What are the Anchor Point and Bargain Range in a Negotiation

The video tutorial explains the concept of anchor points and bargaining range in negotiations. It highlights the importance of the zone of potential agreement and strategic considerations when setting anchor points. The tutorial emphasizes the need for informed requests and the role of information in anchoring. It also discusses procedural fairness and its impact on negotiation success.

What are anchor points in a negotiation?

• The midpoint of the negotiation

• The initial offers made by parties

• The final agreement between parties

• The reservation points of parties

Why is it important to make a reasonable request when setting an anchor point?

• To avoid making any concessions

• To align with the other party's perception of acceptability

• To make the negotiation process faster

• To ensure the other party is deterred from negotiating

What should you do if you lack information about the other party's valuation?

• Allow the other party to anchor first

• Make an outlandish offer

• Raise your anchor point

• Avoid negotiating altogether

What is the consequence of raising your anchor point after it is set?

• It is seen as procedurally fair

• It strengthens your negotiation position

• It is perceived as procedurally unfair

• It leads to an immediate agreement

Why is the procedure of negotiation as important as the substantive interest?

• Because it helps in arriving at a negotiated agreement

• Because it ensures a faster negotiation process

• Because it reduces the need for anchor points

• Because it allows for more concessions