2NG3 midterm

negotiation

an interpersonal decision-making process necessary whenever we cannot achieve our objective single-handedly

satisficing

doing just enough to reach one's minimum goals

optimizing

setting high aspirations and attempting to achieve as much as possible

win-win negotiation

situations in which both negotiators optimize the potential joint gains

lose-lose negotiation

situations in which both parties have made sacrifices that are ultimately unwise or unnecessary, resulting in an outcome that both parties find less than satisfying

win-lose negotiations

situations in which one party prevails at the other party's expense

winner's curse/underaspiring negotiator

negotiator that sets their target/aspirations too low and the counterparty immediately agrees

overaspiring/positional negotiator

sets the target point too high and refuses to make any concessions

The grass-is-greener negotiator/reactive devaluation

does not know what they want (only that they want what the other party does not want to give and does not want what the other party is willing to offer)

BATNA

best alternative to a negotiated agreement

focal points

salient numbers, figures, or values that appear to be valid but have no basis in fact

sunk costs

money that has been invested and is irrecoverable

reference points

define what people consider to be a gain or a loss

strategic risk

refers to the riskiness of the tactics that negotiators use at the bargaining table

BATNA risk

given BATNAs of equal expected value, the more risk averse negotiator will be in the weaker bargaining position

contractual risk

refers to the risk associated with the willingness of the other party to honour its terms

counterfactual thinking

thinking or "what might have been" but did not occur

overconfidence effect

refers to a negotiators unwarranted level of confidence in the judgement of their abilities and the likelihood of positive events

party

a person or group who acts in accord with their own preferences

counterparty

the person with whom the focal negotiator (you) are negotiating with

hidden table

parties that are not present at the negotiation table

one shot negotiation

a transaction occurs, and no future ramifications accrue to the parties

transactional negotiations

parties come together to exchange resources

disputes

negotiations take place because a claim has been made by one party and has been rejected by the other party

linkage effects

refer to the fact that some negotiations affect other negotiations

false negotiation

when a person negotiates without any intention to reach an agreement

ratification

refers to whether a negotiating party must have a contract approved by some other body or group

final deadline

a fixed point in time that ends the negotiation

time horizon

the amount of time between the negotiation and the consequences or realization of negotiated agreements

bargaining zone/ZOPA

represents the range between each party's reservation points

ZOPA

zone of possible agreements

bargaining surplus

the amount of overlap between the negotiating parties' reservation points

negotiators surplus

the positive difference between the settlement outcome and the negotiators reservation point

chilling effect

occurs when negotiators make proposals the counterparty considers extreme and can cause the counterparty to be offended and walk away

promotion-focused negotiators

negotiators who conceptualize goals, ideals, and opportunities and excel at claiming value

prevention-focused negotiators

negotiators conceptualize goals as obligations and necessities

the goal setting paradox

negotiators who focus on ideas do not feel as satisfied as negotiators who focus on their reservation point of BATNA

boulwarism

a bargaining style named for Lemuel Boulware, former CEO of General Electric, in which one's first offer is one's final offer.

practitioner-researcher paradox

refers to the fact that intuition and folklore advise negotiators to never open first, yet much scientific research argues that negotiators should always open first due to a "first mover advantage"

anchoring effect

the first offer that falls within the bargaining zone acts as a powerful anchor point for the counterparty's counteroffer

tandem anchoring account

argues that counterparties are influenced by both endpoints of the range as they evaluate the proposer's reservation price as well as how polite they believe an extreme counter-offer would be

concessions

reductions that a negotiator makes during the course of a negotiation

concession reciprocity

refers to the tendency of negotiators to reciprocate concessions

concession aversion

the tendency for some negotiators to be disinclined to make concessions

unilateral concenssions

concessions made by one party

bilateral concenssions

concessions made by both sides

premature concessions

occur when one party makes more than one concession in a row before the other party responds or counteroffers

graduated reduction in tension (GRIT) model

a conflict resolution method in which parties avoid escalating conflict to reach mutual settlement within the bargaining zone

even-split pay

a common concession technique where one party suggests "meeting in the middle" of the offer that is currently on the table

substatiation

refers to arguments or persuasive rational that often accompanies an offer

constraint rationales

rationales referring to one's own limited resources (example: "i can't pay more")

disparagement rationales

rationales that critique the negotiated object or service (example: "it's not worth more")

equality rule

fairness principle that prescribes equal shares for all

equity rule

fairness principle that prescribes that distribution should be proportional to a person's contribution

needs-based rule

fairness principle that states the benefits should be proportional to needs

loyalists

people who prefer to split resources equally, except in antagonistic relationships

saints

people who prefer to split resources equally no matter whether relationships are positive, negative, or neutral

ruthless competitors

people who prefer to have more resources than the other party regardless of relationship

equity principle

states that equity exists in a relationship if each person's outcomes are proportional to his or her inputs

face

the value a person places on their public image, reputation, and status vis-a-vis other people in negotiation

distributive negotiation

negotiation that focus on how negotiators divide resources

integrative negotiation

negotiation that focuses on how negotiators create the resources that will ultimately be divided

compromise

reaching a middle ground between negotiators' positions

multiple equivalent simultaneous offers/MESO strategy

strategy that involves presenting the other party with 2 or more proposals of equal value to oneself

implicit theories

beliefs held by people about personalities

line crossing illusion

the fact that negotiators believe they are coming on too strong, but they are actually not

motivation orientations

goals people have in general social interactions as well as in negotiations

cooperative negotiator

a negotiator who maximizes joint gain and minimizes differences in outcomes

competitive negotiator

a negotiator who desires to maximize the difference between their own and the other's outcomes, thereby "winning" or "beating" the other party

individualistic negotiator

a negotiator who maximizes their own gain and is indifferent to how much the other person is getting

cognitive barriers

barriers that stem from negative stereotypes about women's negotiating abilities

motivational barriers

barriers that stem from the desire to prevent women from excelling in a masculine domain

stereotype regeneration

the process by which members of traditionally stereotype groups redefine their own beliefs about their group

emotions

fleeting states that can be fairly intense and often a result of a particular experience

moods

chronic feelings that are not usually directed at someone

strategic flinch

a verbal or physical display of shock, disgust, or disbelief made to an opening offer

dialectical thinking

the ability to accept inconsistencies in behaviour

backblow effect

the action-reaction cycle that results in genuine anger and diminishes trust in both the negotiator and the counterparty

symmetrical effects

positive expressions yield benefits for the expressor and negative expressions lead to poor outcomes

asymmetrical effects

negative emotions lead to economic benefits for the expressor and positive emotions lead to negative effects

emotional intelligence (EQ)

the ability of people to understand emotions in themselves and to use emotional knowledge to lead to positive outcomes

conflict adaptivity

negotiators ability to adapt their strategy to different conflict dilemmas in accordance with the demands of the situation

resilience

the ability of negotiators to cope with difficulties in negotiation

self-efficacy

a negotiaors' belief in their own negotiation ability

distributive self-efficacy

refers to a negotiators belief in his or her ability to claim resources effectively

integrative self-efficacy

refers to a negotiators belief in his or her ability to create resources

interests

a person's needs, diaries, concerns, and fears (things a person cares about or wants)

rights

standards of fairness in negotiation, including contracts, legal rights, precedent, or expectations based upon norms

power

the ability to coerce someone to do something they would not otherwise do

tit-for-tat

a behavioural strategy that advises negotiators involve in social dilemmas to act prosocially initially, and then do exactly what the counterparty does in each subsequent interaction

false/illusory conflict

negotiators' belief that their interests are incompatible when they actually share compatible interests

fixed-pie perception

negotiators' belief that the counterparty's interests are directly opposed to one's own interests

even splits

refer to how the bargaining zone is divided among the negotiators, but agreeing to an even-split of resources does not signal that the agreement is a win-win for both parties

pareto optimal outcomes

integrative agreements in which all opportunities are leverages so that no resources are left on the table

inductive reasoning

the negotiator can infer what the other party's true interests are and where the joint gains are

logrolling

a strategy of trading off so as to capitalise on different strengths of preference

gain frame

see the glass half full (more likely to logroll or trade-off issues in a win-win fashion)

loss frame

see the glass half empty (more likely to accept a contingent contract)

post-settlement settlement strategy

negotiators agree to explore other options with the goal of finding one that both prefer more than the current one (or one that one party prefers more and the other is indifferent)

turning point

a departure that takes place during the course of the negotiation, when the trajectory seems to change