Exam 1

Question 1

What is the most critical factor in becoming a good negotiator?

Answer 1

Motivation to improve and conscious effort.

Question 2

What does the I–C–E rule stand for in developing negotiation skills?

Answer 2

Immediate feedback, Clarity, and Empirically tested best practices.

Question 3

What is the key difference between Pattern X and Pattern Y preparation?

Answer 3

Pattern X includes ineffective activities like rehearsing demands, while Pattern Y focuses on issue prioritization and brainstorming alternatives.

Question 4

Which preparation strategy is most effective for negotiation?

Answer 4

Identifying all issues, ranking them by importance, and brainstorming alternatives.

Question 5

What myth does Truth 3 debunk?

Answer 5

That every industry has completely different negotiation strategies.

Question 6

How does the math analogy help explain negotiation across industries?

Answer 6

The fundamental principles of negotiation apply universally, just like math rules.

Question 7

What is a win-win negotiation?

Answer 7

When both parties reach an agreement that cannot be improved further.

Question 8

Why did the Orange Sisters example result in a lose-lose situation?

Answer 8

They prioritized competition over cooperation and failed to communicate their true interests.

Question 9

What is NOT one of the four negotiation sand traps?

Answer 9

Making an aggressive first offer.

Question 10

What is the winner’s curse?

Answer 10

Accepting an offer too quickly without realizing it was too generous.

Question 11

What is the most important first step when preparing for a negotiation on short notice?

Answer 11

Identifying your real goals and interests.

Question 12

Why should you avoid making take-it-or-leave-it demands?

Answer 12

It increases the chance of deadlock and prevents collaboration.

Question 13

Why is knowing your BATNA essential in a negotiation?

Answer 13

It allows you to walk away from a bad deal with confidence.

Question 14

What is the most effective way to improve your BATNA?

Answer 14

Develop and strengthen multiple backup plans before negotiating.

Question 15

What is a reservation price in a negotiation?

Answer 15

The maximum price you’re willing to pay or the minimum you’re willing to accept.

Question 16

Why is it important to set a reservation price before negotiations?

Answer 16

It prevents you from accepting a deal worse than your BATNA.

Question 17

What happens if you stop nurturing your BATNA?

Answer 17

It becomes weaker, reducing your negotiating power.

Question 18

What is the best way to improve your BATNA?

Answer 18

Explore all possibilities and strengthen alternatives before negotiating.

Question 19

When should you reveal your BATNA?

Answer 19

Only when negotiations are at a standstill or when you have a fantastic BATNA that would be beneficial to disclose.

Question 20

Why should you avoid lying about your BATNA?

Answer 20

It is unethical, can damage credibility, and may backfire if discovered.

Question 21

What are the risks of bluffing about your BATNA?

Answer 21

If called out, you may lose trust, damage relationships, or face legal consequences.

Question 22

How can you signal your BATNA without revealing it?

Answer 22

Use strategic hints, such as mentioning alternative opportunities without giving specifics.

Question 23

What is agreement bias?

Answer 23

The tendency to accept a bad deal just to reach an agreement.

Question 24

How can you prevent agreement bias?

Answer 24

Set a clear reservation price and stick to it.

Question 25

What is anchoring in negotiation?

Answer 25

Setting an initial offer or reference point that influences the final agreement.

Question 26

Why is it beneficial to make the first offer?

Answer 26

It establishes a psychological anchor that can shape the negotiation in your favor.

Question 27

Why should you label your concessions?

Answer 27

To ensure the other party recognizes them as sacrifices and values them.

Question 28

What is a contingent concession?

Answer 28

A concession given in exchange for a specific action from the other party.

Question 29

What does Pareto efficiency mean in negotiation?

Answer 29

An agreement where no further improvements can be made without making one party worse off.

Question 30

How can negotiators reach the Pareto Optimal Frontier?

Answer 30

By making multiple offers simultaneously and looking for post-settlement improvements.

Question 31

What is the dilemma of honesty in negotiation?

Answer 31

Deciding how much information to disclose without being exploited.

Question 32

What is the dilemma of trust?

Answer 32

Determining how much of the other party’s statements you should believe.

Question 33

What are the three major approaches to dispute resolution?

Answer 33

Interests, Rights, and Power (I-R-P Model).

Question 34

What is an interest-based negotiation strategy?

Answer 34

Focusing on underlying needs rather than rigid demands.

Question 35

What is the principle of reciprocity in persuasion?

Answer 35

People feel compelled to return favors or concessions.

Question 36

How can reciprocity be used strategically in negotiation?

Answer 36

By making small concessions to encourage the other party to reciprocate.

Question 37

How does social proof influence negotiations?

Answer 37

People are more likely to agree if they see others supporting a similar position.

Question 38

How can you use social proof to strengthen your case?

Answer 38

Provide testimonials, references, or case studies showing others making similar deals.

Question 39

Why does scarcity increase negotiation leverage?

Answer 39

People value things more when they are perceived as rare or time-sensitive.

Question 40

How can you use scarcity in negotiations?

Answer 40

Limit availability, set deadlines, or highlight exclusive benefits.

Question 41

What is Cialdini’s 7th principle of influence?

Answer 41

Unity—people are more easily persuaded by those they see as part of their group.

Question 42

How can you create a sense of unity in negotiation?

Answer 42

Use inclusive language and highlight shared goals or values.

Question 43

Why should you manage emotions in negotiation?

Answer 43

Emotional reactions can cloud judgment and lead to poor decisions.

Question 44

What techniques help regulate emotions in negotiation?

Answer 44

Taking breaks, focusing on facts, and practicing mindfulness.

Question 45

What is a contingency contract?

Answer 45

A deal where terms depend on future events.

Question 46

Why use a contingency contract?

Answer 46

It helps manage risk and resolve disagreements about uncertain outcomes.