Exam 2: Strategy and Tactics of Distributive Bargaining

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Alternatives are important because they give the negotiator the power to walk away from any negotiation when the emerging deal is not very good.

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Hardball tactics are designed to

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Whether or not one or both parties in a distributive bargaining situation achieve their objectives will depend upon the strategy and tactics they employ.

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What are the four important tactical tasks for a negotiator in a distributive bargaining situation?

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What are the advantages of adopting a flexible position?

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An offer that may have been rejected had it emerged as a result of concession making may be accepted when it is presented as a fait accompli.

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What can happen when one or both parties do not think they got the best agreement possible?

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Hardball tactics can be handled by discussing or ignoring them.

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The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.

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The resistance point is the point beyond which a person will not go and would rather break off negotiations.

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To communicate the most effective message, a negotiator should try to send a consistent message through both the opening offer and stance.

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How can a negotiation that begins with a negative bargaining range be resolved?

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What is expected from a particular outcome when the resistance point is established?

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What characteristics of the original offer, opening stance and opening concession signal a position of firmness? Of flexibility?

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A negative bargaining range occurs when:

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What are the three ways to manipulate the costs of delay in negotiation?

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It is important to signal to the other party with either behaviour or words that the concessions are almost over.

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A resistance point will be influenced by the cost an individual attaches to delay or difficulty in negotiation.

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The spread between the resistance points is called the bargaining agreement.

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Starting points (or initial offers)

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