Formulation involves a substantive contribution to negotiations by conceiving and
proposing new
solutions.
It is important to stop negotiating if the other side is not responsive and reciprocal
concessions grow smaller.
Mediators’ interventions are most likely to propose fixed-pie solutions when the
negotiators’ relationship is positive and genuine.
Your first offer should not be a range.
In general, disputants tend to underestimate the extent to which their beliefs are shared
by a third party.
The utility of a gamble equals ________.
A) the extent of uncertainty associated with utility of the gamble
B) the expected utility of its outcomes
C) the actual utility of its outcome or prize
D) the level of risk associated with the gamble
An individual has short listed three properties to build a house on. He has to choose
from these three properties. This is an example of a ________.
A) jagged selection
B) decision making under uncertainty
C) risky choice
D) riskless choice
Which of the following examples indicates the use of the formulation style by a
mediator?
A) During the 1972 crisis between North Yemen and South Yemen, the mediator,
Colonel Moammar Qaddhafi of Libya, offered the delegation leaders of both sides
nearly $50 million in annual aid if they did reach an agreement.
B) During the 1992 crisis between Liberia and Sierra Leone, the Economic Community
of West African States (ECOWAS) successfully structured the bargaining process and
proposed the outcome to which the parties ultimately agreed.
C) During the 1990 crisis between India and Pakistan, the U.S. delegation to Pakistan
communicated that Pakistan’s military was inferior and that the United States did not
intend to help Pakistan in a war.
D) During the 1972 crisis between North Yemen and South Yemen, the mediator,
Colonel Moammar Qaddhafi of Libya, threatened to hold captive the delegation leaders
of both sides if they did not reach agreement.
Warren Manufacturing produces a few small die-cast parts for automobile
manufacturers. The process is repetitive and unvarying, with little scope for change or
improvement. In this situation, which of the following would be an effective method of
handling problems?
A) selective attention
B) the perseverance effect
C) functional fixedness
D) the hindsight bias
Which of the following is explained by the propinquity effect?
A) Catherine only learned to appreciate wine when she began reporting society news
for the paper.
B) Greg went out of his way to help David because David had once loaned him money.
C) From all his employees, Nick picked Gil to be his assistant as they have very similar
personalities.
D) Sara and Warrick became friends when they moved in next door to each other.
The total surplus of the two negotiators adds up to the size of the ________ surplus.
A) target
B) bargaining
C) reservation
D) participative
________ occurs when disputing parties tend to magnify the differences between
themselves and the opposing party or even third parties.
A) False attribution bias
B) Hostile media bias
C) Exaggeration of conflict bias
D) Overconfidence bias
What are the beliefs, customs, and assumptions that form the basis of a group or
culture’s belief system known as?
A) secular values
B) trade-offs
C) sacred values
D) communal values
Which of the following statements is true regarding a BATNA?
A) You should prepare your BATNA after the other party makes their final offer.
B) You should reveal your BATNA early in the negotiation so that the other party will
make appropriate concession to their offer.
C) You should asses the other party’s BATNA and begin your research even before the
negotiations start.
D) You should reveal your BATNA only if the other party reveals their BATNA as this
will help in expanding the bargaining zone.
Sophie is a cooperative negotiator whereas Samantha is a competitive negotiator. Which
of the following is most likely to occur when they negotiate a contract with each other?
A) Sophie will be able to identify Samantha’s reservation point.
B) Samantha will try to use integrative bargaining strategies.
C) Sophie will make the opening offer which would then act as the anchor point.
D) Samantha will not change her motivational orientation during the negotiation.
According to Walton and McKersie’s conceptualization, negotiation is a ________.
A) single-motive enterprise
B) mixed-motive enterprise
C) purely cooperative enterprise
D) purely competitive enterprise
What is the false consensus effect?
A) people’s tendency to underestimate the degree to which their own behavior, attitudes,
beliefs, and so on are shared by other people
B) people’s tendency to infer a causal relationship between two events even though they
don’t know the direction of causality
C) people’s tendency to make a judgment based on what they can remember, rather than
complete data
D) people’s tendency to overestimate the degree to which their own behavior, attitudes,
beliefs, and so on are shared by other people