CPN Distributive vs Integrative Bargaining 3 — Questions and Answers
Question 1: Which of the following best describes the 'negotiator's dilemma'?
- Choosing between creating value through cooperation and claiming value through competition (Correct answer)
- Deciding whether to accept or reject a final offer
- Determining whether to use a mediator or arbitrator
- Selecting between integrative and distributive outcome metrics
Correct answer: Choosing between creating value through cooperation and claiming value through competition
The negotiator's dilemma is the tension between cooperative moves needed to create value and competitive moves needed to claim a larger share of that value.
Question 2: In integrative negotiation, 'post-settlement settlements' are used to:
- Void the original agreement if market conditions change
- Improve on an already-reached agreement by continuing to explore joint gains (Correct answer)
- Redistribute value after a distributive deal closes
- Allow parties to renegotiate anchor points
Correct answer: Improve on an already-reached agreement by continuing to explore joint gains
Post-settlement settlements invite parties to search for Pareto improvements after an initial deal, often revealing overlooked integrative potential.
Question 3: Which factor most commonly causes integrative negotiations to default back to distributive tactics?
- Too many agenda items on the table
- Lack of trust and fear that sharing interests will be exploited (Correct answer)
- Presence of a neutral mediator
- High BATNA strength on both sides
Correct answer: Lack of trust and fear that sharing interests will be exploited
When parties distrust each other, they withhold information about interests, preventing the interest discovery needed for integrative outcomes.
Question 4: A buyer and seller negotiate over a piece of equipment. The buyer values delivery speed highly; the seller has excess warehouse capacity. Agreeing on fast delivery at no extra cost is an example of:
- Distributive compromise
- Integrative value creation by exploiting differing priorities (Correct answer)
- Competitive anchoring
- ZOPA expansion through position trading
Correct answer: Integrative value creation by exploiting differing priorities
Fast delivery costs the seller little but is highly valued by the buyer, illustrating integrative value creation from asymmetric priorities.
Question 5: Which of the following is a sign that a negotiation has reached a 'Pareto-efficient' outcome?
- Both parties feel they won equal shares of the available value
- No further changes can improve one party's outcome without worsening the other's (Correct answer)
- The zone of possible agreement has been fully mapped
- A neutral third party has certified the fairness of the deal
Correct answer: No further changes can improve one party's outcome without worsening the other's
A Pareto-efficient outcome is one where no reallocation can make one party better off without making the other worse off.
Question 6: In distributive bargaining, a 'bogey' tactic involves:
- Feigning that a low-priority issue is critically important to gain concessions on it later (Correct answer)
- Revealing your BATNA to strengthen your position
- Making a final extreme demand to anchor the negotiation range
- Using silence to pressure the other party into conceding
Correct answer: Feigning that a low-priority issue is critically important to gain concessions on it later
A bogey involves pretending that an unimportant issue is a major priority so you can later 'concede' it in exchange for real gains.
Question 7: Which approach to negotiation does Roger Fisher and William Ury's 'Getting to Yes' primarily advocate?
- Positional bargaining focused on opening offers
- Principled/integrative negotiation based on interests, not positions (Correct answer)
- Distributive hardball tactics backed by strong BATNAs
- Competitive anchoring followed by incremental concessions
Correct answer: Principled/integrative negotiation based on interests, not positions
'Getting to Yes' advocates principled negotiation: separating people from problems, focusing on interests, and using objective criteria.
CPN Distributive vs Integrative Bargaining 3
Which of the following best describes the 'negotiator's dilemma'?