Concession Strategies & Tactics Flashcards

In negotiation, 'anchoring' refers to which of the following concepts?

Answer: Setting an initial position that influences the perceived range of the entire negotiation

Anchoring establishes a reference point with your first offer that shapes both parties' perceptions of what constitutes a reasonable outcome throughout the negotiation.

Why is it important to attach conditions or justifications when making a concession?

Answer: To prevent the other party from expecting future concessions at the same pace

Justified concessions signal that each movement was earned rather than arbitrary, managing the other party's expectations about the pace and size of future concessions.

What is the primary risk of making large, rapid concessions early in a negotiation?

Answer: It raises the other party's aspiration level and expectation for further concessions

Large early concessions signal that your opening position was inflated, raising the other party's expectations and encouraging them to demand further movement.

In a multi-issue negotiation, trading concessions across different issues based on each party's differing priorities is called:

Answer: Logrolling

Logrolling involves trading concessions on different issues based on each party's priorities, expanding the overall value of the deal for both sides.

What does the 'bracketing' concession strategy involve?

Answer: Making an offer calculated so the midpoint between positions lands at your target

Bracketing involves making an offer calculated so that the expected midpoint between your offer and the other party's counter lands precisely at your target outcome.

Which concession approach is most effective when you want to credibly signal that you have reached your final position?

Answer: A diminishing concession paired with a clear verbal statement of limits

A diminishing concession combined with a verbal signal (e.g., 'this is truly all I can offer') communicates that you are at or very near your reservation price.

What does the 'splitting the difference' technique mean in concession-making?

Answer: Both parties conceding to meet exactly halfway between their stated positions

Splitting the difference is a simple compromise technique where both parties agree to settle at the midpoint of their last stated positions.