Negotiation Theory & Strategies Flashcards
7 cards from real CNE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Negotiation Theory & Strategies flashcards as text
What is the key distinction between 'positions' and 'interests' in negotiation theory?
Answer: Positions are what parties say they want; interests are the underlying needs driving those demands
Understanding interests beneath stated positions opens the door to creative solutions that satisfy both parties' core needs.
Which phenomenon occurs when negotiators become so committed to a course of action that they continue investing resources even when it is no longer rational?
Answer: Escalation of commitment
Escalation of commitment (sunk cost trap) causes negotiators to justify past investments rather than rationally evaluating future returns.
In a salary negotiation, an applicant asks for $95,000 knowing the employer's budget is $85,000. The applicant's $95,000 ask is best described as their:
Answer: Anchor point
The opening offer ($95,000) functions as an anchor that sets the reference point and pulls the final outcome upward.
Which of the following best illustrates an 'expanding the pie' integrative strategy?
Answer: Trading a faster closing date for a lower purchase price when one party values speed more
Expanding the pie means identifying issues where parties have different priorities and trading them to create value beyond a simple price split.
According to prospect theory, how do negotiators typically respond to a proposal framed as avoiding a loss versus achieving an equivalent gain?
Answer: They are more motivated to avoid the loss than to achieve the equivalent gain
Prospect theory shows that losses loom psychologically larger than equivalent gains, making loss-framed proposals more motivating.
A negotiator who uses 'standards and norms' as leverage is applying which principled negotiation concept?
Answer: Insisting on objective criteria
Insisting on objective criteria means anchoring proposals in industry standards, precedents, or expert data that both parties accept as legitimate.
What is the strategic value of making a 'package offer' rather than negotiating issues one at a time?
Answer: It allows trade-offs across issues, revealing priorities and enabling integrative agreements
Package offers surface how each party values different issues, creating opportunities for logrolling and value-creating trade-offs.