Human Biases and Ethics in a Negotiation

The video discusses how cognitive biases impact ethical decision-making in negotiations. It introduces several biases, including bounded ethicality, the illusion of superiority, the illusion of control, and the overconfidence effect. Each bias affects how individuals process information and make ethical judgments, often leading to unethical practices or misjudgments. The video emphasizes the importance of recognizing these biases to improve ethical decision-making.

How do cognitive biases influence ethical decision-making in negotiations?

• They enhance our ability to process all information.

• They have no impact on ethical decision-making.

• They can distort our perception of what is ethical.

• They always lead to ethical outcomes.

What is a key characteristic of bounded ethicality?

• Being aware of all ethical considerations.

• Subconsciously excluding certain information.

• Focusing on all available information.

• Considering only the other party's perspective.

What does the illusion of superiority lead to in negotiations?

• A balanced view of all parties' values.

• An overestimation of others' perspectives.

• A disregard for others' values and viewpoints.

• An accurate assessment of ethicality.

Which cognitive bias involves believing one's actions are superior to others?

• Bounded ethicality

• Illusion of control

• Illusion of superiority

• Overconfidence effect

How does the illusion of control affect negotiations?

• It leads to overpromising and potential failure.

• It ensures promises are always kept.

• It reduces the likelihood of unethical behavior.

• It guarantees control over all outcomes.

What is a consequence of the overconfidence effect?

• Making unrealistic assurances.

• Avoiding deception in negotiations.

• Underestimating one's capabilities.

• Accurate self-assessment of abilities.

What can result from failing to recognize the limits of one's abilities?

• Improved negotiation outcomes

• Enhanced control over situations

• Increased ethical awareness

• Deceptive practices