Distributive vs Integrative Bargaining Flashcards

What is the primary risk of making very large opening offers in distributive bargaining?

Answer: It can damage credibility and cause the other party to disengage

Extreme anchors can appear unreasonable and cause the other party to walk away rather than negotiate, undermining the strategy's effectiveness.

Which integrative tactic involves adding entirely new issues to the negotiation to create additional trading opportunities?

Answer: Expanding the pie

Expanding the pie means introducing new resources, issues, or trade dimensions so more total value is available for both parties.

A negotiator offers a solution that abandons both parties' original positions in favor of a new option that satisfies both parties' core interests. This is called:

Answer: Bridging

Bridging creates a new alternative that neither party originally proposed but that meets each side's underlying interests.

In a two-party distributive negotiation, if both parties' resistance points do not overlap, what exists?

Answer: A negative ZOPA, meaning no mutually acceptable deal is possible without adjusting limits

A negative ZOPA means the seller's lowest acceptable price exceeds the buyer's highest acceptable price, making agreement impossible without changing limits.

Which of the following best illustrates 'cost cutting' as an integrative technique?

Answer: Reducing the costs the other party incurs by accepting your preferred outcome

Cost cutting involves finding ways to reduce the conceding party's costs of agreeing to your preferred outcome, making it easier for them to accept.

Which statement about relationship quality is MOST accurate in choosing between distributive and integrative approaches?

Answer: Integrative bargaining is generally preferred when ongoing relationships matter more than short-term gains

Integrative bargaining preserves and strengthens relationships because it satisfies both parties' interests rather than leaving one feeling exploited.

The concept of 'compatible issues' in integrative negotiation refers to:

Answer: Issues where both parties want the same outcome, creating easy agreement

Compatible issues are those where both parties actually prefer the same outcome, so agreement requires no concession from either side.