CH.3

Question 1

How to recognize an integrative situation? (4)

Answer 1

The negotiation includes more than one issue
It is possible to add more issues to the mix
The negotiation is likely to recur over time
The parties have varying preferences across the issues

Question 2

The key steps in the integrative negotiation process

Answer 2

claiming value
creating value
pareto efficiency
Negotiator’s dilemma

Question 3

Explain creating value

Answer 3

When parties with conflicting yet compatible interests trade low-priority issues for higher-priority issues

Question 4

Explain the Pareto Efficiency

Answer 4

Find the point where there is “no agreement that would make any party better off without decreasing the outcomes to any other party
No change can be made without making someone worse off.

Question 5

Based on the Pareto Efficient frontier, Deal A falls on the ________ _____ _____ and is _____ divided between the buyer and the seller.
Deals B and C also fall on the Pareto efficient frontier, but they are not ____ ______ deal as A

Answer 5

the Pareto Efficient frontier, equally

as good of a deal as A

Question 6

Explain the Negotiator’s Dilemma

Answer 6

Tension between engaging in competitive and cooperative behaviour in a negotiation. “No matter how much creative problem solving enlarges the pie, it must still be divided; value that has been created must be claimed.”

Question 7

Substantive interests

Answer 7

relate to key issues in the negotiation

Question 8

Process interests

Answer 8

related to the way a dispute is settled

Question 9

Relationship interests

Answer 9

indicate that one or both parties value their relationship

Question 10

Interests in principle

Answer 10

principles deeply held by the parties serving as the dominant guide to their actions (doing what is fair, right, acceptable, ethical, etc.)

Question 11

True or false: There is almost always more than one type of interest underlying a negotiation

Answer 11

True

Question 12

True or false: Parties cannot have different types of interests at stake

Answer 12

False:
Parties can have different types of interests at stake

Question 13

True or false: Focusing on interests can be harmful

Answer 13

True

Question 14

True or false: Surfacing interests is not always easy or to your best advantage

Answer 14

True

Question 15

What are interests

Answer 15

Interests are the underlying concerns, needs, desires, or fears that motivate a negotiator to take a particular position

Question 16

What are some alternative solutions in integrative negotiation(5)

Answer 16

Expand the pie
Logroll
Use non-specific compensation
Cut the costs for compliance
Find a bridge solution

Question 17

What are some types of interests

Answer 17

substantive interests
process interests
relationship interests

Question 18

Explain substantive interests

Answer 18

economic and financial issues, such as price or rate; or the substance of a negotiation, such as the division of resources

Question 19

Process interests

Answer 19

related to the way a dispute is settled. One party may pursue distributive bargaining because he enjoys competition. Another may enjoy negotiating because she believes she has not been consulted in the past and wants to have some say.

Process interests can also be both intrinsic and instrumental.

Question 20

Relationship interests

Answer 20

indicate that one or both parties value their relationship with each other and do no want to take actions that will damage it.

Question 21

Explain expand the pie

Answer 21

A simple solution is to add resources ( expand the pie) in such a way that both sides can achieve their objectives. The approach assumes that simply enlarging the resources will solve the problem.
However, expanding the pie would not be a satisfactory solution is their disagreement was based on other grounds.

Question 22

Logroll

Answer 22

What are higher priorities to me and the other negotiations. By unbundling, I can get something of high value that doesn’t cost as much

They find more than one issue in conflict and to have different priorities for those issues. Then, they agree to trade off among these issues so that one party achieves a highly preferred outcome on that first issue and the other person achieves a highly preferred outcome on the second issue.

Question 23

Use non-specific compensation

Answer 23

Ex: Employer and management. Employer give service recognition letters to employees.

Allow one person to obtain his objectives and pay off the other person for accommodating his interests.

Question 24

Cut the costs for compliance

Answer 24

Through cost cutting, one party achieves their objectives and the other’s costs are minimized if they agree to go along.

Minimize the other party’s costs for reaching a negotiated agreement. Need to know what the other party wants.

Question 25

Find a bridge solution

Answer 25

Invent a new option that meet all their respective needs. Let’s invent a solution

Question 26

What are some strategies that facilitate successful integrative negotiation

Answer 26

- create a common objective or goal - share underlying interests, priorities and preferences, interpretation of key facts - build trust - make multiple offers simultaneously - constructing multiple equivalent simultaneous offers

Question 27

Explain "Make multiple offers simultaneously"

Answer 27

Provide options that are similar in value to you, but which demonstrate flexibility and perceived sincerity By studying the counteroffer and comparing it with your original offer, you are more likely to be able to discern which issues are weighted higher/lower by each of you You can also ask which of your offers is closest/farthest to matching their preferences in order to acquire information

Question 28

Explain "constructing multiple equivalent simultaneous offers (MESOs)

Answer 28

1. Make a comprehensive list of all issues to be negotiated 2. Prioritize issues; assign a value to each option within each issue 3. Create 2-3 packages with varying terms that collectively are of equal value to you 4. When you present MESOs, let your counterpart know: a) you are going to make multiple offers b) each offer is of equal value to you c) you will give them time to consider the packages

Question 29

What is the difference between a common goal, a shared goal, and a joint goal

Answer 29

A common goal is one that all parties share equally, each one benefiting in a way that would not be possible if they did not work together. A shared goal is one that both parties work toward but that benefits each party differently. A joint goal is one that involves individuals with different personal goals agreeing to combine them in a collective effort.