CPN Distributive vs Integrative Bargaining 2 — Questions and Answers
Question 1: In distributive bargaining, what is the primary role of the 'anchor' in setting the negotiation range?
- It establishes a psychological reference point that influences final settlement (Correct answer)
- It signals the negotiator's BATNA to the other party
- It creates a zone of possible agreement automatically
- It forces the other party to reveal their reservation price
Correct answer: It establishes a psychological reference point that influences final settlement
Anchoring establishes a psychological reference point that pulls the final settlement toward the first offer made.
Question 2: Which scenario best illustrates a 'fixed-pie assumption' error in integrative negotiation?
- Assuming a salary increase must come at the expense of benefits without exploring total compensation options (Correct answer)
- Offering to split the difference on a disputed price
- Using objective criteria to resolve a pricing dispute
- Asking the other party to reveal their interests first
Correct answer: Assuming a salary increase must come at the expense of benefits without exploring total compensation options
Assuming a salary increase must reduce benefits reflects the fixed-pie error of not exploring how compensation packages can be restructured for mutual gain.
Question 3: What distinguishes a 'contingent contract' as an integrative tool?
- It eliminates all risk for both parties simultaneously
- It allows parties with different forecasts to bet on future outcomes, creating joint value (Correct answer)
- It locks in a fixed price regardless of market changes
- It requires a neutral third party to enforce terms
Correct answer: It allows parties with different forecasts to bet on future outcomes, creating joint value
Contingent contracts leverage differing beliefs about the future so both parties can gain if their respective predictions prove correct.
Question 4: In distributive bargaining, the 'target point' refers to:
- The minimum acceptable outcome before a negotiator walks away
- The ideal outcome a negotiator realistically hopes to achieve (Correct answer)
- The midpoint between both parties' opening offers
- The point at which the zone of possible agreement closes
Correct answer: The ideal outcome a negotiator realistically hopes to achieve
The target point is the realistic goal a negotiator aims to reach, distinct from the more aspirational opening position.
Question 5: Which communication strategy is MOST aligned with integrative bargaining?
- Withholding information about your interests to gain positional leverage
- Asking open-ended questions to uncover the other party's underlying needs (Correct answer)
- Making take-it-or-leave-it offers to signal commitment
- Limiting concessions to signal toughness
Correct answer: Asking open-ended questions to uncover the other party's underlying needs
Open-ended questions reveal underlying interests, which is the foundation of creating mutually beneficial integrative agreements.
Question 6: A negotiator using the 'good cop/bad cop' tactic is employing a strategy most characteristic of:
- Integrative bargaining
- Principled negotiation
- Distributive bargaining (Correct answer)
- Interest-based negotiation
Correct answer: Distributive bargaining
Good cop/bad cop is a classic distributive tactic designed to pressure concessions by manipulating the other party's perception of options.
Question 7: When parties engage in 'logrolling,' they are:
- Distributing the total value equally between both sides
- Trading concessions on issues each party values differently to improve joint outcomes (Correct answer)
- Using competitive tactics to claim a larger share of a fixed resource
- Delegating authority to a mediator to split the difference
Correct answer: Trading concessions on issues each party values differently to improve joint outcomes
Logrolling involves exchanging concessions on issues where each party has different priorities, a core integrative technique for expanding joint value.
CPN Distributive vs Integrative Bargaining 2
In distributive bargaining, what is the primary role of the 'anchor' in setting the negotiation range?