Chapter 10 Making Rational Decisions in Negotiations

Chapter 10 Making Rational Decisions in Negotiations Chapter 10 Making Rational Decisions in Negotiations Multiple Choice 1. Game theory provides the most precise prescriptive advice to negotiators, on the condition that: a. They do not lie. b. All players are perfectly rational. c. They focus on interests, and not on arguments. d. They aware of their BATNAs. Ans: b Response: p. 176 2. Which of the following is not a key set of information in Raiffa’s framework for approaching negotiations? a. Each party’s BATNA. b. The relative importance of each party’s interests. c. Each party’s known information about the other party’s position. d. Each party’s set of interests. Ans: c Response: p. 177 3. Trust enables value creation through: a. Creating contingent contracts. b. Identifying the parties’ interests. c. Facilitating tradeoffs between issues of different relative importance. d. Sharing information between the parties. Ans: d Response: p. 186 4. Contingent contracts can create value in the presence of what feature: a. uncertain future outcomes. b. a negative bargaining zone. c. differences in the parties’ time preferences. d. differences in the parties’ risk preferences. Ans: a Response: p. 184 5. Negotiators often are reluctant to give away information because they assume that: a. Their information is too important. b. It will anchor their final outcome. c. Giving away information is giving away power. d. If the other side does not ask questions, then their willingness to share information is equally low. Ans: c Response: 187 True/False 6. Knowing one’s own reservation price is sufficient for making the decision of whether to accept or reject the final offer from the other party. Ans: True Response: p. 177