Q: What is negotiation?
A: Negotiation is a decision-making process among interdependent parties who do not share identical preferences.
Q: Where do we encounter negotiation?
A: In many contexts — such as pricing products, job offers, mergers, buying a house, or even choosing a movie.
Q: What is distributive negotiation?
A: A win-lose approach where a fixed amount of resources (“fixed pie”) is divided between parties.
Q: What is integrative negotiation?
A: A win-win approach that seeks mutual problem-solving to expand the total value or resources available.
Q: Can distributive and integrative negotiations happen simultaneously?
A: Yes — both strategies can occur at the same time in a single negotiation.
Q: What is a target point?
A: The outcome you would like to achieve.
Q: What is a resistance point?
A: The lowest or least favorable outcome you are willing to accept.
Q: What does BATNA stand for?
A: Best Alternative To a Negotiated Agreement.
Q: Why is identifying your BATNA important?
A: It helps you know when to accept or reject an offer — you should never accept less than your BATNA.
Q: What should you also learn about your opponent’s BATNA?
A: The more you know about their alternatives, the stronger your bargaining position becomes.
Q: What was the BATNA in the class negotiation exercise?
A: Zero — not accepting or offering the job (not “splitting the difference”).
Q: Why is planning critical to negotiation?
A: Preparation defines your goals, boundaries, and strategy — lack of planning often leads to failure.
Q: What should planning include?
- Define your negotiation zone.
- Set resistance and target points.
- Determine when to walk away.
Q: How does planning help?
A: It clarifies acceptable outcomes and prevents emotional or impulsive decisions.
Q: What are the main integrative strategies?
Build trust and share information.
Emphasize similarities, minimize differences.
Ask many questions to uncover true needs.
Give away some information strategically.
Make multiple offers at once.
Search for novel, mutually beneficial solutions.
Q: Why ask lots of questions during negotiation?
A: To understand the other party’s true objectives and uncover integrative opportunities.
Q: What does “search for a novel solution” mean?
A: Find creative ways to satisfy both sides’ goals rather than compromise on everything.
Q: What is irrational escalation of commitment?
A: Continuing to invest in a losing position instead of cutting losses (e.g., “try, try again—then quit”).
Q: What is the mythical fixed-pie belief?
A: The false assumption that one party’s gain automatically means the other’s loss.
Q: What is anchoring and adjustment?
A: Using an initial reference point (anchor) that biases all future decisions and adjustments.
Q: How can you prevent anchoring bias?
A: Do your homework and gather accurate data before negotiations begin.
Q: What are strategies to strengthen your bargaining position?
Begin positively and respectfully.
Address problems, not personalities.
Ignore extreme initial offers.
Emphasize win-win outcomes.
Create an open, trusting environment.
Q: Why focus on problems and not personalities?
A: Personal conflict distracts from finding practical solutions and harms relationships.
Q: What does “pay little attention to initial offers” mean?
A: Early offers often serve as anchors — don’t let them dictate your perspective.
