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
<ITEM><P><INST></INST> 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 (p. 93)
C. want to minimize the difference between negotiators’ outcomes
D. legitimize the counterparty’s needs
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 (p. 88)
Regarding strategies to improve the ability of female negotiators to claim value, one
strategy that can be employed is a process whereby members of traditionally
stereotyped groups redefine the pervasive cultural beliefs about their group and is
known as:
A. realized power modification
B. stereotype regeneration (p.157)
C. primary status characteristics shift
D. social capital renewal
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 (p. 23)
C. the intrinsic value we associate with a certain outcome
D. saving money instead of purchasing goods
Often there are power differences in group negotiation. Unbalanced power relationships
can produce:
A. less coalitions defecting from the larger group
B. fewer integrative agreements (p.222)
C. a reduced likelihood of a bargaining impasse
D. less competitive behavior
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 (p. 43)
D. avoid making the first offer
Of the different types of mental models that guide behavior in negotiation, the most
common type of model is the _____, and is based on the cognitive bias called the
________.
A. partnership model ; hindsight bias
B. problem solving model ; surface level transfer
C. haggling model ; fixed-pie perception (p. 174)
D. game-playing model ; representativeness heuristic
Flaming or acting rudely toward others in negotiation occurs more frequently through
e-mail than in face-to-face interactions because:
A. people feel more status competition when interacting face-to-face
B. people lack social cues and norms when they are on e-mail (p. 316)
C. people are more likely to seek revenge face-to-face than they are electronically
D. people are under the influence of superrationality when interacting electronically
In an ultimatum bargaining situation, one party makes a single and final offer – an
ultimatum – to another party. If the offer is refused, then neither party gets anything.
According to economists, what is the ideal demand to make in an ultimatum game, in
which you can make a single offer that would divide $100 between yourself and another
player?
A. $99.99 (self); $.01 (other) (p. 289)
B. $50 (self) ; $50 (other)
C. $51 (self) ; $49 (other)
D. $100 (self) : $0 (other)
<P>If If you reveal your reservation point during the course of negotiation:
A. the other party has little or no incentive to offer you more (p. 43)
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
In cultures where communications are direct, information exchange in negotiation is
generally:
A. nuanced
B. inferred
C. biased
D. context-free (p.261)
There is a lot of information to process in a negotiation, but negotiators can only
process some of this information. Selective attention can threaten effective problem
solving and creativity, as it is estimated that we perceive about ___% of all information
in our visual field.
A. 99%
B. 60%
C. 20.5%
D. 1% (pp. 193-194)
The _____ route to building trust is based on rational and deliberate thought and
consideration. _____ trust is based on intuition and emotion.
A. business ; personal
B. cognitive; affective (p. 127)
C. casual ; intimate
D. long term ; short term
When a negotiating party is embedded within an organization, several peripheral
players may have an indirect stake in the outcome. A _______ is on the same side of the
negotiation table as the principal but exerts an independent influence on the outcome
through the principal.
A. common-identity group
B. coalition
C. common-bond group
D. constituent (p.228)
In a negotiation situation that has missing or weak social context cues, all of the
following are likely to occur except:
A. negotiators are less concerned about making a good impression
B. humorous remarks can be misinterpreted
C. people feel distant from others and somewhat anonymous
D. the expression of negative emotions are minimized (p.316)
Why is a lengthy amount of time between the negotiation and the consequences of the
negotiated agreement positive or negative?
Describe the four vantage points of power.
Why should negotiators unbundle the issues in a negotiation into multiple issues, rather
than engage in a single-issue negotiation?
Why is face-to-face negotiation the preference of many negotiators? How do
generational differences affect a negotiator’s choice of communication medium?
What are some of the psychological strategies for building trust in a relationship?
What are some of the problems that arise in the determination of one’s target or
aspiration point in a negotiation?