Deck 3: Distributive Negotiation: Slicing the Pie

Question 1

The final settlement of a negotiation will fall somewhere ________.

A) above the buyer's target point and below the seller's reservation point
B) above the seller's reservation point and below the buyer's reservation point
C) below the buyer's target point and above the seller's reservation point
D) above the buyer's reservation point and below the seller's target point

Answer 1

B

Question 2

The total surplus of the two negotiators adds up to the size of the ________ surplus.

A) target
B) bargaining
C) reservation
D) participative

Answer 2

B

Question 3

Equity is often used to allocate benefits,but equality is more commonly used to allocate burdens.

Answer 3

False

Question 4

William and Ben are negotiating a maintenance contract.To maximize his slice of the pie,William should ensure that the settlement is as close to ________ as possible.

A) Ben's reservation point
B) his own reservation point
C) Ben's target point
D) the central point in the bargaining zone

Question 5

Since a BATNA is based on subjective factors,it is usually not verifiable.

Question 6

It is appropriate for negotiators to reveal their true reservation price if they trust and like the other party or desire a long-term relationship.

Question 7

The best possible economic outcome for a negotiator is the one that just meets the counterparty's reservation point.

Question 8

Your first offer should not be a range.

Question 9

Bargaining surplus is the amount of overlap between ________.

A) the buyer's target point and the seller's reservation point
B) the buyer's and seller's target points
C) the buyer's and seller's reservation points
D) the buyer's reservation point and the seller's target point

Question 10

Negotiators who make larger and more frequent concessions maximize their slice of the pie,compared to those who make fewer and smaller concessions.

Question 11

Robert wants to sell his old table to Mike.The lowest price Robert is willing to accept is $75 but he wishes to sell it at $105.The highest price Mike is willing to pay for the table is $82 but he wishes to purchase it at $73.What is the value of the bargaining zone?

A) $7
B) $23
C) $2
D) $32

Question 12

Samantha is negotiating a contract.Which of the following is likely to be the most difficult problem she faces during the negotiation?

A) determining her own target point
B) analyzing the terms of the contract
C) understanding the legalities of the contract
D) identifying the other party's reservation point

Question 13

It is to a negotiator's advantage to set a high,somewhat difficult aspiration point early in the negotiation.

Question 14

Which of the following statements is true regarding a bargaining zone?

A) The negative bargaining zone indicates that there is no positive overlap between the parties' target points.
B) The bargaining zone is the range between the negotiators' target points.
C) The final settlement of a negotiation will fall somewhere below the seller's reservation point and above the buyer's target point.
D) In a positive bargaining zone, negotiators' reservation points overlap.

Question 15

The positive difference between the settlement outcome and the bargainer's reservation point is the ________ surplus.

A) reservation
B) target
C) bargaining
D) negotiator's

Question 16

In a positive bargaining zone,the most the buyer is willing to pay is greater than the least the seller will accept.

Question 17

During a negotiation,you should only walk away from the bargaining table if your BATNA is more attractive than the counterparty's offer.

Question 18

The negative bargaining zone indicates that there is no positive overlap between the parties' target points.

Question 19

Negotiations are said to have a mixed-motive nature because ________.

A) negotiators are motivated to maximize the bargaining surplus
B) negotiators find it difficult to determine the other party's reservation point
C) negotiators are motivated to cooperate as well as compete with each other
D) negotiators try to settle the agreement at the central point in the bargaining zone

Question 20

The zone of possible agreements (ZOPA)is the range between ________.

A) the buyer's and the seller's target points
B) the seller's target point and the buyer's reservation point
C) the buyer's and the seller's reservation points
D) the buyer's target point and the seller's reservation point

Question 21

Once you have made an offer,you should ________.

A) wait for other party's response before revising it
B) revise it only if it exceeds the party's target point
C) revise it if it falls in the bargaining zone
D) avoid revising it and try to make it your final offer

Question 22

The first offer that ________ acts as a powerful anchor point in negotiation.

A) creates the focusing effect
B) falls within the bargaining zone
C) creates the chilling effect
D) sets low aspirations

Question 23

Lewicki and Stark identified five types of behavior that some consider to be unethical in negotiations.One of them is traditional competitive bargaining.Which of the following is an example of traditional competitive bargaining?

A) inappropriate information gathering
B) denying information that weakens your position
C) attempting to get your opponent fired
D) exaggerating an initial offer or demand

Question 24

________ concessions are concessions made by one party.

A) Distributive
B) Singular
C) Unilateral
D) Representative

Question 25

Which of the following is a negotiation method in which parties avoid escalating conflict to reach mutual settlement within the bargaining zone?

A) the GRIT model
B) a blue ocean strategy
C) Porter's Five Forces model
D) the Diamond model

Question 26

Which of the following statements is true regarding a first offer?

A) Your first offer should specify a range.
B) The first offer should specify the bargaining zone.
C) Your first offer should be your final offer.
D) The first offer generally acts as an anchor point.

Question 27

During a negotiation you should ________.

A) set your aspirations low in order to avoid disappointment later
B) make your first offer slightly lower than the other party's reservation point
C) make sure that your first offer creates the chilling effect
D) set your reservation point slightly higher than the other party's target point

Question 28

It is an almost universal norm that concessions take place in a quid pro quo fashion,meaning that negotiators expect ________.

A) that the party who made the opening offer should make the highest concession
B) the opening offer to be the anchoring offer
C) a back-and-forth exchange of concessions between parties
D) the final offer to be very close to the opening offer

Question 29

Ben is negotiating a sales contract.The most valuable piece of information Ben can have about the counterparty is ________.

A) the counterparty's target point
B) the negotiator's surplus expected by the counterparty
C) the counterparty's reservation point
D) the bargaining surplus expected by the counterparty

Question 30

The ________ occurs when the negotiator's first offer is immediately accepted by the counterparty.

A) framing effect
B) winner's curse
C) distinction bias
D) chilling effect

Question 31

Robert is negotiating a contract.In which of the following situations is it appropriate for Robert to reveal his reservation point?

A) Robert knows that the other party has a great BATNA and an aggressive reservation price.
B) Robert has a poor BATNA and a weak reservation price.
C) Robert knows the other party's target point and finds it high.
D) Robert does not have time to negotiate and senses that the bargaining zone may be very small.

Question 32

The party who ________ obtains a better final outcome.

A) focuses on avoiding negative outcomes
B) sticks to their reservation point
C) sets low aspirations
D) makes the first offer

Question 33

Which of the following statements is true regarding effective concessions?

A) The party who made the opening offer should avoid making any concessions to its offer.
B) To maximize their slice of pie, the negotiators should make larger and more frequent concessions.
C) Negotiators should offer only a single concession at a time and avoid frequent concessions.
D) Negotiators should make consistently greater concessions than the counterparty.

Question 34

Which of the following is known as an anchor point?

A) the offer which creates the chilling effect
B) the highest target point in the negotiation
C) the first offer made during the negotiation
D) the lowest reservation point during the negotiation

Question 35

The strategy of making one's first offer one's final offer is known as ________.

A) illusion of control
B) the blue ocean strategy
C) the gambler's fallacy
D) boulwarism

Question 36

During a negotiation which of the following is likely to result in greater profit?

A) making your first offer your final offer
B) focusing on avoiding negative outcomes
C) setting easy and nonspecific goals
D) setting high aspirations and focusing on them

Question 37

Once you have offered a concession,you should wait for the counterparty before making further concessions.This conclusion rests on which of the following assumptions?

A) Your counterparty has a very low reservation point.
B) Unilateral concessions decrease the size of the bargaining zone.
C) Your counterparty's offer is not at their reservation point.
D) Your counterparty's first offer is now the anchor point.

Question 38

You are negotiating an important sales contract for your organization.Which of the following,if true,would increase the risk of you being anchored by the other party's opening offer?

A) You have a weak BATNA.
B) You have not yet planned your opening offer.
C) The other party's opening offer is less than your reservation point.
D) The other party's opening offer falls in the bargaining zone.

Question 39

Which of the following statements is true regarding face threat sensitivity (FTS)?

A) People with high FTS have little or no ability to detect and respond to face threats.
B) A seller who has little or no reaction to a face threat is said to have high FTS.
C) A negotiator's FTS is the likelihood of having a negative reaction to a face threat.
D) In employment negotiations, job candidates are less likely to make win-win deals if they have low FTS.

Question 40

Negotiators who focus on their target points do better in terms of slicing the pie but these negotiators do not feel as satisfied as negotiators who focus on their reservation point or BATNA.This is known as the ________.

A) goal-setting paradox
B) chilling effect
C) winner's curse
D) minimal group paradigm

Question 41

Which of the following is an instance of the application of the needs-based rule?

A) the U.S. legal system
B) the U.S. welfare system
C) the freemarket system
D) the two-party system

Question 42

Discuss the guidelines for distribution of resources.

Question 43

Which of the following fairness principles prescribes equal shares for all?

A) blind justice
B) equity rule
C) welfare-based allocation
D) reciprocal rule

Question 44

The free market system in the United States is an example of the ________ rule.

A) equality
B) welfare-based allocation
C) equity
D) needs-based allocation

Question 45

The equity rule states that ________.

A) output should be distributed without regard to input
B) benefits should be proportional to need
C) everyone should receive equal benefits
D) distribution should be proportional to a person's contribution

Question 46

Discuss the significance of procedural justice during negotiation.

Question 47

Which of the following rules of fairness is most likely to be related to incidents involving nurturing and personal development?

A) the equality rule
B) the needs-based rule
C) the equity rule
D) the reciprocal rule

Question 48

Which of the following types of comparisons is most likely to inspire people to greater achievement?

A) upward comparison
B) horizontal comparison
C) downward comparison
D) lateral comparison

Question 49

Negotiators often use one of three fairness principles when it comes to slicing the pie.Which of the following is one of these three principles?

A) the procedural rule
B) the needs-based rule
C) the traceability rule
D) the reciprocal rule

Question 50

In which of the following cases would an equity-based allocation of resources be most indicated?

A) The Accounts team received a cash reward for being the top-performing team in the company. The team decided to split the cash among all members.
B) A popular course at a university attracts a large number of candidates because the course is subsidized. The university needs to allot the few seats among the many applicants.
C) An organization that collects funds for charity receives applications from a number of charities each year.
D) A start-up is in the process of arranging healthcare insurance for its employees.