S1. Nature of Negotiation: declare vs create value

To most people, the terms “bargaining” and “negotiation” are

• mutually exclusive.

• interchangeable.

• not related.

• interdependent.

A situation in which both parties are trying to find a mutually acceptable solution to a complex conflict is known as which of the following?

• mutual gains

• win-lose

• zero-sum

• win-win

Which is not a characteristic of all negotiation situations?

• conflict between parties

• two or more parties involved

• an established set of rules

• a voluntary process

Tangible factors

• include the price or terms of agreement.

• are psychological motivations that influence the negotiations.

• include the need to look good in negotiations.

• cannot be measured in quantifiable terms.

Which of the following is not an intangible factor in a negotiation?

• the need to look good

• final agreed upon price on a contract

• the need to appear “fair” or “honorable”

• to maintain a good relationship

Interdependent parties’ relationships are characterized by

• interlocking goals.

• solitary decision making.

• established procedures.

• rigid structures.

A zero-sum situation is also known by another name. Which of the following terms means the same as “zero sum”?

• integrative

• distributive

• win-lose

• mutual adjustment

BATNA stands for

• best alternative to a negotiated agreement.

• best assignment to a negotiated agreement.

• best alternative to a negative agreement.

• best alternative to a negative assignment.

What are the two dilemmas of negotiation?

• the dilemma of cost and the dilemma of profit margin

• the dilemma of honesty and the dilemma of profit margin

• the dilemma of trust and the dilemma of cost

• the dilemma of honesty and the dilemma of trust

Which of the following statements is not true of concessions?

• A concession happens when one party suggests alterations to the other party’s proposal.

• Concessions restrict the range of solution options.

• When a party makes a concession, the bargaining range is constrained.

• A concession happens when one party agrees to make change in their own position.