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Negotiations week 2
| Question | Answer |
|---|---|
| 5 conflict management styles | forcing, yeilding, avoiding, problem solving, compromising |
| when is forcing preferable and problematic | - prefered when: need speedy decision, issue important to you, other party lack expertise - problematic when issue complex, parties have equal power |
| yeilding | - accomodating, obliging, lower aspiration to give into requests - fall into agreement trap, find negotiating uncomfy |
| when is yeilding preferable and problematic | - prefered when issue more important to one person, relationship important - problematic when issue important to you, other party unethical |
| avoiding | - inaction, show little interest in agreement or negotiation, dont like conflict - fall into lose lose trap |
| when is avoiding preferable and problematic | - prefered when issue trivial, use to cool off - problem when issue important to you, need to be fast |
| problem solving | - collab, integrative, pursue solution that satisfies both parties - most effective |
| when is problem solving preferable and problematic | - prefer when issue complex, time, relationship - problem when purely distributive, deal simple |
| compromising | - suboptimal behavior, not the best - could fall into lose lose |
| when is compromising preferable and problematic | - prefer when goals similar - probelm when leave value on table |
| opening offer | must balance fairness with target, don't want too close to reservation, should be beyond target is target is reasonable - intial offer better predictor of final offer than any other one |
| is it better to make first offer | - control negotiation by making it, best to make it first unless other person has more info than you or you dont know their bottom line |
| anchoring effect | once number is given, tend to be influenced by this number |
| first offer effect | - all things being equal, person who gives first offer will have the best deal - best if you have equal or more info - and avoid anchoring too close to reservation price |
| first offer regret | when first offer is taken immediately |
| winner's curse | when offer is given and other party immediately agrees |