Lecture 8

Question 1

First-offer extremity

Answer 1

First offers have a major influence on the final price when bargaining(onderhandelen) is possible

Question 2

Anchoring effect

Answer 2

When people provide a counteroffer to initital offers, they insufficiently adjust away from the initial price

Question 3

First offers:

Answer 3

• Correlate with negotiation outcomes
• First movers received more favourable outcomes than second movers
• Extreme first offers led to higher outcomes than moderate first offers
  –> The first-mover claims more value and the first offer functions as an anchor

Question 4

Experts….

Answer 4

-are also susceptible to anchoring effects
- are less likely than amateurs to admit that

Question 5

Locus Of Control (LOC)

Answer 5

The extent to which people think they have control over outcomes in their lives

Question 6

Precision effects (study)

Answer 6

Participants adjusted away from the initital anchor more when it was round vs. when it was precise
–> Scale granularity
–> Attribution of competence

Question 7

Precision effects in markets

Answer 7

• In buyer’s markets, precision helps
• In seller’s markets, precision hurts (the higer the roundness, the better the selling price)

Question 8

.99 prices (study)

Answer 8

• .99 results in perception of cheaper prices, but also lower quality products