Negotiation

Question 1

Characteristics of Negotiation

Answer 1

• Two or more parties
• Better outcome from negotiation
• Mutual agreement
• Give and take
• Tangible + Intangible components involved

Question 2

Positional/Distributive Negotiation

Answer 2

Competitive negotiation
- Win/lose
- Relationship not important

Question 3

BATNA

Answer 3

Best Alternative to Negotiated Agreement
- Plan B if negotiations do not work out

Gives power to your negotiation

Question 4

Reservation Value

Answer 4

The minimum that you are willing to accept
- Prevents you from accepting a deal you shouldn’t
- Measure on how much better an offer is

Question 5

Aspiration Value

Answer 5

Best case scenario
- Be reasonable
- Be optimistic

Question 6

Zone of Possible Agreement

Answer 6

Bargaining Zone =

Overlap between
- Buyer’s Reservation Value / BATNA
and
- Seller’s Reservation Value / BATNA

Question 7

Positional Negotiation Downsides

Answer 7

Endangers Relationships

Inefficient

Unwise agreements that do not need underlying needs

Question 8

Principled Negotiation

Answer 8

• Separate people from problem
• Focus on interests, NOT positions
• Invent multiple options for mutual gain
• Insist that result is based on objective standard

Question 9

Examination of Issue

Answer 9

Problem
Diagnosis
Strategies for Curing
Possible Treatments