CPN Negotiation Psychology & Cognitive Biases 2

Question 1

The 'fixed-pie assumption' is a cognitive bias that causes negotiators to incorrectly assume:

Accepted Answer

Resources and value in a negotiation are strictly limited and cannot be expanded

Answer

Both parties have identical reservation prices

Answer

The first party to make an offer will always secure the larger share of value

Answer

A deal must be finalized within a predetermined number of sessions

Question 2

The availability heuristic affects negotiators most when they:

Accepted Answer

Make probability judgments based on how easily examples come to mind rather than actual data

Answer

Use only publicly available market data to set their opening position

Answer

Evaluate counterpart proposals based on their available authority to decide

Answer

Prioritize issues that are available for discussion early in the agenda

Question 3

Status quo bias in negotiation is best described as:

Accepted Answer

A preference for maintaining the current state of affairs, even when a change would be beneficial

Answer

The tendency to treat all parties equally regardless of their bargaining power

Answer

A bias toward accepting the counterpart's initial offer to preserve the relationship

Answer

The tendency to anchor future negotiations to past agreements

Question 4

In negotiation psychology, the principle of reciprocity is most accurately described as:

Accepted Answer

The social norm that causes people to feel obligated to return favors or concessions

Answer

The legal obligation to match any concession made by the other party dollar for dollar

Answer

A tactic where negotiators explicitly promise future concessions in exchange for current ones

Answer

The tendency to reciprocate aggressive tactics with equally aggressive counter-moves

Question 5

The endowment effect in negotiation describes why sellers typically:

Accepted Answer

Demand more for items they own than they would pay for identical items they do not own

Answer

Undervalue their own assets relative to market price when under time pressure

Answer

Overestimate the value of the other party's concessions

Answer

Endow their opening offers with excessive justification to appear credible

Question 6

How does the contrast effect influence a negotiator's perception of a counteroffer?

Accepted Answer

A moderate offer appears more attractive when presented immediately after an extreme offer

Answer

Negotiators perceive offers from familiar counterparts as more reasonable due to familiarity contrast

Answer

Written offers are perceived as more credible than verbal ones due to format contrast

Answer

A concession appears larger when offered in stages rather than all at once

Question 7

Which psychological phenomenon explains why people are more likely to comply with a large request after first agreeing to a small one?

Accepted Answer

The foot-in-the-door technique

Answer

The door-in-the-face technique

Answer

Reactive devaluation

Answer

Commitment escalation