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29 Cards in this Set

  • Front
  • Back

Consequence Table

Clear way to compare the alternatives and their consequences for each objective. Even Swap

Dominated Alternatives

A way to eliminate alternatives in a consequence table so it is easier to make a decision. If alternative A is better than Alternative B on some objectives and no worse than alternative B on all objectives, B can be eliminated from consideration.

Even Swap Method

adjust the objectives of various alternatives to make them all equivalent. Allows you to eliminate objectives. Ex: swap price for frequent flyer miles.

Even Swap Process Steps

1. Determine the change necessary to cancel out an objective.


2. Assess what change in another objective would compensate for the needed change.


i.e. what increase in market share would compensate for the loss of profit?


3. Make the even swap.

Distributive Negotiations

Zero-sum game. One person's gain is the other person's loss. Directly conflicting interests

BATNA

Best Alternative to a Negotiated Agreement. your source of power. Always try to improve your BATNA before negotiate.

Reservation Price

Your bottom line. The point at which you are better off walking away from the negotiation than agreeing.




RP=BATNA +-transaction costs to enact BATNA

Goals/Aspirations

Your target point. Give yourself credit, make it high but reachable.

Bargaining Zone

Space between the buyer's Reservation Price and the seller's reservation Price aka zone of possible agreement. If BR


----BRP_______________SRP-----


^


Negative Bargaining Zone

First Offer

the only time you should think twice about NOT making the first offer is if you do not have any information about the other persons RP or BATNA AND you care about the relationship. All other situations you should make the first offer to anchor the agreement.

Final Offer/Ultimatium

if you are making a final offer be sure you can actually commit to walking away if they do not accept. Think about the effect on future negotiations

ratification

giving up power to get power. "I don't have the authority to make that decision but let me check with my boss"

hardball tactics

In general, not a good idea to use, especially if it is a ongoing relationship.


Types of tactics:


good cop/bad cop


highball/lowball (outrageous offers)


bogey (pretending an issue is important when its not)


nibble (asking for a little more at the end of the negotiation)


snow job (inundating the other person with information)



Integrative Issues

expand the pie for mutual gain. The things most important to you are least important to them and vice versa.

Integrative Negotiations

involve multiple issues


opportunity to enlarge the pie


capitalize on differences in parties preferences


always involve distributive component/

Pareto Efficient Frontier

When their is no other agreement that could have been made that would make any party any better off w/o decreasing the outcomes of the other party.

Scoring Systems

way to give quantitative value to qualitative issues so you can properly compare opportunities. Allows you to determine overall reservation price.

Interests vs. Positions

think pumpkin story in Morrocco.


Position= something you've decided on


interest=what led you to make that decision.


Look behind position to find motivating interest that way you can possible come up with a solution that solves both interests.


Focus on INTERESTS not POSITIONS

Package Deals

Better than issue v issue - (which become a series of distributive negotiations). Package deals allow you to better understand interest/positions. Present them with three packages and see which is least repulsive, then you have a better idea of their most importnat ssues.

Multiple Equivalent Simultaneous Offers (MESO)

make multiple offers that are mutually equivalent in your mind - to get a better idea of your partners interests. Allows you to anchor & reanchor the conversation, show flexibility while still being agressive; but cna cause you to reveal informatin

Adding issues

help you to overcome a negative bargaining zone;create opps for additional concessions & trade offs;

Contingency Contracts

Allow negotiatiors to spread risk through risk-sharing (think adding Juniors to Hollyville negotiation)

features of successful contingency contracts

require continued interaction b/w parties; require enforceability; require clairty and measurability

Advantages to using agents

may have special knowledge/expertise; unbiased by emotion; maintain confidentiality; adds tacit flexibility

Disadvantages to using agents

misalignment of interests with client


may care less about long-term relationship or client's reputation


costs $$


increased chance of info distortion b/c of increased channels of communication

A statement is fraudulent WHEN

the speakers makes a KNOWING misrepresentation of a material fact by which the victim reasonably relies and could cause damage

You can lie aboue ___ but not ___

reservation price but not BATNA

Key Principles in multi-party negotiations

forming & blocking coalitions; procedural tactics; psychological tactics

Coalitions

two or more parties who agree to cooperate to achieve mutually desirable goals ; mixed motive situation - you want to cooperate but there is incentive to compete