in behavioral predictability, occurs when a person has enough information about others to understand them and accurately predict their behavior. (rubber market: seller knows quality but buyer does not; some sellers develop good reputations) 2. Identity = grounded in complete empathy with another person's desires and intentions. Trust exists because each person understands, agrees with, and empathizes with the other's values because of an emotional connection 3. Deterrence = based on consistency of behavior; people will follow through on what they promise to do. (Often involved contracts or surveillance; i.e. company videotaping employees; prenup before marriage)

What are some strategies for maximizing coalitional effectiveness?

1. Make your contacts early 2. Seek verbal commitments 3. Using seemingly unbiased rationale

Give some examples of personal and interpersonal escalation dilemmas.

1. Personal = gambling after losing money; investing in a house that is depreciating; waiting in long lines that aren't moving 2. Interpersonal = union strikes; war; collective bargaining suits

Why are coalitions potentially a risky proposition in negotiation?

1. Risk of reneging 2. Trust and temptation 3. Equal shares bias

What are the psychological reasons for the escalation of commitment phenomenon?

1. Sunk costs and psychological reference point 2. Negotiators have a tendency to persist with a losing course of action; tend to adopt a "loss frame" based on initial investment = loss aversion; negotiators are more likely to engage in greater risk when it comes to trying to recover a loss as opposed to starting with a clean slate

What is the team efficacy effect, and how does it differ from the actual results of team vs. solo negotiations?

1. Team efficacy effect = both teams and solo players believe teams have the advantage 2. Negotiating against a team gives a solo an advantage; amount of jointly available recourses is greater

On what types of tasks would a team outperform an individual? Why?

1. Teams outperform individuals in deals with integrative potential or multiple tasks 2. Individuals outperform teams in extremely competitive tasks

How does the trade-off principle operate within systems of sacred and secular values?

1. Trade-offs between sacred and secular values are taboo (the same can be said for any trade involving sacred values) 2. The trade-off principle is ideal for handling scare resource conflicts containing fungible issues; not for sacred values

Why is trust important in negotiation and what are possible ways to build it throughout the negotiation process?

1. Trust is important because it is an expression of confidence in another person/group that you will not be put at risk, harmed, or injured by their actions; trust means you could be exploited 2. Cognitive strategies for building trust include: agree on common goal; capitalize on network connections; shared enemy; focus on future 3. Affective strategies for building trust include: similarity-attraction effect; mere exposure; physical presence; reciprocity; schmoozing; flattery; mimicry/mirroring; self-disclosure