SPD 317/2023 Recap of Wk 4

What does ZOPA stand for?

• Zone of Preferred Agreement

• Zone of Possible Agreement

• Zone of Possible Acceptance

• Zone of Potential Acceptance

What is ZOPA?

• Area where bargaining zones of each party overlapped

• Area where bargaining zones of each party maximized

• Area where bargaining zones of each party minimized

• Area where bargain zones of each party finalized

TWO of the following are true why ZOPA is difficult to reach?

• You do not determine your RP before negotiation

• You do not have a BATNA before negotiation

• You cannot verify if other's offer is valid

• You are not starting to make a first offer

What are three things to consider when making a concession?

• Pattern

• Face saving

• Magnitude

• Timing

• BATNA revealing

...is known when you ask for something outrageous and risk souring the relationship

• Boulwarism

• Chilling effect

• Anchoring effect

• Realistic aspiration

It is a plan of how you will persuade others by supporting your offer with facts.

• Power of authority

• Power of because

• Power of consensus

• Power of reciprocity

What is NOT a principle for fairness criterion?

• Equality rule

• Equity rule

• Reciprocity rule

• Need-based rule

Oftentimes, people use this social comparison for inspiration and motivation

• Upward comparison

• Downward comparison

• Forward comparison

• Compare with similar others

You do not reveal your BATNA unless....

• You are about to walk out without a deal

• You have exhausted your time to negotiate

• You sense that the bargaining zone may be very small or negative

• You trust and like the other party

Why should we not fall for the Even Split ploy?

• There is no such a mid point between two parties

• There is no point from even split falling in ZOPA

• The anchor may not be favorable to us.

• The split means we need to break relationship.