MGMT 485 EXAM 1 QUESTIONS AND ANSWERS
Prisoner's Dilemma - CORRECT ANSWER✅✅- When two parties, acting in their own self-interest, chose
to defect rather than cooperate
- Mutual cooperation provides a better result; urge to make yourself better off
Collective Action Problem - CORRECT ANSWER✅✅- When individual self-interest conflicts with the best
interests of a group
- Lead to suboptimal outcome despite potential for mutual benefit through cooperation
Cooperation - CORRECT ANSWER✅✅- Win-win approach, focused on collaborative problem-solving to
maximize mutual benefits rather than dividing resources
- Involves: building trust, active listening
Competition - CORRECT ANSWER✅✅- Win-lose bargaining, strategy aimed to maximizing individual
gain at the expense of the other party
- Tactics: high demands, withholding information, pressure
Principled Negotiation Guidelines - CORRECT ANSWER✅✅People - separate people from problems,
Interests - focus on interests and not positions, Options - generate options for mutual benefit, Criteria -
use objective criteria
Positions - wants (desires & aspirations to attain or process)
Interests - needs (requirements essential to survive or function optimally)
BATNA - CORRECT ANSWER✅✅- Best Alternative to a Negotiated Agreement
- Goal: do better than your BATNA
- Power: comes from the quality of your options
Reservation Price - CORRECT ANSWER✅✅- Walk-away point
- Lowest acceptable outcome you're willing to accept in a negotiation
- Based on BATNAs but somewhat objective (risk tolerance or idiosyncratic preferences)
Prisoner's Dilemma - CORRECT ANSWER✅✅- When two parties, acting in their own self-interest, chose
to defect rather than cooperate
- Mutual cooperation provides a better result; urge to make yourself better off
Collective Action Problem - CORRECT ANSWER✅✅- When individual self-interest conflicts with the best
interests of a group
- Lead to suboptimal outcome despite potential for mutual benefit through cooperation
Cooperation - CORRECT ANSWER✅✅- Win-win approach, focused on collaborative problem-solving to
maximize mutual benefits rather than dividing resources
- Involves: building trust, active listening
Competition - CORRECT ANSWER✅✅- Win-lose bargaining, strategy aimed to maximizing individual
gain at the expense of the other party
- Tactics: high demands, withholding information, pressure
Principled Negotiation Guidelines - CORRECT ANSWER✅✅People - separate people from problems,
Interests - focus on interests and not positions, Options - generate options for mutual benefit, Criteria -
use objective criteria
Positions - wants (desires & aspirations to attain or process)
Interests - needs (requirements essential to survive or function optimally)
BATNA - CORRECT ANSWER✅✅- Best Alternative to a Negotiated Agreement
- Goal: do better than your BATNA
- Power: comes from the quality of your options
Reservation Price - CORRECT ANSWER✅✅- Walk-away point
- Lowest acceptable outcome you're willing to accept in a negotiation
- Based on BATNAs but somewhat objective (risk tolerance or idiosyncratic preferences)
