CNE Negotiation Theory & Strategies 3 — Questions and Answers
Question 1: Which negotiation strategy is most appropriate when the relationship is long-term and issues are complex with multiple trade-off opportunities?
- Hardball bargaining
- Integrative negotiation (Correct answer)
- Ultimatum strategy
- Single-issue positional bargaining
Correct answer: Integrative negotiation
Integrative negotiation is designed to create value by exploring multiple issues and trade-offs, benefiting long-term relationships.
Question 2: What is a 'contingent contract' in negotiation theory?
- An agreement that takes effect only after regulatory approval
- A deal that resolves differing forecasts by tying terms to future outcomes (Correct answer)
- A contract requiring ongoing renegotiation
- A non-binding letter of intent
Correct answer: A deal that resolves differing forecasts by tying terms to future outcomes
Contingent contracts let parties bet on their different predictions, with payoffs tied to which forecast proves correct.
Question 3: Which cognitive bias causes negotiators to interpret ambiguous information in a way that confirms their existing beliefs about the counterpart?
- Framing effect
- Confirmation bias (Correct answer)
- Anchoring bias
- Overconfidence bias
Correct answer: Confirmation bias
Confirmation bias leads negotiators to seek and favor information that supports their pre-existing assumptions.
Question 4: In multi-party negotiations, a 'coalition of the willing' strategy involves:
- Getting all parties to agree before moving forward
- Building a subset of aligned parties to advance a proposal and pressure holdouts (Correct answer)
- Mediating between two opposing blocs
- Delegating decision-making to a neutral chair
Correct answer: Building a subset of aligned parties to advance a proposal and pressure holdouts
Forming a coalition with aligned parties creates momentum and social pressure that can bring reluctant parties on board.
Question 5: The 'reciprocity norm' in negotiation suggests that:
- Equal concessions must be made on every issue
- Parties feel psychologically obligated to return concessions received (Correct answer)
- Negotiations should end with equal outcomes for both sides
- Counteroffers must mirror the opening position proportionally
Correct answer: Parties feel psychologically obligated to return concessions received
The reciprocity norm creates social pressure to match concessions, making it a powerful tool for encouraging movement from the other side.
Question 6: What does 'post-settlement settlement' refer to in advanced negotiation practice?
- Renegotiating an agreement after a dispute arises
- Seeking a better deal after an initial agreement to improve joint outcomes without reopening conflict (Correct answer)
- Filing a claim after a contract is signed
- A mediation process following failed negotiations
Correct answer: Seeking a better deal after an initial agreement to improve joint outcomes without reopening conflict
Post-settlement settlement involves both parties agreeing to explore improvements to a deal they've already accepted, using the current deal as a floor.
Question 7: Which of the following best describes the 'fixed-pie' assumption in negotiation?
- Believing that all agreements must be legally binding
- The erroneous belief that what one party gains, the other must lose (Correct answer)
- Assuming time pressure affects both parties equally
- The view that price is the only negotiable issue
Correct answer: The erroneous belief that what one party gains, the other must lose
The fixed-pie assumption is a cognitive error that prevents negotiators from discovering value-creating trade-offs across multiple issues.
CNE Negotiation Theory & Strategies 3
Which negotiation strategy is most appropriate when the relationship is long-term and issues are complex with multiple trade-off opportunities?