Negotiation Fundamentals & Strategies Flashcards

In principled negotiation, which of the following is NOT one of the four core elements?

Answer: Always make the first offer to set the anchor

Fisher and Ury's principled negotiation framework consists of separating people from the problem, focusing on interests, generating options for mutual gain, and using objective criteria — not anchoring strategy.

What does the term 'reciprocity norm' mean in the context of negotiation?

Answer: Negotiators feel socially obligated to return concessions made by the other party

The reciprocity norm is the social obligation to respond to a concession with a concession, which negotiators can leverage strategically.

Which tactic involves a negotiator claiming they need approval from a higher authority before agreeing to a deal?

Answer: Limited authority tactic

The limited authority tactic delays commitment and can extract additional concessions by claiming the negotiator must defer to a principal not present at the table.

What is 'bracketing' as a negotiation strategy?

Answer: Setting a range within which you expect the final deal to fall by making an extreme offer

Bracketing means making an offer designed so that if the parties split the difference, the result lands at your target outcome.

In multi-issue negotiations, presenting multiple issues simultaneously rather than sequentially is advantageous because:

Answer: It allows package trades and reveals differing priorities between the parties

Negotiating issues in packages allows parties to make trade-offs across issues, revealing priority differences that enable value-creating deals.

Which of the following describes 'post-settlement settlement' (PSS)?

Answer: After reaching an agreement, jointly searching for a better deal for both parties

PSS is a process where parties who have already agreed to a deal attempt to jointly improve on it, using the original agreement as a fallback, often uncovering Pareto-superior outcomes.

Which cognitive bias leads negotiators to irrationally continue investing in a failing negotiation because of prior time or resources spent?

Answer: Sunk cost fallacy

The sunk cost fallacy causes negotiators to persist in unproductive talks because they focus on unrecoverable past investments rather than future value.