Negotiation Test Study

What does BATNA stand for; and what does it mean?

Best Alternative to a Negotiated Agreement: the best available action you can take if this deal fails.

Is a BATNA a number or an action?

An action; such as buying elsewhere. You value that action to decide what this deal must offer.

What is a reservation point?

The least favorable deal you will accept; based on the value of your BATNA.

What is a buyer's reservation price?

The maximum price the buyer is willing to pay.

What is a seller's reservation price?

The minimum price the seller is willing to accept.

What is an aspiration or target?

The outcome you hope to achieve. It is different from the worst deal you will accept.

What is an opening offer?

Your first proposal. It can influence the reference point for later bargaining.

What does ZOPA stand for?

Zone of Possible Agreement: the overlap between the parties' acceptable outcomes.

When does a price-only ZOPA exist?

When the buyer's maximum is at least the seller's minimum: seller minimum <= price <= buyer maximum.

How do you calculate the width of a price-only ZOPA?

Buyer maximum minus seller minimum. A negative result means no overlap on price alone.

Buyer maximum $180; seller minimum $135. What is the ZOPA?

From $135 to $180. Its width is $45.

Buyer maximum $110; seller minimum $90; deal $100. How does each benefit relative to their limit?

The buyer pays $10 below the maximum; the seller receives $10 above the minimum.

Buyer maximum $80; seller minimum $100. Is a price-only agreement possible?

No. There is a $20 gap. Explore additional issues or alternatives rather than assuming a price compromise works.

For a multi-issue package; what should you compare with your BATNA?

The value of the entire package; including nonprice terms; rather than just its headline price.

Must you reach a deal for a negotiation to be successful?

No. Walking away is appropriate when available terms are worse than your credible alternative.

What is distributive bargaining?

Claiming a share of existing value. In price-only bargaining; one side's price gain is the other side's loss.

What is an anchor?

A reference point; often an opening offer; that can shape later judgments and offers.

What are objective criteria?

Standards beyond either side's wishes; such as comparable transactions; measurable performance; or consistent policies.

Do objective criteria eliminate all fairness disagreements?

No. Parties may prefer different standards; often because those standards favor their side.

What is perspective-taking in negotiation?

Considering the other side's interests; constraints; and alternatives to understand their choices.

What should a negotiation preparation document include?

Issues and priorities; interests; BATNA and reservation point; target; counterpart assumptions; questions; opening and possible trades.

What is a conditional concession?

Movement linked to something useful in return: If we change payment timing; I can discuss the price.

What are the three parts of the negotiation journal?

Preparation and a behavior goal; immediate reflection; reflection after debrief and counterpart feedback.

How does an observation differ from an interpretation?

An observation describes a checkable event; an interpretation explains what someone thinks it means.

What is an attribution?

An explanation of the cause or motive behind an event; such as assuming someone acted from distrust.

What is an identity threat?

A concern that the dispute challenges who you are; such as being competent; fair; loyal; or deserving.

What is advocacy before inquiry?

Defending a conclusion before investigating the other side's account and relevant evidence.

What is a productive way to open a difficult conversation?

State the purpose; describe specific observations and impact; and invite the other person's account.

How does intent differ from impact?

Intent is what someone meant to do; impact is what happened to others.

Does lack of harmful intent prove there was no unequal impact?

No. Intent and impact are separate questions.

Does unequal impact alone prove a particular motive?

No. It warrants investigation but does not establish exactly what someone intended.

What does acknowledgment mean?

Recognizing someone's experience or concern without necessarily agreeing with every fact or accepting blame.

A manager says; I meant well; so there is no problem. What is wrong?

The manager treats intent as proof about impact. Examine the actual treatment; opportunities; and effects.

What three levels should a durable workplace agreement address?

Substance; relationship; and process.

What is the substance of an agreement?

Concrete terms such as role; resources; compensation; and expectations.

What is the relationship level of an agreement?

Acknowledgment; trust; and how the parties communicate.

What is the process level of an agreement?

Metrics; feedback; review dates; escalation; and how disagreements will be handled.

Why is We will do better and review it later a weak agreement?

It leaves actions; responsible people; criteria; resources; and timing unclear.

What must you check about promises involving people outside the room?

Whether the negotiator has authority and which approvals are still needed.

How can an individual reduce social penalties for negotiating; according to the slides?

Combine assertiveness with friendliness; explain shared benefits; ask questions; and consider coalitions.

What system changes can reduce gender-related negotiation penalties?

Consistent treatment; clear salary ranges and review schedules; and negotiation education and mentoring.

What is the difference between a position and an interest?

A position is a demand; an interest is the reason behind it. Different terms may satisfy the same interest.

What is integrative negotiation?

Creating and claiming value by learning interests and combining issues to serve both parties.

What is a congruent issue?

An issue where both sides prefer the same outcome.

Both sides want June delivery but compromise on July. What went wrong?

They missed a congruent issue and chose a worse result for both.

What is logrolling?

Trading across issues: give on something you value less to gain on something you value more.

Does integrative negotiation require revealing your exact walkaway?

No. Sharing interests and relative priorities can reveal trades without disclosing your precise reservation point.

What two dimensions define the Dual-Concerns Model?

Assertiveness: concern for your own outcomes. Cooperativeness: concern for the other party's outcomes.

In the Dual-Concerns Model; what is competing?

High assertiveness and low cooperativeness.

In the Dual-Concerns Model; what is accommodating?

Low assertiveness and high cooperativeness.

In the Dual-Concerns Model; what is avoiding?

Low assertiveness and low cooperativeness.

How do compromising and problem solving differ?

Compromising meets partway; problem solving actively seeks terms serving both sides. Problem solving is high on both concerns.

Is a compromise automatically the best agreement?

No. Different priorities or shared preferences may allow a better package.

What is the negotiator's dilemma?

Cooperation and disclosure help create value; but each party may fear exploitation and compete in ways that reduce joint value.

What is a Pareto improvement?

A feasible change that makes at least one party better off without making anyone worse off.

What is Pareto efficiency?

No feasible change can improve one party's result without worsening someone else's result.

What is the Pareto frontier?

The set of feasible Pareto-efficient agreements.

What does a point below the Pareto frontier imply?

At least one party could improve without harming anyone. Some value is left on the table.

Does Pareto efficiency mean equal or fair?

No. An unequal allocation can still be Pareto efficient.

Is changing outcomes from (6040) to (7040) a Pareto improvement?

Yes. One party gains and the other stays equally well off.

Is changing outcomes from (6040) to (8030) a Pareto improvement?

No. The second party loses; even though the combined total rises.

What is a contingent contract?

An agreement whose terms depend on a specified future event. It can turn different expectations into a workable deal.

What is the weighted package-score formula?

Add weight x option value for every issue: score = w1*v1 + w2*v2 + ... . Weights sum to 1.

Why should you score your BATNA using the same system as proposed deals?

So the alternative and the deals can be compared on a common basis.

Why can price alone be misleading when comparing packages?

Service; timing; risk; and other terms can outweigh an attractive headline price.

What does indifference checking test in a scoring system?

Whether you really value equal-score packages equally. If not; the scoring system needs revision.

How can option-value ranges distort issue weights?

An issue with a 0-100 range can affect totals more than one with a 0-10 range; even with equal stated weights.

Price weight .5/value 75; service .3/value 60; payment .2/value 100. What is the score?

37.5 + 18 + 20 = 75.5 points.

When might an additive scoring system need adjustment?

When issues interact; such as one term being valuable only if another is included. Score the interaction or the whole combination.

What does MESO stand for?

Multiple Equivalent Simultaneous Offers.

In a MESO; equivalent to whom?

Equivalent in value to you. The other side may prefer one package; which helps reveal their priorities.

How do MESOs help you learn without direct priority disclosure?

The other side's preferences and reactions reveal clues about which features matter most.

How many MESO packages do the slides recommend presenting at once?

No more than three; to avoid overwhelming the counterpart.

The other side rejects all your MESOs. What should you ask?

Which is least objectionable; and why? Ask what prevents it from working.

Why should MESOs remain complete packages?

Their value depends on the combination. Letting the other side cherry-pick can reduce your total value.

Do packages scoring 78; 75.5; and 75 constitute true MESOs?

No. They are multiple offers; but they are not equivalent to you.

How can MESOs help at different stages?

Early: anchor. Middle: learn priorities and trade. Late: explore closeness to acceptable terms; reactions do not prove the exact reservation point.

What are the Federated Sciences coalition totals?

Alone: each 0. Stockman+Turbo: 440K. Stockman+United: 380K. Turbo+United: 300K. All three: 480K.

Why are the 260K; 180K; and 120K algebra values not standalone earnings?

They are weights reproducing pair totals. Each actual standalone coalition earns zero; and those weights sum to 560K rather than 480K.

How do you derive Stockman's algebra weight from pair totals?

s = (440 + 380 - 300)/2 = 260K. Then t=180K and u=120K.

How does equal reduction make the 560K algebra weights fit 480K?

Subtract the 80K excess equally: 80/3 = 26.6667K from each weight.

How does proportional adjustment make those weights fit 480K?

Multiply each by 480/560 = 6/7. Results: about 222.86K; 154.29K; and 102.86K.

How much does United add to an existing Stockman-Turbo coalition?

480K - 440K = 40K. That context-specific contribution is not an automatic entitlement.

How much does Stockman add to an existing Turbo-United coalition?

480K - 300K = 180K.

Is a coalition's total payoff one member's personal BATNA?

No. The individual must secure a share through an actual agreement with the coalition partners.

What is the Shapley value?

A member's average marginal contribution across every possible joining order.

What is a marginal contribution?

The coalition's value after someone joins minus its value immediately before they join.

How many joining orders exist for three parties?

3! = 6 orders.

What does each party add in the joining order Stockman-United-Turbo?

Stockman adds 0; United adds 380K; Turbo adds 100K. Total: 480K.

What is United's corrected Shapley value?

(40 + 380 + 40 + 300 + 0 + 0)/6 = 126.67K; approximately.

What arithmetic error appears in the Shapley slide?

United is printed as 106.67K instead of 126.67K. The corrected three shares sum to the available 480K.

Are Shapley allocations guaranteed bargaining outcomes?

No. They are one principled allocation rule; actual bargaining can produce different shares.

What is a negotiation campaign?

A series of linked negotiations across people or groups whose outcomes affect one another.

What should you consider when sequencing a campaign?

Existing relationships; control of resources; compatible interests; persuadable parties; and how one agreement changes others.

Why should you update your BATNA during multiparty talks?

New alliances can create or remove alternatives and change the consequences of being excluded.

What distinction matters when judging warmth and dominance in the AI study?

Warmth was associated with agreement and value across negotiations; dominance with individual gains conditional on agreement and greater impasse risk.

Why can excellent terms in completed deals be a misleading success measure?

They ignore negotiations that fail. Impasse risk can offset favorable terms when a deal happens.

What were the reported benefits of structured private preparation by AI negotiators?

Strong integrative points and value creation; with high counterpart subjective value.

Why should the AI findings not be treated as proven instructions for human-AI negotiation?

They mostly describe correlations in AI-to-AI; single-encounter tasks; human-AI use needs direct testing.

What are the five intuitive moral foundations in the lecture?

Harm/care; fairness/reciprocity; in-group/loyalty; authority/respect; purity/sanctity.