Negotiation Fundamentals & Strategies Flashcards

What is 'reactive devaluation' in negotiation?

Answer: Undervaluing concessions offered by the opposing party simply because they offered them

Reactive devaluation is the tendency to view a proposal as less attractive or concede its value once you know it originated from your adversary.

In the context of negotiation ethics, which of the following is generally considered an acceptable persuasion tactic?

Answer: Strategically framing information to highlight favorable aspects

Strategic framing — emphasizing genuine advantages of a proposal — is an accepted influence technique, unlike outright deception about facts.

A negotiator uses 'objective criteria' in negotiation primarily to:

Answer: Shift focus from willpower contests to legitimacy-based reasoning

Objective criteria (market value, precedent, expert opinion) depersonalize the negotiation and shift arguments from who is tougher to what is fair and legitimate.

What does the 'final offer arbitration' (FOA) mechanism incentivize parties to do?

Answer: Submit reasonable, realistic positions because the arbitrator must choose one side's offer entirely

In FOA (also called baseball arbitration), the arbitrator must select one party's final offer without modification, incentivizing both sides to present credible, moderate proposals.

Which term describes the minimum outcome a negotiator is willing to accept before walking away?

Answer: Reservation price

The reservation price is the negotiator's walk-away threshold — the least favorable deal they will accept — distinct from BATNA, which is the alternative if no deal is reached.

When a negotiator deliberately reveals a strong BATNA, the primary strategic goal is to:

Answer: Increase their own perceived power and reduce concession pressure

Revealing a credible BATNA signals that the negotiator has a viable alternative, which strengthens their bargaining power and reduces their need to make concessions.

What is the 'nibbling' tactic in negotiation?

Answer: Requesting additional small concessions after the main deal has been agreed upon

Nibbling involves asking for minor add-ons or extras after the deal is essentially closed, exploiting the other party's desire to finalize the agreement.