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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 |
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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. |
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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. |
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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. |
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Distributive Negotiations |
Zero-sum game. One person's gain is the other person's loss. Directly conflicting interests |
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BATNA |
Best Alternative to a Negotiated Agreement. your source of power. Always try to improve your BATNA before negotiate. |
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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 |
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Goals/Aspirations |
Your target point. Give yourself credit, make it high but reachable. |
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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 |
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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. |
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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 |
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ratification |
giving up power to get power. "I don't have the authority to make that decision but let me check with my boss" |
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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) |
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Integrative Issues |
expand the pie for mutual gain. The things most important to you are least important to them and vice versa. |
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Integrative Negotiations |
involve multiple issues opportunity to enlarge the pie capitalize on differences in parties preferences always involve distributive component/ |
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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. |
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Scoring Systems |
way to give quantitative value to qualitative issues so you can properly compare opportunities. Allows you to determine overall reservation price. |
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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 |
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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. |
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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 |
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Adding issues |
help you to overcome a negative bargaining zone;create opps for additional concessions & trade offs; |
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Contingency Contracts |
Allow negotiatiors to spread risk through risk-sharing (think adding Juniors to Hollyville negotiation) |
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features of successful contingency contracts |
require continued interaction b/w parties; require enforceability; require clairty and measurability |
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Advantages to using agents |
may have special knowledge/expertise; unbiased by emotion; maintain confidentiality; adds tacit flexibility |
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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 |
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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 |
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You can lie aboue ___ but not ___ |
reservation price but not BATNA |
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Key Principles in multi-party negotiations |
forming & blocking coalitions; procedural tactics; psychological tactics |
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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 |