TEST BANK for The Mind and Heart of the Negotiator 7th Edition by Thompson Leigh. ISBN 9780135198667 by welldoneassistant

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 1 Negotiation: The Mind and The Heart 1.1 Multiple-Choice Questions 1) Anytime you cannot get what you want without the cooperation of others, you are negotiating. In simple terms, negotiation is best described as: A) a contest of wills between opposing parties B) an interpersonal decision-making process necessary whenever people cannot achieve their objectives single-handedly C) a third-party mediation D) the process of compromise so as to instigate conflict, with one side coming out the victor Answer: B Page Ref: 1 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Negotiators need to be effective in terms of maximizing all areas of potential value at the bargaining table. In virtually any negotiation, two things are at stake: economic value and: A) personal reputation B) a person's ego C) relationships and trust D) money and scarce resources Answer: C Page Ref: 2 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Within organizations, people are increasingly interdependent both laterally and hierarchically. When negotiators are described as being interdependent, that means those people need to know how to: A) integrate their interests and work across functional areas B) have similar incentive structures C) be self-sufficient and self-focused D) develop different norms of communication Answer: A Page Ref: 5 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) Regarding some of the major shortcomings that negotiators struggle to overcome, "lose-lose" negotiation occurs when negotiators: A) settle for too little by making concessions that are too small B) both parties make unwise sacrifices and fail to recognize and exploit opportunities for mutual gain C) accept all terms offered by the counterparty D) do not sign a binding contract Answer: B Page Ref: 4 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) Negotiators often struggle with several shortcomings that trap them into achieving less than optimal negotiation outcomes. When a negotiator rejects a proposal that is demonstrably better than any other option available, the negotiator is being trapped by: A) the agreement bias B) the winner's curse C) hubris D) settling for too little Answer: C Page Ref: 7 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) In negotiation it is important to optimize one's strategies by attempting to achieve as much as possible. Regarding this aspirational outlook, Nobel Laureate Herb Simon distinguished optimizing from satisficing. Satisficing is best defined as: A) helping other people B) negotiating a slice of the pie that is much larger than your original aspirations C) doing just enough to reach one's minimum goals D) setting high aspirations Answer: C Page Ref: 2 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) When we delve into managers' theories about negotiation, we often find that they operate with faulty beliefs. Which of the following is a myth that negotiators often hold about negotiation? A) Whatever is good for one party must be good for the counterparty B) A good negotiator should always approach a counterparty as if they were of equal status C) Good negotiators play it safe and do not take risks D) Good negotiators rely on intuition Answer: D Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2 Copyright © 2020 Pearson Education, Inc.

8) Negotiation is a mixed-motive enterprise, which refers to the fact that parties: A) manage both economic and psychological dimensions B) have incentives to cooperate as well as compete C) use both deliberate thought and intuition D) balance rewards and costs Answer: B Page Ref: 9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) Improving your skills in your pursuit to become a successful negotiator depends on: A) learning how to "outsmart" the counterparty B) taking advantage of the counterparty's lack of preparation C) seeking feedback, analysis, and focused practice D) always letting the other party share their interests first Answer: C Page Ref: 8 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) A key reason why business people need negotiation skills is due to the increased specialization of skills. This skill specialization increases the need for negotiators to understand the motivations behind another's behavior because: A) people are less dependent on each other for project success B) people are becoming less competitive with one another in the workplace C) people are more dependent on each other in the workplace D) managers must customize incentive and punishment structures for all employees Answer: C Page Ref: 5 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 11) Information technology provides special opportunities and challenges for negotiators. One of the main challenges for negotiators is: A) disposing of old equipment B) training employees in new software programs C) troubleshooting system security issues D) working in a culture of 24/7 availability Answer: D Page Ref: 5 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

12) Besides differences in language and currency issues, one of the main challenges that globalization presents for negotiators is: A) the tendency of people to see what they want to see when appraising their own performance B) learning and adjusting to different norms of communication between parties C) finding housing for employees D) influencing the economic forces within the foreign country Answer: B Page Ref: 6 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) Negotiators who have developed a bargaining style that works only within a narrow subset of the business world will suffer unless they can: A) act more competitively B) act more cooperatively C) take risks D) broaden their negotiation skills across businesses, industries, and cultures Answer: D Page Ref: 6 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14) One of the major shortcomings in negotiation occurs when negotiators make too-large concessions resulting in a too-small share of the bargaining pie. This negotiation trap is called: A) egocentrism B) the confirmation bias C) the winner's curse D) the mixed-motive negotiator Answer: C Page Ref: 7 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) With regard to negotiation style, truly effective negotiators are neither tough or soft, but rather they: A) are friendly B) are principled C) rely on intuition D) are dignified Answer: B Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

16) Negotiation experience in the absence of ________, is largely ineffective at improving negotiation skills. A) optimism B) successful outcomes C) high profile parties D) diagnostic feedback Answer: D Page Ref: 8 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 17) Effective negotiation involves all of the below listed strategies EXCEPT: A) deliberate planning B) thoughtful preparation C) the use of a "gut feeling" or intuition D) strategic reasoning Answer: C Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) A key to successful preparation is assuming the counterparty is as smart, informed, and motivated as you are. What is the name of such a perspective? A) The optimizing model B) The fraternal twin model C) The satisficing model D) The fixed-pie bias Answer: B Page Ref: 11 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 19) In negotiation, people hold tightly to several false beliefs about the process. Of these, the fixed-sum perception is defined as: A) the assumption that attacking the other party is the best way to get most of the pie B) the assumption that capitulating to the other negotiating party's demands is the best way to a win-win agreement C) the belief that whatever is good for one party must ipso facto be bad for the other party D) the assumption that sticking to your demands and refusing anything but the majority of the pie is the best way to get most of the pie Answer: C Page Ref: 9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

20) The process of negotiation is best described as a ________, which involves both ________ and ________. A) self-assessment; focus; introspection B) grass-is-greener negotiation; selectiveness; restlessness C) strategic risk; aggressiveness; gambling D) mixed-motive enterprise; cooperation; competition Answer: D Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) Educated, smart, motivated people often do not realize their negotiating potential. Over ________ of corporate executives and CEO's leave money on the table at the conclusion of a negotiation. A) 25% B) 46% C) 66% D) 80% Answer: D Page Ref: 2 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 22) Many negotiators approach a negotiation from the perspective of having to choose between: A) getting what they want or being liked B) a choice that puts them in a weak position or a choice that might strengthen them in the future but has an uncertain probability C) the lesser of two evils D) being aggressive toward the counterparty or being legalistic with the counterparty Answer: A Page Ref: 2 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

23) Negotiators often believe that if they make a personal sacrifice in the hopes of securing a business relationship rather than pushing to attain things that are important to them hope their personal sacrifice will be remembered by the counterparty and rewarded in future negotiations. This strategy is NOT advisable because: A) the personal sacrifice may make them look weak to the counterparty B) team members and the counterparty are not to be trusted C) the relational sacrifice a person makes today may not be remembered or reciprocated by the receiving party tomorrow D) the only strategy of consistent success in a negotiation is being aggressive, holding one's ground, and making very few concessions to the counterparty Answer: C Page Ref: 2 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 24) People often struggle with which negotiation strategies to use in short versus long-term relationships. If a negotiator believes that a negotiation is a single-shot situation and that they won't need to interact with the counterparty in the future, the negotiator will often use: A) an aggressive negotiation strategy B) a passive negotiation strategy C) an agent to represent themselves D) a contingent contract Answer: A Page Ref: 3 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Agreements where the outcome is one that creatively combines the negotiating parties' interests in a way that maximizes the joint economic value is called: A) a compromise agreement B) a fixed-sum agreement C) a reverse-split agreement D) an integrative agreement Answer: D Page Ref: 4 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

26) Following negotiation, there are always concerns by both parties that the agreed upon terms will be honored. It has been found that successful contract negotiations consider specific objectives when assessing the quality of contracts. Which of the following is NOT one of those objectives? A) How to maximize the likelihood of reaching a good agreement B) How to reach an agreement that will last C) How to reach an agreement that will need several ratifications by other parties to refine terms D) How to reach an agreement that fulfills the intended purpose Answer: C Page Ref: 7 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 27) Most negotiations are ________, meaning that if parties work together, they can create more joint value than if they are purely combative. A) fixed-sum B) win-lose C) variable-sum D) focal-point based Answer: C Page Ref: 9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) Of the many types of feedback that are potentially available to negotiators, information about the counterparty's ________ and ________ is particularly important. A) interests; priorities B) experience; specialized expertise C) skills; failures D) reputation; honesty Answer: A Page Ref: 8-9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 29) People who view negotiation as a challenge and believe that negotiation ability can be improved with experience and practice: A) achieve better deals when they see the negotiation as fixed-sum B) are naïve and achieve lower-quality deals than naturally gifted negotiators C) are more successful in reaching high-quality deals D) are more successful when they approach negotiations aggressively Answer: C Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

1.2 Discussion Questions 1) What are the key reasons why effective negotiation skills are increasingly important in the business world? Answer: They are increasingly important because of the following key reasons: (1) knowledge economy, (2) specialized expertise, (3) information technology, and (4) globalization. Page Ref: 4-6 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) With regard to how people fall short in negotiating, what are the most common "traps" of negotiation? Answer: Leaving money on the table (also known as "lose-lose" negotiation); settling for too little (also known as "the winner's curse"); walking away from the table (sometimes this shortcoming is traceable to hubris or pride; other times, it results from a gross miscalculation); and settling for terms that are worse than the alternative (also known as the "agreement bias"). Page Ref: 7 AACSB: Interpersonal relations and teamwork Difficulty: Easy 3) What are some of the primary reasons why overconfidence can be detrimental in negotiation? Answer: People with more experience grow more confident, but the accuracy of their judgment and the effectiveness of their behavior does not increase in a commensurate fashion. Overconfidence can be detrimental because it may lead people to take unwise risks. Page Ref: 8-9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 4) What are the most prevalent myths about negotiation, and how do these myths hamper people's ability to learn effective negotiation skills? Answer: The most prevalent myths are: Myth 1: Negotiations are fixed-sum in nature; Myth 2: Negotiators need to be either tough or soft; Myth 3: Negotiation skills are something that people are born with; Myth 4: Good negotiators rely on intuition or "gut feeling." Page Ref: 9-11 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) What is the fraternal twin model of negotiation, and why does it contribute to more successful outcomes in negotiation? Answer: The fraternal twin model assumes that the counterparty is every bit as motivated, intelligent, and prepared as you are. Thus, it contributes to more successful outcomes because parties rely on simultaneously expanding and allocating the pie of resources, rather than on "outsmarting" or tricking the other party. Page Ref: 11 AACSB: Interpersonal relations and teamwork Difficulty: Hard 9 Copyright © 2020 Pearson Education, Inc.

6) Why does the fixed-sum myth effect the strategic choices that negotiators make and what strategy to effective negotiators follow? Answer: The fixed-sum myth gives rise to a myopic view of the strategic choices that negotiators have. Most negotiators believe they must choose between behaving in a tough, punitive fashion to the counterparty or to the other extreme of being soft and concessionary. Effective negotiators are principled, and follow an enlightened view of negotiation strategy. They recognize that to achieve their own outcomes they must work effectively with the other party and cooperate, thus leveraging their own power and strengths. Page Ref: 10 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) Why is it beneficial for students of negotiation to learn and practice negotiation skills in a domain or industry that is unfamiliar to them? Answer: It is beneficial for students of negotiation to learn negotiation skills in an industry that is unfamiliar because learning negotiation skills in a context in which one already has some expertise may lead to context-dependence, so much so that the learned negotiation skills will not transfer to other situations. Page Ref: 9 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) When evaluating the success of a negotiation, what post-negotiation factors should you review and consider? Answer: Post-negotiation you should consider the post-deal implementation, the durability of the agreement, how your reputation will be affected by the agreement (or lack thereof), how you and perhaps the counterparty feel about negotiating together again, and the level of trust you feel for the counterparty and if the counterparty feels they can trust you to honor the terms of your agreement. Page Ref: 8, Exh. 1-1 AACSB: Interpersonal relations and teamwork Difficulty: Hard 9) Regarding short- versus long-term relationships, how are our interactions as negotiators affected by the digital world and what precautions should we take because of this interactive medium? Answer: The networked, virtual world blurs the distinction between short and long term negotiation relationships because most of our interactions are recorded or known to others. Even if a negotiator does not actually meet a given counterparty again, by virtue of social media, a detailed account of their interactions world surely be visible for anyone to see. For these reasons, it is with caution that negotiators should assume the details of their communications and behavior will be accessible for anyone who might be interested and consequently, act as though all negotiations have long-term implications. Page Ref: 3 AACSB: Interpersonal relations and teamwork Difficulty: Hard 10 Copyright © 2020 Pearson Education, Inc.

10) How has the popularity of decentralized business structures and the decline of hierarchical decision making challenged managers? Answer: The advent of decentralized business structures and the decline of hierarchical decision making provides opportunities for managers, but also poses some daunting challenges. People must continually create possibilities, integrate their interests with others, and recognize the inevitability of competition both within and between companies. Thus managers must be in a near-constant mode of negotiating opportunities. Negotiation comes into play when managers participate in joint ventures, partnerships, product launches, reorganizations, and project teams. Page Ref: 5 AACSB: Interpersonal relations and teamwork Difficulty: Hard

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 2 What to Do Before Negotiation 2.1 Multiple-Choice Questions 1) In any negotiation scenario, a negotiator needs to determine what would constitute an ideal outcome, however, problems often arise such as the winner's curse. In negotiation, the winner's curse occurs when: A) a negotiator sets his/her aspirations too high B) a negotiator makes an offer that is immediately accepted by the other party C) the counterparty demonstrates retaliative behavior D) no one can be trusted Answer: B Page Ref: 14 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Many negotiators do not think carefully about what they want before entering negotiations. One type of problematic negotiation behavior known as reactive devaluation refers to: A) a negotiator who does not know what he or she really wants other than not wanting what the other party is offering B) a negotiator who sets the target point too high and refuses to make any concessions C) a negotiator who overvalues the counterparty's offer D) an negotiator who opens the negotiation by setting their target too low Answer: A Page Ref: 14 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) A negotiator's BATNA (Best Alternative to a Negotiated Agreement) determines the point at which a negotiator is prepared to: A) make larger concessions B) keep options open C) reject the terms of and walk away from a negotiated agreement D) identify the counterparty's alternatives Answer: C Page Ref: 15 AACSB: Interpersonal relations and teamwork Difficulty: Easy

4) Your BATNA is time sensitive and is subject to market forces, thus negotiators should constantly attempt to improve their BATNAs. One strategy for improving one's BATNA in negotiation is to: A) discuss it in explicit terms with the counterparty B) identify several alternative options before going to the negotiation table C) replace it with an aspiration point D) revise it in reaction to progress of the negotiation Answer: B Page Ref: 15 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) A negotiator's reservation point has the most direct influence on their final outcome. A negotiator's reservation point is a quantification of the negotiator's: A) target point B) BATNA C) bargaining zone (ZOPA) D) opening offer Answer: B Page Ref: 16 AACSB: Interpersonal relations and teamwork Difficulty: Easy 6) When facing risk, many negotiators do not weigh a course of action by its impact on total wealth, rather they generally frame outcomes as either gains or losses relative to some arbitrary reference point. Instead, negotiators should consider the impact of three types of risk with regard to their alternatives. These three types of risk include: A) tactical risk, strategic risk, and overconfidence risk B) failure risk, BATNA risk, and information-sharing risk C) contractual risk, overconfidence risk, and failure risk D) strategic risk, BATNA risk, and contractual risk Answer: D Page Ref: 21 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) In negotiation, buyers and sellers may adopt differing bargaining positions for an object, but their private valuations for the object should not differ as a consequence of who has possession. This situation is termed the endowment effect and is best described as: A) the difference between what sellers demand and what buyers are willing to pay B) a tendency for people to value an object more once they own it C) the intrinsic value we associate with a certain outcome D) saving money instead of purchasing goods Answer: B Page Ref: 23 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2 Copyright © 2020 Pearson Education, Inc.

8) In negotiation, a dispute is best defined as a situation in which: A) parties have to resort to their BATNAs B) parties fail to exchange resources C) a claim is made by one party and rejected by the other party D) negotiators turn down favors and rewards from others Answer: C Page Ref: 27 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) In negotiation which of the following statements is generally NOT true when it comes to a negotiator's BATNA? A) It is dynamic and constantly changing B) Negotiation terms less than your BATNA should be accepted C) It is determined by the negotiator's available options D) The counterparty has an incentive to minimize the quality of your BATNA Answer: B Page Ref: 15 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) A more accurate model of negotiation is to approach it as a decision-making enterprise that is best described as a ________, which involves both ________ and ________. A) self-assessment; focus; introspection B) grass-is-greener negotiation; selectiveness; restlessness C) strategic risk; aggressiveness; gambling D) mixed-motive enterprise; cooperation; competition Answer: D Page Ref: 13 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 11) Effective negotiation preparation encompasses three general abilities: situational awareness, perspective-taking, and: A) financial assessment B) location assessment C) team assessment D) self-assessment Answer: D Page Ref: 13 AACSB: Interpersonal relations and teamwork Difficulty: Easy

12) In preparing for negotiation, a negotiator needs to determine what would constitute an ideal outcome, or favorable set of terms, also known as a: A) winner's result B) target point C) BATNA D) reservation point Answer: B Page Ref: 12 AACSB: Interpersonal relations and teamwork Difficulty: Easy 13) In order to reach a successful negotiation outcome, the negotiators must understand that their BATNA is: A) the outcome that the negotiator wishes to achieve B) able to be modified by persuasive offers C) not time sensitive D) determined by objective reality Answer: D Page Ref: 15 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14) The term used to represent the quantification of a negotiator's BATNA with respect to other alternatives is known as: A) the reservation point B) the target point C) the focal point D) a sunk cost Answer: A Page Ref: 16 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) Negotiators who make the mistake of not developing a reservation point before they negotiate often focus on an arbitrary value that masquerades as a reservation point. Such arbitrary points are called: A) personal blind spots B) focal points C) sunk costs D) linkage effects Answer: B Page Ref: 16 AACSB: Interpersonal relations and teamwork Difficulty: Easy

16) Negotiators should assess themselves and their resources before commencing negotiation. One question a negotiator should ask is, "What are my sunk costs?" A sunk cost is best defined as: A) money you have invested, that is for all practical purposes, spent B) a contractual cost C) money you expect to be paid at the completion of a service contract D) the yield expected from a stock price Answer: A Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 17) Many negotiations appear to be about a single, salient issue—such as price or salary. However, it is NOT advisable to focus on a single issue in a negotiation because single-issue negotiations are ________ in nature. A) variable-sum B) integrative C) mixed-motive D) fixed-sum Answer: D Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Negotiators should take the time to brainstorm how a single-issue negotiation may be segmented into multiple issues. By identifying and segmenting the negotiation into multiple issues, negotiators may create: A) a less complicated negotiation B) more issues that could lead to an impasse C) integrative potential D) a potentially illegal negotiation situation Answer: C Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

19) In a job interview situation, when the prospective employer asks about your desired salary, what is the recommended response to use? A) Make an extreme offer and negotiate your way back down to your acceptable BATNA range B) Give a salary range that would meet your needs in order to seem less fixated on a particular number. C) Make a take-it-or-leave-it offer D) Present a variety of different combinations of highly attractive offer packages that are of equivalent value to yourself Answer: D Page Ref: 20 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 20) Negotiators can focus on gains or losses during a negotiation. When faced with risk, most negotiators are ________ when it comes to losses, and ________ when it comes to gains. A) risk-averse; risk-seeking B) risk-seeking; risk-averse C) rational; irrational D) irrational; rational Answer: B Page Ref: 20 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) Which of the following situations would lead a negotiator to be the most uncertain about his or her BATNA? A) Potential alternatives present themselves all at once, giving the person a wide range of choices B) The person is presented with a take it or leave it offer C) The person is not confident in their reservation point D) Potential alternatives arise sequentially, rather than all at the same time Answer: D Page Ref: 21 AACSB: Interpersonal relations and teamwork Difficulty: Hard 22) Negotiators may have a manager who directs them to either "maximize their gains" in the negotiation or "minimize their losses". As compared to negotiators who focus on maximizing gains, negotiators who focus on minimizing their losses are more likely to: A) reach agreement B) minimize their strategic risks C) make few concessions and reach fewer agreements D) accept a sure thing Answer: C Page Ref: 21 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6 Copyright © 2020 Pearson Education, Inc.

23) The more ________ the negotiator, the more likely it is that she or he will make greater concessions. A) vigilant B) risk-averse C) risk-seeking D) confident Answer: B Page Ref: 22 AACSB: Interpersonal relations and teamwork Difficulty: Easy 24) An important component in determining whether a person feels they made the correct decision is counterfactual thinking. What is meant by counterfactual thinking in negotiation? A) A negotiator who focuses intensely on what outcome they want B) A negotiator who thinks about what might have been but did not occur C) A negotiator who plays the devil's advocate with the other party D) A negotiator who considers whether the other party will follow through on the terms of their agreement Answer: B Page Ref: 23 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) In negotiation, having your first offer immediately accepted by the counterparty is likely to lead to feelings of what might have gone differently. Having your first offer immediately accepted can also lead to: A) the overconfidence effect B) changing your BATNA C) hindsight bias D) improved preparation Answer: D Page Ref: 24 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 26) When one or more parties are involved in a negotiation, the situation becomes a team or multi-party negotiation. In a multi-party negotiation, what is meant by the term, "hidden table"? A) An undisclosed group of resources B) The ultimate goal of a good negotiator C) Important parties who are the real decision makers are not present at the negotiation table D) The undisclosed offers that could have been made Answer: C Page Ref: 25 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7 Copyright © 2020 Pearson Education, Inc.

27) If one negotiator has a negative, loss-frame mindset and the counterparty has a positive, gain-frame mindset in a negotiation, the negotiator with the ________ usually reaps a greater share of the available resources. A) positive-frame B) negative-frame C) lower sunk costs D) higher target point Answer: B Page Ref: 22 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) A negotiator who lacks a well-formed ________ risks agreeing to a settlement that is worse than what they could do by following another course of action. A) reservation point B) aspiration point C) focal points D) reference point Answer: A Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Easy 29) What is the one thing that each of the following have in common: the purchase price that home sellers paid for their house; new sewing machine at a baseball glove factory; marketing department's monies spent on research and focus groups. A) Strategic risk B) Interdependence C) Sunk costs D) Fixed-sum negotiations Answer: C Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Easy 30) As a negotiator, if you have not properly prepared, you might be influenced by the counterparty's persuasive appeals. However, a person's BATNA should change as a result of: A) persuasive arguments by the counterparty B) rumored workplace layoffs C) the counterparty's time constraints D) objective facts and evidence Answer: D Page Ref: 16 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

31) In some negotiation situations, one or both parties may require the counterparty to sign a nondisclosure agreement in advance of any projects they might do together. In this situation, both parties are taking a contractual risk, which means: A) one party might not honor the terms of this nondisclosure agreement B) the counterparty might have different private valuations for the value of the assets in the negotiation C) one party might accept the first set of agreeable terms and sign the contract immediately D) one party might use risky strategies at the bargaining table Answer: A Page Ref: 22 AACSB: Interpersonal relations and teamwork Difficulty: Hard 32) Negotiators whose first offer is accepted by the counterparty have more likely to do all of the following EXCEPT: A) prepare longer for a subsequent negotiation B) become reluctant to make the first offer again C) are not usually satisfied that their first offer was accepted and feel regretful D) distrust the counterparty (or feel very confident in their efficiency as a negotiator) Answer: D Page Ref: 24 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 33) The ________ refers to unwarranted levels of confidence in a person's judgment of their abilities and underestimation of the likelihood of negative events. A) seller's regret effect B) positional negotiator C) overconfidence effect D) grass-is-greener negotiator Answer: C Page Ref: 24 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 34) Negotiators who consider how the counterparty ________ the negotiation are more effective than negotiators who consider how the counterparty ________ the negotiation. A) discusses; expedites B) thinks about; feels about C) closes; complies with D) guarantees; finalizes Answer: B Page Ref: 25 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

35) Frequently, parties in a negotiation are composed of people who are on the same side, but have differing beliefs. When parties are referred to as being "monolithic", this means that: A) the group lacks alignment B) they have differing values, beliefs, and preferences C) they are in agreement with one another concerning their negotiation interests D) they will approach the negotiation from the fixed-pie perception Answer: C Page Ref: 25 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 36) The most important piece of information a negotiator can have about the counterparty is: A) their reservation point B) their aspiration point C) their BATNA D) the counterparty's hidden table Answer: C Page Ref: 26 AACSB: Interpersonal relations and teamwork Difficulty: Easy 37) Negotiators who have high situational awareness have knowledge about: A) linkage effects, norms, and time constraints B) the counterparty's interests C) the certainty of future events D) how the counterparty feels about the negotiations Answer: A Page Ref: 26 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 38) Which of the following is an example of a transactional negotiation? A) A seller says that a buyer still owes her money and the buyer disagrees B) A buyer asks a seller for the price of an item C) A buyer needs their car fixed, but the seller refuses to fix it D) A buyer pays a seller money for services rendered Answer: D Page Ref: 27 AACSB: Interpersonal relations and teamwork Difficulty: Easy

39) Negotiation outcomes from one agreement between parties often have implications and set precedent for future negotiations — often referred to as: A) repetitive negotiations B) linkage effects C) monolithic parties D) unwarranted causation Answer: B Page Ref: 27 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 40) A final deadline is a fixed point in time that ends the negotiations. The rate of concessions made by negotiators ________ as negotiators approach final deadlines. A) decreases B) ceases C) increases D) forecasts the likelihood of the counterparty's compliance with the agreement terms Answer: C Page Ref: 29 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2.2 Discussion Questions 1) In what way does the fixed-pie perception affect a person's preparation for negotiation? Answer: The fixed-pie perception means that whatever is good for one person must ipso facto be bad for the other party. Negotiators who have this perception usually adopt one of three stances: resign themselves to capitulating to the other side, prepare for a battle of wills, or mutual compromise in an attempt to reach a midpoint between opposing desires. Page Ref: 1 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) What are some of the problems that can arise in the determination of one's target or aspiration point in a negotiation? Answer: Identifying a target or aspiration may cause three major problems: setting target or aspirations too low and opening the negotiation by requesting something that is immediately granted; setting the target point too high and refusing to make concessions; not knowing what one really wants–only that one wants what the counterparty is not giving and does not want what the counterparty is offering. Page Ref: 13-14 AACSB: Interpersonal relations and teamwork Difficulty: Hard

3) What is the difference between a target point and reservation point, and why is it important not to confuse the two? Answer: A target point relates to an ideal situation, but a reservation point relates to what represents as one's BATNA. The negotiator who lacks a well-formed reservation point risks the following fatal flaws: agreeing to a settlement that is worse than what the negotiator could do or walking away from a potentially profitable deal. Page Ref: 19 AACSB: Interpersonal relations and teamwork Difficulty: Easy 4) Why should negotiators segment the issues in a negotiation into multiple issues and identify issue alternatives rather than engage in a single-issue negotiation? Answer: In most negotiation situations, it creates more integrative potential if negotiators take time to brainstorm how a single-issue negotiation may be segmented into multiple issues. By doing so, negotiators can add value to negotiations, formalize the issues and alternatives by creating multiple-issue packages, and determine a variety of different combinations of the issues that all achieve his or her target point all while looking flexible and cooperative to the counterparty. Page Ref: 19-20 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) What are some of the questions a negotiator needs to ask themselves when assessing the negotiation situation? What is one of the key threats to the ability of negotiators to consider the perspective of the counterparty? Answer: Some of the questions prior to commencing negotiations are: What do I want?, What are the issues in the negotiation?, What issues are relevant to the other party? A key threat to the ability of negotiators to take the perspective of the counterparty is egocentrism, or the tendency to focus on one's own interests and priorities. Negotiators often rely on their own interests and priorities when estimating those of the counterparty and fail to understand the interests of the other party. Page Ref: 4, 25 AACSB: Interpersonal relations and teamwork Difficulty: Hard 6) What situational questions should a negotiator find answers to when assessing a negotiation strategy? Answer: Questions such as: Is the negotiation one-shot, long term or repetitive? Is the negotiation a transaction or a dispute? Are linkage effects present? Is the counterparty negotiating with the intent to reach agreement or are they looking to stall negotiations? Is it legal to negotiate? Is ratification required? Are time constraints or other time-related costs involved? Are the contracts official or unofficial? Where do the negotiations take place? Are the negotiations public or private? What scripts guide the process of the negotiation? Do the negotiations involve more than one offer? Page Ref: 33, Exh. 2-2 AACSB: Interpersonal relations and teamwork Difficulty: Easy 12 Copyright © 2020 Pearson Education, Inc.

7) Why do negotiators incorrectly predict the consequences of final deadlines in a negotiation? Answer: It has to do with the more general psychological tendency to focus egocentrically on the self when making comparisons or predictions. Negotiators focus on the deadline's effect on themselves more than its effect of their negotiation partners. Negotiators also believe that final deadlines are a strategic weakness, so they avoid revealing their deadlines for fear their "weakness" will be exploited by the counterparty. Page Ref: 30 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) Why is a lengthy time horizon between the negotiation and the consequences of the negotiated agreement positive or negative? Answer: Greater temporal distance increases the incidence of profitable win-win behavior, including negotiators' preference for multi-issue proposals and value-added trade-offs. The longer the temporal distance between the act of negotiation and the consequences of the agreements, the better the agreement. The reason behind this outcome is that parties are less contentious because the realization is in the distance and that time stretch gives people the opportunity to discount the effects of any "burdens" imposed by the agreement. Page Ref: 30 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) Explain the difference between a "gain-frame" and a "loss-frame" when it comes to making decisions in negotiation. Answer: Under most circumstances, negotiators who are told to "maximize their gains" are in a "gain-frame" or a "glass half full" state of mind when approaching a negotiation. Negotiators who are in a gain-frame are more risk averse, are more inclined to accept a sure thing and reach agreement. Negotiators who are told to "minimize their losses" are in a "loss-frame" or "glass half empty" state of mind when approaching a negotiation. Negotiators in a "loss-frame" state of mind are more likely to adopt more risky bargaining strategies, preferring to hold out for a better settlement. These negotiators are more likely to use threats and exercise their BATNAs. Page Ref: 21-22 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) What are some of the advantages for establishing a framework for negotiation preparations? Answer: There are several advantages to having a framework for negotiation preparation: first, it can save the negotiator time; second, it assures the negotiator that relevant information will be considered; and third, when companies and organizations consistently use negotiation frameworks, colleagues can use these rules to communicate clearly with each other and codevelop shared mental models. Page Ref: 13 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

11) Since most negotiation situations are not one-shot negotiations where both parties will never see each other again, what are some of the characteristics and norms of repetitive negotiations? Answer: Most people in repetitive negotiations negotiate in the context of social networks and reputation information is carried through the negotiators' social networks. The link between a negotiator's reputation and their behavior is stronger for people who are more well-known in communities. Repetitive negotiators must renegotiate terms on some regular basis and therefore must consider how their relationship with the counterparty evolves and how trust is built and maintained over time. Page Ref: 27 AACSB: Interpersonal relations and teamwork Difficulty: Hard 12) The usual purpose of negotiations is to reach agreement if it is possible, however some negotiators don't enter into negotiations with this purpose. Describe an example of a false negotiation situation. Answer: A false negotiation situation occurs when a party can gain more by stalling negotiations until an external change happens and thus improves the position of the stalling party. False negotiators seek to avoid agreement but to artificially extend the negotiation, encumber negotiations, and conceal these intentions by putting on a facade of cooperation. Page Ref: 28 AACSB: Interpersonal relations and teamwork Difficulty: Hard

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 3 Distributive Negotiations: Claiming Value 3.1 Multiple-Choice Questions 1) The bargaining zone, or zone of possible agreements (ZOPA), is the range: A) below the seller's reservation point and above the buyer's target point B) above the seller's focal point and above the buyer's aspiration point C) of overlap between negotiators' reservation points D) between negotiators' target points Answer: C Page Ref: 35 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) In the bargaining zone, the negotiator's surplus is the positive difference between: A) negotiators' reservation points B) the settlement outcome and the negotiator's reservation point C) the bargaining surplus and the settlement outcome D) the best and worst possible economic outcomes Answer: B Page Ref: 37 AACSB: Interpersonal relations and teamwork Difficulty: Easy 3) Some negotiators reveal their reservation point to demonstrate good faith. If you reveal your reservation point during the course of negotiation: A) the other party has little or no incentive to offer you any more B) parties will reach an impasse C) the counterparty will reveal their reservation point D) you will get a bigger slice of the pie Answer: A Page Ref: 39-40 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 4) In some negotiations, the bargaining zone may be nonexistent or even negative. A negative bargaining zone indicates that: A) parties are worse off by not reaching agreement than by reaching agreement B) there is no positive overlap between the parties' reservation points C) parties should keep negotiating to find a positive bargaining zone D) the counterparty's first offer was not accepted Answer: B Page Ref: 36 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 1 Copyright © 2020 Pearson Education, Inc.

5) When a negotiator has reliable, thorough information about the negotiation object or service, they are in a good position to: A) open with an assertive aspiration point to anchor their offer early in the negotiation B) immediately reject the counterparty's first offer C) determine the exact midpoint between the last two offers on the table D) refuse to make any concessions Answer: A Page Ref: 42,44 AACSB: Interpersonal relations and teamwork Difficulty: Easy 6) When formulating counteroffers and concessions, negotiators need to consider four things: A) the starting value, the end value, the median value, and the magnitude of concessions B) the fairness, the misuse, the distribution, and the pattern of concessions C) the concession reciprocity, as well as the pattern, the magnitude, and the timing of concessions D) the impact, the size, the relative value, and the timing of endowment effects Answer: C Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) Concerning the multiple methods of fair resource division, which of the following statements is TRUE regarding the equity rule? A) Benefits should be proportional to need B) The resource should be divided equally C) The equity rule prescribes that outcomes are distributed without regard to inputs D) Distribution should be proportional to a person's contribution Answer: D Page Ref: 52 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) When negotiators make proposals that the other party considers extreme, this may cause the chilling effect. For example, if the counterparty opens with an "outrageous" offer, the negotiator should: A) lower his/her aspirations B) reveal his/her reservation price C) immediately re-anchor D) appeal to norms of fairness Answer: C Page Ref: 41, 61 AACSB: Interpersonal relations and teamwork Difficulty: Easy

9) When negotiators' reservation points overlap, mutual settlement can be profitable for both parties. However, if a negotiator desires to maximize their outcomes in a positive bargaining zone, which of the following best describes the challenges a negotiator has when approaching the negotiation? A) To reach a settlement that shares the pie equally with both parties B) To reach a settlement that is most favorable to oneself and does not give up too much of the bargaining zone C) To gain all of the bargaining surplus D) To have the counterparty leave defeated Answer: B Page Ref: 35 AACSB: Interpersonal relations and teamwork Difficulty: Hard 10) In a positive bargaining zone, negotiators' reservation points overlap. If the parties fail to reach an agreement when a positive bargaining zone exists, the outcome is ________ because ________. A) uneven; of the chilling effect B) even; both sides can walk away C) a suboptimal impasse; the negotiators left money on the table D) unilateral ; negotiators will have to exercise their BATNAs Answer: C Page Ref: 36 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 11) Because negotiations are costly to prolong, it is in both parties' interests to determine whether a positive bargaining zone is possible. If the negotiators discover that no positive bargaining zone exists, what is the recommended action they should take? A) Continue negotiating B) Stop negotiations and pursue other alternatives C) Increase the group size of both negotiating parties D) Take a break Answer: B Page Ref: 36 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

12) The ________ is the amount of overlap between parties' reservation points and a measure of the value that a negotiated agreement offers to both parties over the value of not reaching a settlement. A) negotiator's surplus B) bargaining surplus C) BATNA D) target point Answer: B Page Ref: 37 AACSB: Interpersonal relations and teamwork Difficulty: Easy 13) Negotiators who desire to increase their share of the bargaining zone are best advised to: A) set fair aspirations B) reveal their reservation price C) improve their BATNA D) avoid making the first offer Answer: C Page Ref: 39 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14) There are many other ways to demonstrate trust and build a relationship, short of revealing your BATNA. Revealing information about a BATNA or a reservation point: A) reduces a negotiator's power in a negotiation B) increases the counterparty's propensity for strategic risk taking C) is a pie-expanding strategy D) improves the negotiator's odds of getting what they want Answer: A Page Ref: 40 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) Some negotiators make extreme offers. The result of this strategy often means the counterparty may be offended and walk away from the table. This is known as the: A) chilling effect B) goal-setting paradox C) social utility decline D) winner's curse Answer: A Page Ref: 41 AACSB: Interpersonal relations and teamwork Difficulty: Easy

16) According to a research study examining post-negotiation satisfaction, negotiators who focus on their ideal outcomes do NOT feel as satisfied as negotiators who focus on their: A) first offer B) BATNA C) negotiator's surplus D) ZOPA Answer: B Page Ref: 43 AACSB: Interpersonal relations and teamwork Difficulty: Easy 17) The Boulwarism strategy, named after a former CEO, often engenders hostility from the counterparty because it prescribes that negotiators should: A) make their first offer their final offer B) immediately reanchor the negotiation if the other party opens first C) lie about their reservation point D) manipulate the counterparty's reservation point Answer: A Page Ref: 43 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Once a negotiator puts an offer on the table, it is time for the counterparty to respond to the offer, however some negotiators make premature concessions. What is meant by a premature concession in negotiation? A) Concessions that are not offered in a timely fashion B) Concessions that leave the negotiator wondering "what could I have gotten if I had done things differently?" C) When a negotiator makes multiple concessions before the other party responds D) When the counterparty gives up on offering concessions before agreement is reached Answer: C Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Hard 19) If the counterparty presents the opening offer, you are now in the position of responding with a counteroffer. Counteroffers accomplish two things; first they signal your willingness to negotiate, and second: A) they establish your reputation B) they help you save face C) they diminish the prominence of the counterparty's initial offer as an anchor point D) they indicate your acceptance of the counterparty's anchor point Answer: C Page Ref: 47 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5 Copyright © 2020 Pearson Education, Inc.

20) Concession reciprocity refers to the tendency of negotiators to reciprocate concessions. Unilateral concessions refer to ________; bilateral concessions refer to ________. A) differential concessions ; homogeneous concessions B) general concessions made by both sides ; specific concessions made by one party C) consistent concessions ; inconsistent concessions D) concessions made by one party ; concessions made by both sides of the negotiation Answer: D Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) Regarding effective strategies for a successful negotiation outcome, why should a negotiator be wary of the even-split ploy? A) You can seem altruistic and cooperative by considering an even-split B) By accepting the even-split ploy, you will harm your reputation C) The pattern of concessions is not always fair and the pattern of offers is not always equal D) By not accepting you can invite aggressiveness from the counterparty Answer: C Page Ref: 50 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 22) Negotiated outcomes will fall somewhere in the bargaining zone. The best possible economic outcome for the negotiator is one that ________, thereby inducing the other party to ________, but allows the focal negotiator to ________. A) greatly exceeds the counterparty's reservation point; immediately accept; rescind on the agreement at any time B) just meets the counterparty's reservation point; agree; reap as much gain as possible C) exceeds the counterparty's budget; reject the proposal; walk away from the table with no loss D) is less than the counterparty's BATNA; accept the proposal; see into the counterparty's interests Answer: B Page Ref: 37 AACSB: Interpersonal relations and teamwork Difficulty: Hard 23) With regard to claiming value, negotiators should be willing to settle for outcomes that ________ their reservation point and ________ offers that are less than their reservation point. A) exceed; reject B) are worse than; reject C) match; accept D) change; match Answer: A Page Ref: 38 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6 Copyright © 2020 Pearson Education, Inc.

24) Many negotiators do not think about their BATNA before negotiating. No other thing can help a negotiator get a bigger slice of the negotiation pie than: A) desperation B) a strong target point C) being promotion-focused D) a great BATNA Answer: D Page Ref: 39 AACSB: Interpersonal relations and teamwork Difficulty: Easy 25) Prior to beginning negotiations, parties are advised to really assess their BATNAs. What is the best way for parties to leverage the power of their BATNAs? A) By building a trusting relationship with the counterparty, a negotiator can best leverage their BATNA by telling the counterparty about their options and working together on a mutual agreement B) By privately unpacking their multiple alternatives, negotiators can make more aggressive opening offers, and ultimately achieve better outcomes C) By consolidating their BATNA alternatives to a single option, negotiators can keep negotiations simple and speed up conversations towards a final agreement D) Negotiators should come up with some true BATNA options and a few false ones so as to leverage the counterparty's uncertainty and use them to pressure them into an agreement Answer: B Page Ref: 39 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 26) Be careful when the counterparty discloses their BATNA at the outset of the negotiation. When the counterparty discloses his or her BATNA at the outset of the negotiation, negotiators often respond with all of the following actions, EXCEPT: A) make less demanding offers B) settle for less profit C) disclose more truthful information D) make more extreme demands for money and time Answer: D Page Ref: 41 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

27) Your aspiration point defines the upper limit on what you can get in a negotiation. Because you will usually never get more than your first offer, your first offer represents ________ in the negotiation. A) an important anchor point B) your BATNA C) your reservation point D) a sunk cost Answer: A Page Ref: 41 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) Many negotiators prepare for a negotiation by setting goals for their negotiated outcomes. When setting goals, each of the following statements are true possibilities for their negotiation, EXCEPT: A) high aspirations for the negotiation tend to exert a self-regulating effect on a negotiator's behavior B) it is advantageous to a negotiator to set a high, somewhat difficult aspiration point early in the negotiation C) negotiators who set nonspecific goals tend to lead to better optimized, win-win agreements than those negotiators who set very specific goals D) the highest negotiated outcomes are associated with a combination of high goals and cooperation Answer: C Page Ref: 42 AACSB: Interpersonal relations and teamwork Difficulty: Hard 29) When a negotiator has their first offer immediately accepted by the counterparty, this signals that the negotiator did not set their aspirations high enough. This situation is known as: A) Boulwarism B) the winner's curse C) concession retrograde D) the goal-setting paradox Answer: B Page Ref: 43 AACSB: Interpersonal relations and teamwork Difficulty: Easy

30) In a situation in which you have good information about the negotiation object or service and your counterparty is believed to also have done their research and is knowledgeable about the negotiation, what is recommended as the best, next action to take in the negotiation? A) Make the opening offer B) Wait or allow the counterparty to make the first offer C) Do more research and improve your knowledge of the counterparty D) Make your first offer your final offer Answer: A Page Ref: 44 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 31) The first offer that falls within the bargaining zone acts as a powerful anchor in negotiations and has a strong effect on the counterparty's counteroffer. Indeed, first offers are so powerful that they correlate at least ________ with the final outcome of the negotiation. A) 50% B) 60% C) 75% D) 85% Answer: D Page Ref: 44 AACSB: Interpersonal relations and teamwork Difficulty: Easy 32) Sometimes negotiators state a range as an offer rather than a specific number, also known as a point offer. Which of the following types of range offers has the highest success in anchoring the counterparty closest to a negotiator's reservation price? A) Bolstering-range B) Bracketing-range C) Backdown-range D) Balancing-range Answer: A Page Ref: 46 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 33) When making a precise offer, it is important to consider how precision affects the proposer as well as the recipient of the offer. Greater offer precision works when the recipient is an amateur, but can backfire when the recipient is an expert, unless the negotiator: A) acts very confidently and signals they have a better BATNA option B) has information they can use as leverage against the counterparty expert C) can provide the expert a legitimate rationale for their offer precision D) has influence with the counterparty's hidden table Answer: C Page Ref: 46 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9 Copyright © 2020 Pearson Education, Inc.

34) Some negotiations involve the exchange of pleasantries and other conversation before offers are tendered, in other negotiations, people immediately initiate a volley of offers. In most situations, ________ first offers are more likely to lead to agreements that meet parties' interests as compared to ________ first offers, even when controlling for the overall duration of the negotiation. A) early; late B) direct; indirect C) late; early D) indirect; direct Answer: C Page Ref: 47 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 35) Once the first offers are on the table, the negotiation is not done. Ideally, negotiators need to not become stubborn and entrenched about what they want and instead begin a series of reductive counteroffers known as: A) concessions B) degradation C) curtailments D) rollbacks Answer: A Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Easy 36) The magnitude of a negotiator's concessions is a powerful communication device. What advice is considered best when making concessions with a counterparty? A) Make large concessions to show the counterparty you are interested in quickly coming to agreement B) Match but don't exceed the concession magnitude of the counterparty C) Start out by making a minimal concession, then slowly increase the magnitude of your concessions as you approach your reservation point. D) Make a small number of large concessions rather than a large number of small concessions Answer: B Page Ref: 49 AACSB: Interpersonal relations and teamwork Difficulty: Hard

37) Agent Scott Boras, who represents many of the highest-paid baseball players in MLB, brings an encyclopedic-sized binder with the accomplishment details of every one of his clients, and when negotiating for a client's contract with a team, he includes obscure charts of the players' potential impact on that team's bottom line. By bringing this binder to a negotiation, Mr. Boras is engaging in offer: A) authentication B) subversion C) amplification D) substantiation Answer: D Page Ref: 41 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 38) Negotiators often use two types of rationales when discussing the value of an item or service. One of these is called a constraint rationale and is best exemplified/demonstrated by the following statement: A) "If you will look at the rust hidden on the underside of the wheel wells, you will see that this car is not worth more than $15,000". B) "I had a prospective buyer come by yesterday and was offering to pay $30,000". C) "I see other cars on the lot that are this year's models and are selling for less than you are asking for this 2016 model". D) "I can't pay more than $35,000 for this car—that's all the budget I have!" Answer: D Page Ref: 51 AACSB: Interpersonal relations and teamwork Difficulty: Hard 39) Concession aversion refers to the tendency for some negotiators to be disinclined to make concessions. Negotiators show stronger concession aversion and ultimately claim more value when negotiation proposals: A) are presented late in the meeting B) are framed to highlight their own resources C) are framed to highlight the counterparty's resources D) are presented early in the meeting Answer: B Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

40) Even though negotiators may make concession in a back-and-forth method, this exchange does not always go smoothly or lead to equal concessions. One method that helps parties avoid escalating conflict to reach mutual settlement within the bargaining zone is the ________ which is based on the reciprocity principle, calls for one party to make a concession and invites the other party to reciprocate by making a concession. A) Negotiation dance B) Anchor point model C) Practitioner-researcher paradox model D) Graduated reduction in tension (GRIT) model Answer: D Page Ref: 49 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3.2 Discussion Questions 1) What defines the bargaining zone in a negotiation? How does a positive or negative bargaining zone affect the outcome of a negotiation? Answer: The bargaining zone is the range between negotiators' reservation points. A positive bargaining zone means that the negotiators reservation points overlap — the most the buyer is willing to pay is greater than the least the seller will accept. This overlap means that mutual agreement is better than resorting to BATNAs. If the parties fail to reach agreement when their reservation points overlap, the outcome is an impasse and suboptimal because negotiators leave money on the table. A negative bargaining zone indicates there is no positive overlap between the parties' reservation points and negotiators should not waste time negotiating but exercise their BATNAs instead. Page Ref: 35-36 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) What are the most important factors to consider when making concessions in negotiation (so as to maximize your share of the bargaining zone)? Answer: When planning concessions, negotiators need to consider concession reciprocity, as well as the pattern, the magnitude, and the timing of concessions. Negotiators should not offer more than a single concession at a time, however, many negotiators make premature concessions–more than one concession in a row before the counterparty responds. Another consideration is to determine how much to concede–the amount reduced or added (depending upon whether one is a seller or buyer) from one's previous offer. It is unwise to make consistently greater concessions than one's opponent and be wary of the even-split ploy. The timing of concessions refers to whether they are immediate, gradual, or delayed and depending on this timing can affect counterparty satisfaction with the agreement. Page Ref: 48 AACSB: Interpersonal relations and teamwork Difficulty: Hard

3) Should a negotiator reveal his or her reservation point? Why or why not? Are there times when it might be appropriate to do so? Answer: Revealing one's reservation point is generally not a good strategy unless it is especially good and the bargaining zone is small. This knowledge allows a negotiator to make offers that barely exceed the counterparty's reservation point and claim the entire bargaining surplus for oneself. Some negotiators reveal their reservation point to demonstrate that they trust the other party, however, more effective ways exist to build trust. Additionally, "trusting" the counterparty with your reservation point does not help to maximize your surplus. There are a few situations when it is appropriate to truthfully reveal your reservation price: 1.) when you have exhausted your time to negotiate and are about to exit the negotiation without a deal and you sense that the bargaining zone may be very small or negative. 2.) You have a great BATNA and an aggressive reservation price and you would be happy if the counterparty matched or barely exceeded your reservation point. In this case, negotiators can signal their BATNA. Page Ref: 39-40 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) What are some of the costs of lying in a negotiation? Answer: Lying about your reservation point reduces the size of the bargaining zone and negotiations may end in impasse. Additionally, it is difficult to save face in a situation where your lies are called out—you appear untrustworthy when you retract from your previous positions. Page Ref: 38,40 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) What are some factors that dictate which rules of fairness are employed in a specific negotiation situation? Answer: Often, a negotiator's relationship to the other party influences the choice of fairness rules (equality rule for negotiators who share similar attitudes and beliefs, or are likely to engage in future interaction, or if they are physically close to one another). When an allocation is public, equality is used; when allocation is private, equity is preferred. Fairness rules also depend on whether people are dealing with rewards versus costs (equality is used to allocate benefits, but equity is used to allocate burdens). The selection of fairness rules is also influenced by extenuating circumstances (e.g., in complex situations people are more likely to use the equality rule). Page Ref: 52 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

6) What happens if negotiating parties discover they have a nonexistent or negative bargaining zone? What is recommended for the negotiating parties with a negative bargaining zone? Answer: Negotiators may spend fruitless hours trying to reach an agreement. This situation can be costly for negotiators because during the time in which they are negotiating, their opportunities may be worsening. If the parties discover that a positive bargaining zone is impossible, they should not waste time negotiating, instead, they should pursue better alternatives to agreement. Page Ref: 36 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) What conditions allow negotiators to be more confident about the counterparty's reservation point? Answer: A buyer may invite the counterparty to call a competitor as a way of verifying that the buyer can indeed get the same price elsewhere for the good or service. Similarly, if a person says something that is not in his or her interest, there may be more of a reason to believe it. Page Ref: 38 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) Why is it recommended to set specific, challenging, and difficult goals for the outcome of the negotiation? Answer: Negotiators who set high, aspirational goals end up with more of the ZOPA than those who set lower aspirations. Negotiators whose aspirations exceed those of the counterparty get more out of the bargaining zone. Negotiators who have an unattractive reservation point and high aspirations demand more from their opponents than negotiators with attractive BATNAs and low aspirations. Buyers who set more ambitious aspirations achieve better economic outcomes; however, the sellers they are dealing with regard them to be less likeable, and as a result they are less willing to cooperate with them in the future. Page Ref: 41 AACSB: Interpersonal relations and teamwork Difficulty: Hard 9) What is the main difference between promotion-focused negotiators and prevention-focused negotiators? Answer: Promotion-focused negotiators conceptualize goals as ideas and opportunities, prevention-focused negotiators conceptualize goals as obligations and necessities. Promotionfocused negotiators who focus on "ideals" rather than "ought's" do better in terms of slicing the pie. Negotiators who focus on their accomplishments, hopes, and aspirations claim more resources than negotiators who focus on avoiding negative outcomes. Page Ref: 42-43 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

10) In the case of one negotiator being highly informed and well prepared for a negotiation and the counterparty being naïve and uninformed, which party is recommended to open with the first offer in the negotiation and why? Answer: In the case of significant, asymmetric information, the negotiator who is well informed and prepared is best advised to not open first. This is because in this situation, the informed and prepared negotiator does not run the risk of being "anchored" by the other party and there exists a possibility that the naïve counterparty may fall into the winner's curse—either by not asking for enough or overpaying. In this asymmetric negotiation situation, the informed negotiator should encourage the naïve negotiator to make the opening offer. Page Ref: 45 AACSB: Interpersonal relations and teamwork Difficulty: Hard 11) The habit of most negotiators is to use round numbers as offers in a negotiation. However, precise numbers have greater potency as psychological anchors in a negotiation. Why? Answer: People are more psychologically anchored by an offer that is a precise number than a round number because negotiators who make precise offers are viewed as being more informed or having greater expertise than negotiators who make round offers. However, although a precise offer does enhance the psychological anchoring of a proposer's opening offer, the proposer often feels the need to reduce the extremity or aggressiveness of the offer they make to the recipient. Page Ref: 46 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 12) Negotiated settlements fall somewhere in the ZOPA—but certain motivations determine where in this range the settlement will occur. Describe the conflicting motivations in the mixedmotive nature of negotiation. Answer: Because each negotiator tries to maximize their own share of the bargaining surplus, negotiations are mixed-motive in nature: negotiators are motivated to cooperate with the other party to ensure that a settlement is reached in the case of a positive bargaining zone, but they are motivated to compete with one another to claim as much of the bargaining surplus as they can. Page Ref: 37 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) What are the recommended steps to accurately assessing you BATNA prior to negotiation? Answer: As a first step in accurately assessing your BATNA, brainstorm every option you can imagine in the event that you do not reach an agreement in your current negotiation. Generate as many options as you can. As a second step, assign a probability to the likelihood of being able to exercise your BATNA. After you have assigned a probability to the likelihood of being able to exercise a given BATNA, the third step is to rank order your alternatives in terms of attractiveness to you. Page Ref: 39 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

14) What are some methods that a negotiator can use to correctly signal their BATNA to a counterparty? Answer: One way a negotiator can signal their BATNA without revealing it is to listen to the counterparty's offers, gently reject the offer, but to continue to keep the counterparty in conversation, letting them know that their offer is too low, giving them additional opportunities to slowly increase their offer over time. Another tactic to signal a BATNA is to "accidentally" leave evidence of that BATNA option somewhere that the counterparty might see it—Ex: intentionally leaving a competitor's logo on a presentation shown to the counterparty, but acting like it was an accidental oversight. Page Ref: 40 AACSB: Interpersonal relations and teamwork Difficulty: Hard 15) Describe the Anchoring Information Model—what does it do? According to the model, what information does a negotiator's first offer have on the overall negotiation? Answer: The Anchoring Information Model predicts when and why making the first offer helps or hurts negotiators. According to the model, first offers have two side-effects: First, they serve as anchors that pull final settlements toward the initial first offer value (also known as anchoring) which produces a first-mover advantage. Second, first offers convey information about the sender's priorities and interests which can make that negotiator vulnerable to exploitation and increases the risk of a first-mover disadvantage. Page Ref: 44 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) Even though as a negotiator you have researched whether to open first and planned your opening offer, the counterparty does not follow your plan. The counterparty opens first with a very reasonable first offer. What are some reasons why it is unwise to accept the counterparty's first offer? Answer: It is unwise to accept the first offer made in a negotiation because negotiators whose first offers are accepted often kick themselves mentally, thinking counterfactually about how they could have done better and asked for more. In addition, negotiator's whose first offers are accepted as less satisfied with the negotiation agreement than those negotiators whose counterparty engages in a back and forth volley of offers before coming to an agreeable contract. Page Ref: 47 AACSB: Interpersonal relations and teamwork Difficulty: Hard

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 4 Integrative Negotiation: Expanding the Pie 4.1 Multiple-Choice Questions 1) Integrative negotiations are also known as: A) fair division negotiations B) equal-concession negotiations C) win-win negotiations D) distributive negotiations Answer: C Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2) It is not sufficient for a negotiator to have lots of experience negotiating to be excellent at creating win-win agreements. The biggest roadblock to the attainment of integrative agreements is: A) negotiators not being high enough in epistemic motivation B) one negotiator being too aggressive with their anchoring offer C) the faulty assumptions they make about the counterparty and the negotiation situation D) negotiators revealing their BATNAs too early in the negotiation Answer: C Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Win-win negotiation does NOT pertain to how resources are ________ but rather, to how resources are ________ by negotiators. A) enlarged; divided B) divided; created C) envisioned; distributed D) built; promoted Answer: B Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Easy

4) When both parties to a negotiation have the same interests, but still fail because of false conflict to capitalize on their compatible interests, this situation is best termed: A) naive conflict B) premature concessions C) the propinquity effect D) the lose-lose effect Answer: D Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) Sometimes, negotiations break down because negotiators have different beliefs, views, or forecasts that cannot be resolved. Why type of strategy may be useful for leveraging these differences and crafting deals in these types of situations? A) A contract in which both parties are confident of a positive outcome in any turn of events B) A contract in which a third party bears the risk for a future event C) A contract in which the outcomes depend on the realization of some future event D) A contract in which there is lots of room is left for ambiguity Answer: C Page Ref: 78-80 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) Even though many negotiators provide information during a negotiation, the counterparty may not necessarily understand the information. In negotiation, the illusion of transparency is best described as occurring when negotiators: A) make predictions when information is in short supply B) make judgments and decisions that differ from rational choices C) make reasonable estimations based on a single known data point D) believe they are revealing more than they actually are Answer: D Page Ref: 73 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) In negotiation sometimes parties' interests are compatible on some of the negotiations issues. However, even when some interests are compatible, ________ occurs when people believe that their interests are incompatible with the other party's interests. A) false conflict B) the halo effect C) a premature concession D) the lose-lose effect Answer: A Page Ref: 63 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2 Copyright © 2020 Pearson Education, Inc.

8) Unfortunately, many negotiators hold faulty assumptions that prevent the discovery and creation of integrative, win-win agreements. Which of the following strategies are useful in helping negotiators avoid lose-lose agreements? A) Negotiators should assume that their interests are opposed to the other party's interests B) Negotiators should make some premature concessions to the other party C) Negotiators should have plenty of negotiation experience D) Negotiators should develop an accurate understanding of the other party's interests Answer: D Page Ref: 63 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) By taking the perspective of the other party, negotiators attempt to see the world through the counterparty's eyes. Negotiators who are high in perspective-taking ability or consider the perspective of the counterparty often: A) increase their sense of empathy but this often decreases their problem-solving abilities B) limit the joint gains they can discover C) avoid impasses and engage in successful logrolling D) force the counterparty to make concessions Answer: C Page Ref: 68 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Certain information can be beneficial in the search for integrative negotiation agreements. The types of helpful information that negotiators should share are their ________ and ________. A) underlying interests; priorities B) BATNAs; reservation prices C) break-even points; target points D) short term goals; urgency of need for the resources discussed Answer: A Page Ref: 69 AACSB: Interpersonal relations and teamwork Difficulty: Easy 11) By signaling their willingness to share information about their interests, but not their BATNA, a negotiator can capitalize on the powerful principle of reciprocity. Which of the following situations best illustrates the reciprocity principle? A) A cab driver takes a customer to her hotel and picks up a new customer at the hotel B) A woman compliments a friend about her purse and the friend says thank you C) A car salesman shares information about the town where he grew up, and his customer shares that he also grew up near that town D) An employee shares information about a project's progress with a coworker who is uncertain Answer: C Page Ref: 70 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3 Copyright © 2020 Pearson Education, Inc.

12) Most negotiators approach negotiations by attempting to negotiate each issue on the table one by one. What is a disadvantage of such single-issue negotiations? A) Allows negotiators to make trade-offs between issues B) Decreases the chance of an impasse C) Prevents the parties from being tempted to compromise D) Does not allow negotiators to make tradeoffs between issues Answer: D Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) The strategy of making multiple equivalent simultaneous offers (MESO's) can be effective even with the most uncooperative of negotiators. The MESO strategy is best described as: A) a negotiator acting less aggressively when anchoring an opening offer B) a negotiator presenting the other party with at least two or more proposals of equal value C) a negotiator revealing their BATNA to the counterparty D) a negotiator inviting the counterparty to selectively choose the best parts from several offers Answer: B Page Ref: 75 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14) Negotiators have different strengths of preference for each issue on the bargaining table. In negotiation, the strategy of making concessions on low-priority issues in exchange for gains on high-priority issues is known as: A) the fixed pie perception B) logrolling C) counterfactual thinking D) consensus conflict Answer: B Page Ref: 79 AACSB: Interpersonal relations and teamwork Difficulty: Easy 15) In some negotiations, the parties agree on the probability of future events but feel differently about taking risks. As compared to negotiators who focus on minimizing costs (loss-frame), negotiators who focus on maximizing gains are: A) more likely to logroll or trade off issues in a win-win fashion B) more likely to accept a contingent contract C) less likely to use MESO's D) under the illusion of transparency Answer: A Page Ref: 79 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 4 Copyright © 2020 Pearson Education, Inc.

16) In negotiation, contingency contracts need to be carefully crafted so as to prevent misunderstanding. This involves several considerations including: enforceability, clarity, ability to be readily evaluated, and: A) measurability B) the ability for side-deals to be made C) relational accommodation D) ambiguity Answer: A Page Ref: 80 AACSB: Interpersonal relations and teamwork Difficulty: Easy 17) The post-settlement strategy is a method for improving the current negotiation agreement. How does a post-settlement settlement strategy work? A) Negotiators make bets based upon different world occurrences B) Occurs in advance of the parties undertaking full-scale negotiations and is designed to be replaced by a long-term agreement C) Establishes a concrete framework for final negotiations D) Negotiators agree to keep current agreement, but explore other options with the goal of finding another option that both prefer more than the current one Answer: D Page Ref: 80-81 AACSB: Interpersonal relations and teamwork Difficulty: Hard 18) Resource assessment involves the identification of the bargaining issues and alternatives. What is meant by the "issue mix" of a negotiation? A) The concessions each party is willing to make B) The problems that one party has related to their BATNA C) The union of both parties' issues D) The end result of an agreement Answer: C Page Ref: 82 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 19) A key benefit of post-settlement settlements in negotiation is that they: A) increase anchoring aggressiveness B) are unenforceable C) allow the parties to establish an interim code of a practice deal before the consensus on a final agreement D) allow both parties to reveal their preferences without fear of exploitation Answer: D Page Ref: 81 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5 Copyright © 2020 Pearson Education, Inc.

20) Pre-settlement settlements (PreSS) occur in advance of the parties undertaking full-scale negotiations and are designed to be replaced by a long-term agreement. Which of the following is a key characteristic of PreSS? A) PreSS are informal and unenforceable B) PreSS are formal and binding C) PreSS address issues after all the main issues have been decided upon D) PreSS address and resolve all outstanding issues Answer: B Page Ref: 80 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) When a negotiator draws conclusions about the counterparty's true interests from their responses to packages of different offers, the negotiator can discover opportunities for joint gains through the process of: A) substantiation B) perceived power C) inductive reasoning D) the reciprocity principle Answer: C Page Ref: 77 AACSB: Interpersonal relations and teamwork Difficulty: Hard 22) Banishing the fixed-pie perception from a negotiation is difficult. Which of the following situations would pose the greatest risk for a negotiator to harbor a fixed-pie perception? A) A negotiator who only has a short time to negotiate and feels rushed into agreement B) A negotiator who has high epistemic motivation C) A negotiator who believes a compromise agreement is best for both parties D) A negotiator who is held responsible for their negotiated outcome when negotiating with an in-group member Answer: D Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 23) Rarely are negotiations purely competitive situations. Rather, most negotiations are ________ in nature, meaning that parties' interests are imperfectly correlated with one another. A) mixed-motive B) unbalanced C) pareto-optimal D) volatile Answer: A Page Ref: 64 AACSB: Interpersonal relations and teamwork Difficulty: Easy 6 Copyright © 2020 Pearson Education, Inc.

24) In every negotiation, there are a number of resources on the table and those resources are yours to keep provided you and the other party can agree on how to divide them. Truly integrative negotiations are ones in which the outcome is pareto-optimal which means: A) one negotiator has created all the resources they need and no longer needs to negotiate for additional assets B) all opportunities are leveraged so that no resources are left on the table C) the negotiator in the weakest position has claimed the largest share of the resources D) the negotiators have been extremely efficient when communicating their needs and interests and there are resources left on the table to share with another party Answer: B Page Ref: 65 AACSB: Interpersonal relations and teamwork Difficulty: Hard 25) Most negotiations begin as single-issue negotiations but it is usually possible to identify more than one issue for negotiations. The probability that negotiators will have identical preferences across all issues is small and it is differences in ________ that may be profitably traded off to create joint gain. A) principles, trust, and ethics B) costs, expertise; and ownership C) accountability, goals, and social network connections D) preferences, beliefs and capacities Answer: D Page Ref: 66 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 26) All of the following strategies can help negotiators expand the pie of resources and create win-win agreements EXCEPT: A) separating opportunities from costs B) perspective taking C) revealing information about interests and priorities D) unbundling the issues discussed Answer: A Page Ref: 67-70 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

27) Left to their own devices, negotiators fail to ask diagnostic questions of the counterparty—in fact, only about ________ of negotiators seek information about the other party's preferences during negotiation. A) 50% B) 7% C) 25% D) 38% Answer: B Page Ref: 69 AACSB: Interpersonal relations and teamwork Difficulty: Easy 28) Sometimes a negotiator will possess information about the counterparty that are nondiagnostic to the negotiation. It is important to ask the right questions in a negotiation and this extra knowledge can affect the negotiation in all of the following ways EXCEPT: A) impedes effective information exchange B) impairs negotiator's effectiveness C) more likely to rashly leave the negotiation D) more likely terminate the search for an integrative agreement prematurely Answer: C Page Ref: 69 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 29) Skilled negotiators know how to recognize six key types of information during negotiations and know what information is safe to reveal to reach win-win outcomes. Which of the following information types is the most dominantly used distributive tactic for claiming value in a negotiation but their use often does NOT increase the likelihood of a win-win agreement? A) BATNA B) Underlying interests C) Key Facts D) Substantiation Answer: D Page Ref: 70-72 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

30) Most negotiators make the mistake of negotiating each issue independently of others. Singleissue offers lure negotiators into ________ and are usually not the best approach for win-win negotiation. A) pre-settlement settlements B) compromise agreements C) MESO agreements D) contingent contracts Answer: B Page Ref: 75 AACSB: Interpersonal relations and teamwork Difficulty: Easy 31) When making multiple equivalent simultaneous offers, which increases the likelihood of all parties discovering integrative solutions, what one rule should the offerer of the MESO make clear to the counterparty? A) No cherry-picking terms from each option that best suits the counterparty B) No discussions of what options to choose with hidden parties C) No concessions are allowed D) No post-settlement settlements Answer: A Page Ref: 76 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 32) Negotiators not only often have differences in interests and preferences, they can also view the world differently. The enlightened negotiator knows that ________ have more potential to create greater value than ________. A) preferences; risk attitudes B) differences; commonalities C) concessions; side deals D) perspective-taking; log-rolling Answer: B Page Ref: 78 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

33) A ________ is a single salient coordinating concept, shared by negotiators. Conversely, a ________ is a departure that takes place during the course of negotiation, when the trajectory seems to change. In the case of contentious negotiations that may be headed for impasse, a ________ might allow negotiators to reach mutual agreement by changing the course of negotiation. A) goal point; reference point; reference point B) reference point; goal point; goal point C) focal point; turning point; turning point D) turning point; focal point; focal point Answer: C Page Ref: 81 AACSB: Interpersonal relations and teamwork Difficulty: Hard 34) Negotiators who express interest in the counterparty's viewpoints are more willing to engage in future interactions with the counterparty and are more receptive. Negotiators who are ________ are more likely to reach higher joint outcomes because they ask more questions that benefit both parties. A) high in epistemic motivation B) low in epistemic motivation C) high in risk aversion D) low in risk aversion Answer: A Page Ref: 69 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 35) A steak house and their steak purveyor are in negotiations about product delivery. The parties reach an agreement, but then agree to explore other options with the goal of finding another option that both parties prefer more than the current agreement. This situation is an example of a: A) multiple equivalent simultaneous offer B) logrolling C) pre-settlement settlement D) post-settlement settlement Answer: D Page Ref: 80-81 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

36) When parties are considering potential trade-offs among valuations, forecasts, risks, time preferences, and capabilities, parties should focus on issues that are of ________ to one party and of ________ for the other party to provide. A) equivalent value; higher value B) lower value; higher value C) higher value; low cost D) low cost; equivalent value Answer: C Page Ref: 83 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 4.2 Discussion Questions 1) What are some of the misperceptions about the meaning of a win-win negotiation? Why do these misperceptions contribute to leaving money on the table in negotiation situations? Answer: Win-win negotiations are often erroneously equated with a fair division of resources. However, win-win is not compromise. It does not pertain to how resources are divided, but how resources are created. Negotiators may compromise, yet leave money on the table. Most negotiators are motivated to search for integrative agreements that leverage the interests of both parties. Unfortunately, many negotiators hold faulty assumptions that prevent the discovery and creation of integrative agreements. Two of the most common faulty assumptions are false conflict and the fixed-pie perception. Page Ref: 62-63 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) What are some of the questions a negotiator should ask when attempting to assess the likelihood of a win-win (integrative) agreement? Answer: A negotiator should ask whether the negotiation contains more than one issue (as differences in preferences, beliefs, and capacities may be profitably traded off); whether other issues can be brought in; whether side deals can be made; and whether parties have different preferences across negotiation issues. Page Ref: 66-67 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

3) What are some of the most common errors made by negotiators who are attempting to expand the pie of resources and find integrative agreements? What are some of the psychological principles underpinning these errors? Answer: The biggest detriment to the attainment of integrative agreements is the faulty assumptions we make about our counterparty and the situation. Negotiation is not a purely competitive situation, but rather, most negotiation situations are mixed-motive in nature meaning that parties' interests are imperfectly correlated with one another. The gains of one party do not represent equal sacrifices by the other. False conflict occurs when people believe that their interests are incompatible with the other party's interests when, in fact, they are not. The fixedpie perception is the belief that the other party's interests are directly and completely opposed to one's own interests. Page Ref: 62-64 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) What strategies should a negotiator keep in mind when presenting multiple offers of equivalent value simultaneously in a negotiation? What advantages are there to using this strategy? Answer: The strategy involves presenting the counterparty with at least two proposals of equal value to oneself, that is, devising multiple-issue offers, devising offers that are all of equal value to yourself; and making the offers all at the same time. In short, a negotiator presents "package deals" of offers to the other party and invites a response. Such negotiators enjoy more profitable negotiated outcomes, are evaluated more favorably by the other party, and are more satisfied at the end of the negotiation. Additionally, multiple offers increase the discovery of integrative solutions and serve as a more "sticky" anchor than do stand-alone offers as the counterparty views MECOs and the negotiator who offers them as more cooperative and legitimate than single-issues offers. Page Ref: 75-76 AACSB: Interpersonal relations and teamwork Difficulty: Hard 5) What "differences" can a negotiator effectively capitalize on when trying to expand the pie of resources? Answer: A negotiator can capitalize on differences in the valuation of the negotiation issues, in expectations of uncertain events, in risk attitudes, in time preferences, and on differences in capabilities. Page Ref: 78-79 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

6) Why is it important for a negotiator to ask the counterparty diagnostic questions about their underlying interests and priorities? Answer: Negotiators who ask the counterparty about their preferences are much more likely to reach integrative agreements than negotiators who do not ask the other party about his or her priorities. Diagnostic questions help negotiators discover where the value is, and such questions do not tempt the other party to lie or misrepresent themselves. Asking the other party about their BATNA or reservation price might induce him or her to exaggerate or lie, but it is not immediately clear why or how a negotiator would lie about his or her underlying needs. Thus, diagnostic questions are effective because they do not put negotiators on the defensive. Page Ref: 69 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) What benefits can negotiators get from using the strategy of Multiple Equivalent Simultaneous Offers (MESO's)? Answer: Negotiators who make multiple offers of equivalent value simultaneously (MESO's) have an edge in five critical aspects: They can (a) be more aggressive in terms of anchoring the negotiation favorably; (b) gain better information about the other party; (c) be more persistent; (d) signal their priorities more effectively; and (e) overcome concession aversion on the part of the other side. However, there are some important cautionary consideration to keep in mind when making multiple offers—do not allow the counterparty to "cherry pick" the best parts of different offers, and make assertive offers so you do not risk giving all of the gains to the counterparty. Page Ref: 77 AACSB: Interpersonal relations and teamwork Difficulty: Hard 8) Because negotiation is an ill-structured task with few constraints and a myriad of possible moves, there is no sure-fire strategy for reaching win-win agreement. However, the decisionmaking model of integrative negotiation gives five things that negotiators should do in order to reach agreement. Explain each of the five steps. Answer: The first component to the decision-making model of integrative agreements is resource assessment, which involves the identification of bargaining issues and alternatives. The second component is the assessment of differences which focuses on the negotiators assessing their differences in valuation, probability assessment, risk preferences, time constraints and capabilities. In the third phase of the model, parties should consider several potential trade-offs among valuations, forecasts, risks, time preferences, and capabilities. The next component to the model is for negotiators to identify a set of terms that constitute their minimum acceptance standards and what standards, if not met, would mean rejection. In the final stage of the model, negotiators have to make the decision of whether to prolong negotiations or to renegotiate. Negotiators should reassess the resources on the table and unbundle the initial set of issues, breaking them down into smaller issues that can be traded off, added, or alternatives found. Page Ref: 82-83 AACSB: Interpersonal relations and teamwork Difficulty: Hard

9) Compromise refers to reaching a middle ground between negotiators' positions. Many negotiators believe that "even-splits" signal a win-win agreement. Why is an even-split not the same as a win-win agreement? Answer: Even splits, like compromises, refer to how the bargaining zone is divided among the negotiators. However, each party may have very different needs from the same resource—in the case of an orange, one party might need just the rind, and the other party just the juice. When negotiators fail to realize that one party needs something they don't need, the opportunity for joint gain is missed and the "even-split" of the orange/resource is not a pareto-optimal, win-win agreement. Page Ref: 64-65 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Why is it important for negotiators to separate positions from interests and engage in perspective-taking with the counterparty especially in value-based conflicts? Answer: It is important for negotiators to separate their stated demands from their underlying needs because often, negotiators' positions might be strictly opposed, but their underlying interests may not be so opposed. When negotiators perceive themselves to be in conflict about values, they often see themselves as more opposed than when they are in conflict about scarce resources. When negotiators have an opportunity to engage in perspective taking of the counterparty, they reach higher joint outcomes, suggesting that showing positive concern for the counterparty is a more effective strategy in value-based conflicts. Page Ref: 67-68 AACSB: Interpersonal relations and teamwork Difficulty: Hard

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 5 Understanding Personality and Motivation 5.1 Multiple-Choice Questions 1) There are three main social value motivational orientations in negotiation: competitive, cooperative, and individualistic. The "cooperative" negotiator prefers to: A) maximize their own gains B) make interpersonal comparisons C) maximize joint gain, minimize differences D) make deductions about other people's motivations Answer: C Page Ref: 88 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Regarding the different aspects of a negotiator's motivational orientation and style, negotiators who use a competitive-based approach tend to: A) be indifferent as to how much the counterparty is getting in the agreement B) want to maximize the difference between their own outcomes and those of the other party C) want to minimize the difference between negotiators' outcomes D) legitimize the counterparty's needs Answer: B Page Ref: 91 AACSB: Interpersonal relations and teamwork Difficulty: Easy 3) Negotiators often compare their inputs and outputs with others. Which of the following statements is TRUE regarding individualistically motivated negotiators and social comparison in negotiation? A) When a pro-social cooperator negotiates with a competitor, they are less likely to accept an unfair offer, as compared to individualists and competitors B) People will sometimes prefer a smaller salary if it means this would equate outcomes between themselves and another party C) Men are more likely to engage in social comparison than women D) Women are more likely to engage in social comparison than men Answer: B Page Ref: 92 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) With regard to motivational orientation, the negotiator whose goals are individualistic in nature: A) prefers to maximize their own gains and is indifferent to how much the other person is getting from the agreement B) prefers to maximize the difference between their own profits and those of the other party C) seeks to minimize the difference between the negotiating parties' outcomes D) is aggressive and egotistical during the negotiation Answer: A Page Ref: 91 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) Often two cooperatively motivated negotiators end up with a lose-lose agreement because they fail to make their interests known to the other party. However, when a pro-social cooperative negotiates with a competitively motivated negotiator, the cooperative party is more likely to: A) avoid delegating the negotiation task to an agent B) concentrate solely on their reservation price C) avoid sharing their negotiation goals so that they don't have to make promises or report results D) accept an unfair offer as compared to individualists and competitors Answer: D Page Ref: 91 AACSB: Interpersonal relations and teamwork Difficulty: Easy 6) With regard to reputation in negotiation, negotiators who use adversarial, stubborn, and ethically-questionable behavior often have the effect of: A) enhancing their reputations B) improving their business relationships C) decreasing their effectiveness as a negotiator D) decreasing their group status Answer: C Page Ref: 91 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) Conflict escalation threatens the ability of negotiators to reach agreement. One of the most effective ways to discourage a competitive motivational orientation in the counterparty is: A) punishment B) laugh at the behavior C) do not reciprocate D) encourage a bigger threat Answer: C Page Ref: 93 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2 Copyright © 2020 Pearson Education, Inc.

8) With regard to gender and power in negotiation, which statement is most TRUE? A) There are no known differences between male and female negotiators B) Gender differences are due to "nature" (i.e., genetically-based differences that are not caused by environmental factors) C) Men are more successful in terms of claiming value, however, women are able to perform better when negotiating on behalf of another party D) Men claim a larger share of the bargaining surplus than do women because they are more competitively oriented than women Answer: C Page Ref: 94 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) Which of the following is a strategy that women can use to minimize gender differences and attain better outcomes in a negotiation? A) Address cognitive, motivational, and paradigmatic negotiation barriers with specialized training B) Use primary status characteristics to gain insight into the counterparty C) Use passive misrepresentation D) Create more ambiguity in the negotiation Answer: A Page Ref: 99 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Regarding strategies to improve the ability of female negotiators to claim value, one strategy that can be employed is a process whereby members of traditionally stereotyped groups redefine the pervasive cultural beliefs about their own group and is known as: A) realized power modification B) stereotype regeneration C) primary status characteristics shift D) social capital renewal Answer: B Page Ref: 99-100 AACSB: Interpersonal relations and teamwork Difficulty: Easy

11) During a negotiation, the greater the amount of situational ambiguity, the more a negotiation will be affected by: A) status, such that the advantage in the negotiation will be with the lower status individual B) social capital, such that the advantage in the negotiation will be with the individual with the lower social capital C) gender differences, such that the advantage in the negotiation will be with the stereotypeconsistent gender D) ethics, such that the advantage in the negotiation will be with the individual who stands firm in ethical decision making and choices Answer: C Page Ref: 100-101 AACSB: Interpersonal relations and teamwork Difficulty: Hard 12) In order to increase her perceived power in a negotiation, what negotiation strategy can a woman use to feel more confident expressing her interests, making more assertive offers, and holding out for better terms? A) Negotiate on behalf of a constituency B) Negotiate by herself, rather than with a team C) Consider the counterparty's interests and welfare D) Mention the names of influential people who know her Answer: A Page Ref: 101 AACSB: Interpersonal relations and teamwork Difficulty: Easy 13) Regarding differences in gender and each one's endorsement and engagement of lying to the counterparty, what motive best explains incidences of lying in negotiation? A) Men feel more competitive than women and greater competitiveness is associated with more lying B) Men are more rigorous in watching their ethical behavior than women C) Men have a higher underlying capacity to obtain benefits from an agreement and so don't use lying as often as female negotiators D) Women are more extreme in their opening offers, don't expect concessions during a negotiation, and therefore use misrepresentation to expand their share of the available resources Answer: A Page Ref: 98 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

14) If personality is viewed as an immutable characteristic or set of skills, a negotiator may increase their negotiation performance by understanding personality. The strongest and most reliable predictors of negotiation performance are also those that are most responsive to personal change and are: A) a pro-self focus and moral flexibility B) positive expectations and comfort with the negotiation C) a healthy pessimism and a competitive personality D) a mercurial personality and neuroticism Answer: B Page Ref: 85 AACSB: Interpersonal relations and teamwork Difficulty: Easy 15) Sometimes there is an element of truth to the beliefs held by people about personalities, but other times there is no actual evidence that supports these beliefs, better known as: A) situational attribution B) the uniqueness axiom C) emotional intelligence D) implicit theories Answer: D Page Ref: 86 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) When it comes to assertiveness, there is only a modest link between negotiators' self-views and how the counterparty sees them. Many negotiators come away from a negotiation thinking they came on too strong with the counterparty. The ________ refers to the fact that negotiators believe they are coming on too strong with the counterparty, but they actually are not. A) line-crossing illusion B) aggressive anchoring bias C) collective trap illusion D) attribution error Answer: A Page Ref: 86 AACSB: Interpersonal relations and teamwork Difficulty: Easy

17) The goal of understanding personality in negotiation is to better predict behavior, such as the counterparty's acceptance or rejection of a negotiation offer. One investigation used acoustic and visual cues to predict the likely behavior of a counterparty to a proposal. The best visual cue predictor of the counterparty (55%) was whether they: A) had their arms and legs crossed B) tilted their head C) tapped a pen D) steepled their fingers Answer: B Page Ref: 86 AACSB: Interpersonal relations and teamwork Difficulty: Easy 18) There are five most recognized personality traits that can reliably be measured and predict negotiator behavior in a number of different situations. All of the following are one of those "Big 5" personality traits EXCEPT: A) openness to experience B) conscientiousness C) introversion D) agreeableness Answer: C Page Ref: 86 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 19) Psychopathic personality traits include the absence of conscience, remorse or scruples in business settings. In mixed-motive negotiations, negotiators with psychopathic personality traits make more money when success favors ________ actions, but lose money when success depends on ________. A) cooperative; competition B) trustworthy; empathy C) risky; conservative actions D) competitive ; cooperation Answer: D Page Ref: 87 AACSB: Interpersonal relations and teamwork Difficulty: Easy

20) Attachment theory argues that people develop different attachment styles to others. The three most commonly studied attachment styles are: secure attachment, insecure attachment, and: A) avoidant attachment B) utility attachment C) high-risk attachment D) low-risk attachment Answer: A Page Ref: 87 AACSB: Interpersonal relations and teamwork Difficulty: Easy 21) Motivational orientation refers to the goals that people have in general social interactions as well as in negotiation. There are several different motivation types which all of the following are one of those motivations, EXCEPT: A) cooperative B) competitive C) intrinsic D) individualistic Answer: C Page Ref: 88 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 22) One way in which competitive negotiators differ from cooperative negotiators is in terms of civility at the bargaining table. Negotiators who expressed ________ in competition and use this strategy are more likely to feel rivalry and engender competition in the opponent. A) commendation B) prejudice C) ambivalence D) trash-talking Answer: D Page Ref: 91 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 23) Cooperatively motivated negotiators not only increase the size of the negotiation pie, but they also prefer an equitable division of the available resources. Relative to individualists and competitors, cooperators are more likely to engage in ________ their opponent. A) more disparaging remarks than B) the same level of cooperation as C) more research than D) less record keeping than Answer: B Page Ref: 92 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7 Copyright © 2020 Pearson Education, Inc.

24) How do different negotiation styles affect negotiation performance? A meta-analysis of competitive and cooperative bargaining strategies revealed that hardline strategies lead to ________ whereas softline strategies lead to ________. A) worse economic outcomes; better individual outcomes B) better socioemotional outcomes; worse socioemotional outcomes C) greater economic gain; better socioemotional outcomes D) reciprocation; faster agreements Answer: C Page Ref: 93 AACSB: Interpersonal relations and teamwork Difficulty: Hard 25) To reach integrative agreements, negotiators should not only have a social orientation, but also a deep understanding of the task. Negotiators who are high in both ________ and cooperative motivations develop greater trust and reach more integrative agreements than those low in cooperation and task understanding. A) power B) fear C) epistemic D) achievement Answer: C Page Ref: 93 AACSB: Interpersonal relations and teamwork Difficulty: Easy 26) At the negotiation table, women are less likely to initiate negotiation, ask for less, and settle for lower economic outcomes at the bargaining table. A significant reason why is because of the ________, which refers to the negative social reaction directed at women who are seen as violating gender norms because they engage in counter-stereotypical behaviors during negotiation. A) backlash effect B) logrolling effect C) line-crossing illusion D) Susan and Martha problem Answer: A Page Ref: 97 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

27) Women who ask for what they want in negotiation are less well-liked than women who do not self advocate. However, nonassertive, other-advocating women suffer a leadership backlash, and are regarded as less competent because their behavior is regarded to be ________ and ________. A) high-negative masculine; low-negative feminine B) high-negative feminine; low-positive masculine C) high-positive feminine; high-positive masculine D) low-positive masculine; low-positive feminine Answer: B Page Ref: 97 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) When asking for a better price, a better salary, or better terms in a negotiation, which of the following people is usually the victim of the greatest amount of discrimination and gets the worst offer? A) Black female B) White female C) Black male D) White male Answer: A Page Ref: 98 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5.2 Discussion Questions 1) Assess your own motivational orientation by completing the questions in Exhibit 5-2. Given that a key to self-insight is recognizing the external factors that shape your motivational orientation, what tools do you need to help you become more effective at pie-slicing and pie expansion? Answer: If the student scores high as a cooperative negotiator, the following tools can help keep them balanced in a negotiation: avoid becoming anchored by your reservation price; develop and try to improve your BATNA; get an agent and delegate the negotiation task; tell a third-party about your negotiation; make promises, and report your results; monitor your concessions and rehearse not saying yes to everything that is proposed. If the student scores high as a competitive negotiator, the following tools can help keep them balanced in a negotiation: focus on value creation, not exclusively on value-claiming; ask more questions than you think you should; rely on standards of fairness and objectivity; hire a relationship manager; practice good-faith bargaining; always acknowledge the other party and focus on the long term relationship. Page Ref: 90. AACSB: Interpersonal relations and teamwork Difficulty: Hard

2) What are some of the main differences between cooperatively-motivated groups of negotiators and individualistically-motivated negotiators? Answer: When both negotiators have a cooperative orientation, they can be more effective in terms of maximizing the pie. For example, cooperatively motivated negotiators outperform individualists in terms of pie-expansion. Highly cooperative negotiators use more integrative strategies (such as information exchange), make more proposals for mutual coordination, and use fewer distributive tactics. Moreover, the more cooperatively motivated people present in a negotiation, the more integrative information is exchanged. When individualistically-motivated negotiators are at the table, distributive strategies increase. Cooperators and individualists take different roads to reach win-win outcomes. Individualists use the multiple-offer strategy and indirect information exchange strategy; in contrast, cooperators share information about interests and priorities directly. Page Ref: 88, 90-91. AACSB: Interpersonal relations and teamwork Difficulty: Hard 3) In general, how do women fare in negotiations as compared to men? What factors explain some of these differences? Answer: Across the board, men are more successful that women in terms of pie-slicing and men inevitably get a bigger slice of the negotiation pie. A key determinant of how well men and women do is their opening offer. Opening offers reveal men's and women's aspirations. Women set lower aspirations in their opening offers than do men. Additionally, women are less likely to initiate negotiations than men, and are more likely to avoid negotiation than are men. There are 4 key reasons that act as barriers for women asking for what they want: they don't feel a given situation is negotiable; they think they will be given things when they "deserve" them; they do not establish aggressive goals; and they do not want to damage the relationship with the person with whom they are negotiating. Four strategies can help women attain better outcomes at the negotiation table: address the cognitive, motivational, and paradigmatic barriers that women face with specialized training; women should engage in stereotype regeneration and redefine their own beliefs about themselves; they should strive to remove situational ambiguity; and strive to be accountable and to negotiate on behalf of a constituency. Page Ref: 96, 99-101. AACSB: Interpersonal relations and teamwork Difficulty: Hard

4) Some negotiators may negotiate with a party that has psychopathic personality traits. What are some of the personality traits of a psychopathic personality and what is their general view on how to interact with others? Answer: Psychopathic personality traits include the absence of conscience, remorse or scruples in business settings. Negotiators who have psychopathic personality traits have a more competitive world-view, including more selfish social motivations and the illusion of conflict with others. Types of psychopathic personality traits are narcissism, or the excessive interest in oneself, extreme selfishness, and a craving for admiration. Narcissistic negotiators view their opponents as less competent and less benevolent and are consequently less trusting of their opponents. Page Ref: 87. AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) When negotiators with different motivational styles meet to negotiate, their different motivational orientations converge and often change in response to how they view the counterparty and the situation. In a negotiation between a cooperative and a competitive person, who would be the party most likely to change styles and why? Answer: When negotiators with different motivational styles meet to negotiate, their different motivations converge and often change in response to how they view the counterparty and the situation. In a negotiation between a cooperative and a competitive person, the cooperator is the one to change. The cooperator begins the negotiation in a cooperative fashion, but when they realize that they are facing a competitor, they change their motivational style. People with a competitive orientation behave competitively when paired with a competitive opponent, whereas competitive players do not change. Page Ref: 93. AACSB: Interpersonal relations and teamwork Difficulty: Moderate

6) Why are women less likely to initiate negotiation, often ask for less resources, and settle for lower economic outcomes at the bargaining table? What are common repercussions for a woman who initiates negotiations and advocates for her own interests? Answer: Women are less likely to initiate negotiation, ask for less, and settle for lower economic outcomes at the bargaining table due to fear of the backlash effect. The backlash effect refers to the negative social reaction directed at women who are seen as violating gender norms because they engage in counter-stereotypical behaviors during negotiation. Unfortunately women encounter both social and economic backlash when they behave assertively at the bargaining table. The backlash is most evident when gender stereotypes that prescribe communal, nurturing behavior are activated. When women behave in a stereotypically feminine way, they are judged as more likeable, but less authentic. Women believe that assertive behavior will elicit a negative response from the counterparty and this is not a faulty perception. Women who "ask" are viewed more negatively than men who ask, and evaluators penalize women who ask more than men who ask. Nonassertive, other-advocating women suffer a leadership backlash, and are regarded as less competent because their behavior is regarded to be high-negative feminine and low-positive masculine. Page Ref: 97 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) Whereas women are often the target of backlash in their own negotiations, how do women fare relative to men when they act as third parties in a conflict resolution? Answer: In an investigation of the effectiveness of third-party intervention, women who lacked authority over the disputants (i.e., could not impose an outcome, but could suggest process ideas) were more successful than men in terms of facilitating an outcome that was both acceptable to the disputants and met the larger organizational objectives. Page Ref: 99 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 6 Managing Emotions and Contentious Negotiations 6.1 Multiple-Choice Questions 1) According to the interests-rights-power model of disputing, negotiators who use an interestsbased approach when faced with a dispute situation: A) attempt to reconcile differences in a way that addresses both parties' needs and concerns B) focus on standards of fairness, including legal rights, precedents previously set, or expectations based on norms. C) use threats only in the late stages of negotiation D) never use threats Answer: A Page Ref: 117 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2) When it comes to using power and making threats in negotiation, all of the following are true EXCEPT: A) using power costs more resources than rights-based approaches B) by using power it is easy to create integrative agreements C) a credible threat may restart negotiations D) it often leaves at least one person feeling like a loser Answer: B Page Ref: 124 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Regarding the interests, rights, and power model of disputing, a negotiator who uses an interests-based approach to their argument is characterized by: A) the use of status, rank, threats, and intimidation B) an interest in the counterparty's underlying needs, motivations, desires, concerns and fears C) attempts to understand the past events D) an interest in the unequal distribution of resources as this focus often produces a clear winner and a loser Answer: B Page Ref: 117 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) Regarding the interests, rights and power model of disputing, a negotiator who uses a rightsbased approach to their argument is characterized by: A) addressing the counterparty's most pressing concerns B) applying rank and status biases to the negotiation C) invoking standards of behavior, seniority, or legal rights D) learning about the counterparty's underlying needs Answer: C Page Ref: 117 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) All of the following are effective strategies for negotiators in their attempt to move a rights- or power-based counterparty away from rights/power and back to interests EXCEPT: A) reciprocating rights or power but combining it with interests-based questions B) suggesting a process intervention (e.g. multiple offers) C) building in some cooling-off periods during the negotiation D) maintaining distance and avoiding meeting the counterparty face-to-face Answer: D Page Ref: 121-123 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) With respect to the interests, rights and power model of disputing, a negotiator who uses a power-based approach is characterized by: A) an interest in reconciling differences in a way that addresses the counterparty's most pressing needs and concerns B) a need to apply standards of fairness to negotiation C) an interest in formalizing parties' rights by law or contract D) using status, rank, threats, and intimidation to get their way Answer: D Page Ref: 118 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) Considering how to move the counterparty away from rights and power, one of the most effective methods is a process intervention; one of the least effective interventions is: A) reciprocation B) paraphrasing the other party's statements C) a mixed message approach D) using self-discipline and not using personal attacks Answer: A Page Ref: 122 AACSB: Interpersonal relations and teamwork Difficulty: Easy

8) Sometimes it is necessary to make a threat in negotiation. In order to make an effective threat, a negotiator needs to threaten: A) the other party's credibility B) aggressively C) and intimidate the other party D) the other party's underlying interests Answer: D Page Ref: 125 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) When using a power-based strategy and issuing an effective threat, a best practice is to: A) be ambiguous about what actions are needed by the other party and unclear about the consequences if they choose to not take action B) make the other party believe that you have the ability to carry out the threat C) avoid threatening the other party's interests, but instead attack them personally D) cut off the discussion pathway back to the discussion once your threat is issued Answer: B Page Ref: 125 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Considering the emotions and emotional knowledge that can influence negotiations, what is meant by strategic emotion? A) The behavioral manifestation of felt emotions B) Negative emotions directed at the counterparty C) Carefully designed emotional displays orchestrated to take the counterparty off guard D) Talking about the counterparty behind their back Answer: C Page Ref: 104 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 11) With regard to effective negotiation, the ability of negotiators to understand emotions in themselves and others and to use that understanding to generate positive outcomes is defined as: A) emotional intelligence B) motivational orientation C) social comparison D) reciprocity Answer: A Page Ref: 112 AACSB: Interpersonal relations and teamwork Difficulty: Easy

12) The term that refers to a negotiator's belief in their ability to effectively claim resources and persuade others to make the majority of the concessions in a negotiation is: A) integrative self-efficacy B) distributive self-efficacy C) emotional intelligence D) the halo effect Answer: B Page Ref: 114 AACSB: Interpersonal relations and teamwork Difficulty: Easy 13) Negotiations often involve emotion and knowing how to recognize emotions and effectively manage contentious negotiations can preserve relationships and lead to better outcomes. ________ are relatively fleeting states that are usually fairly intense and are often a result of a particular experience; ________ are usually not directed at someone, are more chronic and often are without a clear formation point. A) Emotion; moods B) Anxieties; fears C) Attitudes; personalities D) Desires; affections Answer: A Page Ref: 103 AACSB: Interpersonal relations and teamwork Difficulty: Easy 14) Angry negotiators induce fear in their opponents and these opponents are more likely to succumb when they are motivated. For this reason, negotiators who ________ toward a negotiator's opening offer are more likely to claim more value. A) act in a calm and indifferent manner B) act cooperatively C) follow a norm of reciprocity D) make a verbal or physical display of emotion Answer: D Page Ref: 104 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

15) It is important to draw a distinction between expressing emotion and feeling emotion. For negotiators seeking to benefit in terms of monetary outcomes and concessions, which of the following emotions is the least beneficial to feign? A) Anger B) Rapport C) Elation D) Liking Answer: C Page Ref: 106 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) The ability to detect faked emotions would seem to be an advantage for negotiators. When can the use of feigned emotion be a disadvantage during negotiations? A) When their counterparty is using feigned emotion as well B) When their counterparty has a low ability to accept inconsistencies in others' behavior C) When the negotiator wants to gain as many concessions as possible D) When the negotiation will only happen once Answer: B Page Ref: 106 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 17) There are a variety of negative emotions that might emerge at the negotiation table, the most common of which is anger. All of the following are important considerations when deciding to use anger as a negotiation tactic, EXCEPT: A) Anger can impair negotiators' goal attainment B) Expressed anger in negotiation often results in less profitable outcomes C) Negotiators who express anger should expect fewer concessions from the counterparty D) Anger is often detrimental for the development of joint gains in negotiation Answer: C Page Ref: 107 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Expressing anger during a negotiation is not uniformly effective in eliciting concessions from an opponent. Anger is most effective with which types of negotiations? A) Mixed-motive involving both cooperation and competition B) Highly cooperative negotiations C) Highly competitive negotiations D) When both parties are angry Answer: A Page Ref: 107 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

19) Anger, power and threats often go together in negotiation, but they have different effects. When negotiators use anger, the effectiveness of that emotion depends on the power of the negotiator. However, displays of which emotion can lead to better outcomes regardless of the perceived power of the negotiator? A) Happiness B) Disgust C) Fear D) Disappointment Answer: D Page Ref: 107 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 20) The value-claiming advantages of expressing anger need to be weighed against the costs of expressing that emotion. When one party believes that the negotiator feigned anger to extract concessions, the other party runs the risk of the ________ or the action-reaction cycle that results in genuine anger and jeopardizes post negotiation deal implementation. A) tragedy of the commons effect B) blowback effect C) winner's curse D) false conflict Answer: B Page Ref: 108 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) The motivations and goals of the negotiator also influence the degree to which they react to the counterparty's display of negative emotion. Negotiators who have ________ are most affected by the counterparty's angry displays and therefore make more concessions. A) an interest in understanding the counterparty B) strong BATNAs C) poor alternatives D) a constituency to whom they answer Answer: C Page Ref: 109 AACSB: Interpersonal relations and teamwork Difficulty: Easy

22) Some negotiators get angry and in response, they take their comments in a personal direction toward the counterparty. When expressing anger, it is recommended that negotiators direct their angry comments at the counterparty's ________ rather than at ________. A) goals; the counterparty's motivations B) behavior; their character as a person C) skill as a negotiator; their business affiliations D) cultural background; loyalty Answer: B Page Ref: 109 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 23) Not all negative emotions have the same consequences or activate the same regions of the brain. Negotiators conceded more when an opponent showed ________ and conceded the least when the opponent showed ________. A) supplication; guilt B) fear; joy C) surprise; benevolence D) envy; pity Answer: A Page Ref: 109 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 24) Negotiators who express ________ may also create joint gains, as the expression of this emotion elicits inferences of submissiveness, thereby making the counterparty believe they can influence the negotiator and paving the way to create more integrative agreements. A) dismissiveness B) naivety C) ambivalence D) smugness Answer: C Page Ref: 110 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Negotiators process information differently when in a positive mood, as opposed to a negative or neutral mood. Negotiators who are in a positive mood do all of the following EXCEPT: A) are more flexible in conveying their thoughts B) engage in more information exchange C) generate more alternatives D) use more contentious negotiation tactics Answer: D Page Ref: 111 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7 Copyright © 2020 Pearson Education, Inc.

26) There are a variety of emotions that can be expressed at the negotiation table ranging from positive, to neutral, and negative. What type of emotional display by a negotiator tends to achieve the most profitable outcomes for themselves in a negotiation? A) a person of emotional inconsistency B) a person of calm, emotional predictability C) a person acting in a steady state of anger D) a person who is perceived as extremely happy Answer: A Page Ref: 112 AACSB: Interpersonal relations and teamwork Difficulty: Easy 27) Emotional intelligence is the ability of negotiators to understand emotions in themselves and others and to use emotional knowledge to lead to positive outcomes. In the changing demands of a negotiation, a negotiator needs to master two different aspects of emotional intelligence, ________ and ________, in order to achieve the best possible outcomes. A) happiness; intentionality B) conflict adaptivity; resilience C) dominance; autonomy D) fairness; politeness Answer: B Page Ref: 113 AACSB: Interpersonal relations and teamwork Difficulty: Hard 28) Negotiators should self-monitor their displays of emotions at the bargaining table. For example, which of these statements made by a negotiator following the conclusion of their negotiation would be viewed the most favorably by the counterparty? A) "I really didn't do that well." B) "I really feel good—I got everything I wanted!" C) "I knew I'd make out just fine—you didn't seem to do as well." D) "What will your boss think of our agreement?" Answer: A Page Ref: 114 AACSB: Interpersonal relations and teamwork Difficulty: Easy

29) Disputes are negotiations in which one party has made a claim and the other party has rejected that claim. Disputes differ from transactional negotiations in two ways—first negotiators often come to the table feeling angry and misunderstood, and second: A) the parties cannot settle their dispute unless they reveal their respective BATNAs to each other B) the only way a mutual agreement can be settled upon by both parties is by use of contentious behavior C) disputes can only be settled by use of a neutral third party D) if the parties cannot reach an agreement, they cannot simply walk away from the negotiation table and exercise their respective BATNAs Answer: D Page Ref: 116 AACSB: Interpersonal relations and teamwork Difficulty: Hard 30) Power tactics have the intent to coerce the counterparty to settle on terms more satisfactory to the wielder of power. There are two types of power-based approaches: threats and: A) bullying B) social pressure C) contests D) adherence to norms and standards Answer: C Page Ref: 119 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

31) In a job interview, suppose the following statement is made by an employer regarding the topic of compensation: "I am afraid I cannot meet your desired salary requirements, but I hope you will realize that working in our company is a wonderful opportunity and join us." Which of the following is an interests-based response to the employer's statement? A) "I am very interested in joining your company if certain needs of mine can be met. I would like to share some of my key goals and objectives. Salary is a key concern for me. I am the sole wage earner in my family, and I have a number of educational loans. You did not mention other aspects of the offer, such as stock options, vacation, and flex time. Can we discuss these issues at this point?" B) "I am very interested in joining your company if we can come up with a fair employment package. My salary requirements are in line with those of other people joining similar companies. I would think it would be a competitive advantage for your company to offer employment packages that are competitive with those offered by other companies. I believe that my record and previous experience mean a higher salary is fair in this case." C) "I am very interested in joining your company, but other companies are offering me more attractive deals at this point. I would like to invite you to reconsider the offer so that I do not have to resort to turning your offer down, given that I think that we make a good match for one another." D) "I am sorry you cannot meet my salary requirements. I've seen your company's stock price and I'm not sure what your directors are doing with all your profits, but it seems it certainly isn't trickling down to your employees." Answer: A Page Ref: 119 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 32) Suppose you enter a negotiation with an interests-based approach, but the counterparty uses a rights or power-based approach. Which of the following is a good strategy to use when attempting to exit a dispute escalation cycle? A) Focus the counterparty on rights which are easier to combat with legal threats B) Conduct the negotiation with an electronic buffer rather than face-to-face C) Don't send mixed messages—switch to the same approach as the counterparty and be consistent about your responses D) Don't react to the other party's rights or power-based behavior and don't offer a concession right after the counterparty has misused rights or power Answer: D Page Ref: 122 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

33) A type of contentious negotiation that elicits strong negative emotions is a ________ dilemma, where negotiators are faced with a choice to cooperate or compete with a counterparty. A) social B) power C) moral D) orthogonal Answer: A Page Ref: 126 AACSB: Interpersonal relations and teamwork Difficulty: Easy 34) Social dilemmas in negotiations are a paradox. When each person pursues the course of action that is most rational from their point of view, the result is: A) a win-win outcome B) a lose-lose outcome C) an impasse D) a win-lose outcome Answer: B Page Ref: 127 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 35) People's behavior in social dilemmas is highly consistent across time and situations. One behavioral strategy for people involved in social dilemmas is a method that gets negotiators to work pro-socially, initially, and then do exactly what the counterparty does in each subsequent interaction. This behavioral strategy is best termed: A) paraphrasing B) logrolling C) tit for tat D) prisoner's dilemma Answer: C Page Ref: 128 AACSB: Interpersonal relations and teamwork Difficulty: Easy 36) Legal contracts involve formal paperwork and are binding. In contrast, ________ are NOT binding in a court of law, but create psychological pressure to commit. A) endowment effects B) psychological contracts C) mixed messages D) emotional contagions Answer: B Page Ref: 129 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

37) People are more likely to cooperate when they promise to cooperate. Although such promises are nonbinding, people nevertheless act as if they are binding. The reason for this behavior is that people feel psychologically committed to honor their word, also known as: A) tunnel vision B) unwarranted causation C) perseverance effect D) the norm of commitment Answer: D Page Ref: 130 AACSB: Interpersonal relations and teamwork Difficulty: Easy 38) Task-related communication promotes greater cooperation by activating interpersonal norms related to fairness and trust. Two reasons explain this increase in cooperation. First, communication enhances group identity and solidarity. Second, communication allows group members to: A) establish in-group power and status B) allows people on the team to establish themselves as individuals and stand out from the group C) make public commitments to cooperate D) address disputes with the counterparty and make threats Answer: C Page Ref: 129 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 39) Negotiators often struggle in their attempt to transform a rights- or power-based argument into an interests-based discussion because people are often so emotionally invested in the dispute that they cannot listen. Which of the following is an effective technique that can help negotiators listen and refocus back on interests? A) paraphrase what you have heard the counterparty mention as their underlying needs B) clarify your threats C) keep everyone at the table and the conversation going while emotions are high and people are being candid D) threaten the other party's interests Answer: A Page Ref: 123 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

40) Regarding value creation, it is advised that negotiators put the focus on interests early in the negotiation in the effort to achieve a win-win outcome. However, this suggestion raises an obvious question: if interests are so effective, why doesn't everyone use them? All of the following are reasons why parties might not use interests in a negotiation, EXCEPT: A) lack of skill B) strong cultural or organizational norms C) equal shares bias D) tendency to reciprocate rights and power Answer: C Page Ref: 21 AACSB: Interpersonal relations and teamwork Difficulty: Easy 6.2 Discussion Questions 1) What are some effective strategies for managing negative emotions at the bargaining table? Answer: Some of the best techniques related to managing negative behaviors at the negotiation table are: negotiators should self-monitor and resist the urge to gloat following negotiations, do not acquiesce to negative behavior as it only reinforces the behavior, self-regulate rather than suppress emotions, convey positive emotions because emotions are contagious, and understand and avoid emotional word triggers. Page Ref: 114-115 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Assess your own emotional style by completing the questionnaire in Exhibit 6-2. What are the advantages and disadvantages of each emotional style? Answer: The pros and cons of using a positive negotiating style: negotiators process information differently when working out of a positive mood, and these positive moods can facilitate creative thinking. Negotiators with a positive negotiating style use more cooperative strategies, engage in more information exchange, generate more alternatives, and use fewer contentious tactics than do negative-style negotiators. Negotiators who experience positive emotions see relationships among ideas and link together non-typical ideas. This response builds rapport, which in turn helps to avoid impasse and facilitates the negotiation process. However, positive-style negotiators must watch their emotions and their desire for harmony to avoid the trap of being too cooperative in their negotiation style. The pros and cons of using a negative negotiating style: negotiators who are strategically angry are more likely to gain concessions from their opponent because the counterparty will assume the angry person is close to their reservation point. Angry negotiators induce fear in their opponents, and their opponents are more likely to succumb when they are motivated. However, negotiators who show true anger, rather than strategic anger in negotiation, feel little compassion for the counterparty and are less effective in terms of expanding the pie than are happy, positive negotiators. Page Ref: 107-112 AACSB: Interpersonal relations and teamwork Difficulty: Hard

3) What are some personal strategies a negotiator can use to move the counterparty away from rights- and power-based arguments to an interest-based focus? Answer: Some personal strategies a negotiator can use to move the counterparty away from rights and power-based arguments to an interest-based focus are as follows: Resist the urge to reciprocate. By not reciprocating, you refocus your opponent. Getting parties together for informal discussions can move them toward interests. Make sure that you stay focused on the conflict and the issues and don't use personal attacks. Make sure that you are not rewarding the other party's rights or power-based behavior. One effective strategy is to reciprocate rights or power, but combine it with interests-based questions or proposals. The use of process interventions that are interests-based which can include any of the pie-expanding strategies (ex: multiple offers, revealing information about priorities) as well as dispute resolution strategies. Another strategy is to agree to talk and listen to each other for 20 minutes and then argue. The use of built-in cooling off periods can allow parties to better assess their own needs and interests, independent of rights and power issues. Make it a rule that you can't make your point until you restate the other person' point to his or her satisfaction. Recognizing and labeling a power or rights based tactic as ineffective can neutralize or refocus negotiations. Page Ref: 121-124 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) In most negotiation situations, negotiators try to entice or force each other to cooperate. However, in many situations, it is illegal for parties to cooperate. In these types of situations where parties should not privately collude, what principles can a negotiator use to encourage legal cooperation? Answer: The following principles encourage cooperation in social dilemmas when companies should not privately collude: First, by keeping your strategy simple, the easier it is for your competitors to predict your behavior. Second, a person in a group who shows unwavering, consistent cooperation can effectively catalyze cooperation in the group. Third, do not be the first to defect. Fourth, social dilemmas trigger competitive motives to "beat" the other party. Instead, focus on your profits, not your payoffs relative to others. Finally, most people view their own behavior as more cooperative than that of others. When planning your strategy, consider the fact that your competitors will see you less favorably than you perceive yourself. Page Ref: 132 AACSB: Interpersonal relations and teamwork Difficulty: Hard 5) It has been documented that in negotiations, sympathy appeals can improve negotiators' performance more than rational appeals. What types of sympathy expressions are most effective, and how do displays of sadness affect the counterparty's willingness to elicit concessions? Answer: Counterparties tended to concede more to sad negotiators when the sadness seemed socially appropriate, such as sadness expressions from low power negotiators, those negotiators who anticipated interacting with the counterparty in the future, and of those negotiators who viewed the relationship as collaborative. Expressing sadness can also be effective in eliciting concessions especially if a negotiator associates moral significance to the object of negotiation. Page Ref: 110 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14 Copyright © 2020 Pearson Education, Inc.

6) Emotional intelligence is the ability to effectively manage one's own emotions and respond to other's emotions. What can happen when a negotiator responds to a counterparty's negative emotions by making concessions in the hopes of escaping or avoiding the counterparty's negative behavior? Answer: People often make concessions to another person just to shut them up. What they may not realize that this response reinforces the very behavior they are trying to extinguish. Negative reinforcement explains the increased likelihood of behavior that eliminates or removes an aversive stimulus. Unfortunately, if someone acts irrationally and you acquiesce, you increase the likelihood of that person engaging in negative behavior in the future. Page Ref: 115 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) Rights and power procedures are often used when they are not necessary; a procedure that should be the last resort too often becomes the first move. However, rights and power-based approaches may be appropriate to use in specific situations; describe these special situations where the usage of rights and power is appropriate. Answer: Resolving all disputes by reconciling interests is neither possible nor desirable. However there are situations in which the usage of rights or power can be helpful: 1.) if the other party refuses to come to the negotiation table, 2.) negotiations have broken down and parties are at an impasse, 3.) the other party needs to know you have power, 4.) someone violates a rule or breaks the law, 5.) interests are so opposed that agreement is not possible, and 5.) negotiators are committed to an agreement and parties are positioning themselves in the bargaining zone. Page Ref: 124-125 AACSB: Interpersonal relations and teamwork Difficulty: Hard 8) When negotiations break down, it is important to have a path back to an interests-based discussion. Why are threats expensive and how do they affect the user's "face" in a negotiation? Answer: It is important to have an escape hatch to a threat made during the course of negotiations. Threats in negotiation are "expensive" to the negotiator's power and influence. To release a party from the expense of carrying out their threat, the other party must provide a way for the counterparty to save face and reopen negotiations, otherwise the threatening party must carry out the threat. Furthermore, after a party uses their threat, they lose their power and their ability to influence. Page Ref: 126 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

9) Social dilemmas exist because it is always better for negotiators to act in a self-serving fashion if they want to maximize their own economic outcomes. Social dilemmas differ in four key ways from traditional negotiations; describe these differences. Answer: Social dilemmas differ in four key ways from traditional negotiations. First, in traditional negotiations, parties work with explicit contracts; in social dilemmas, there are usually no formal contracts. Second, in traditional negotiations, people know what they are getting before they agree; in social dilemmas, people don't know what they will get until other acts, thus there is uncertainty. Third, in traditional negotiations, people come to the table voluntarily; in social dilemmas, people are often pulled into negotiations without their consent. Finally, in traditional negotiations, parties negotiate via proposals and can explain and justify their offers; conversely, in social dilemmas, people negotiate through their behaviors and actions. Page Ref: 126 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Many business situations can be thought of as dilemmas where people are tempted to gain the upper hand and the resulting conflict pushes negotiators away from finding win-win outcomes. What are some strategies that can help negotiators induce trust and cooperation in social dilemmas? Answer: The following strategies can induce trust and cooperation in social dilemmas: 1.) task related communication—when people are allowed to communicate with the members of the opposing group prior to making their choices, cooperation increases dramatically, 2.) build in a verbal commitment stage to the conversation—when people make verbal confirmations of their intentions, it acts as a tacit message that signals the parties' willingness to cooperate, 3.) the use of psychological contracts, commonly known as "handshake deals", are not binding in a court of law, but create psychological pressure to commit to an action, 4.) when the negotiation is framed in terms of a relationship versus just an economic transaction, 5.) to the extent that others can be personalized, people are more motivated to cooperate with a person, rather than negotiate with an impersonal company or organization, 6.) finally, focusing on how a certain choice can return a desirable outcome greatly increases cooperation. Page Ref: 128-131 AACSB: Interpersonal relations and teamwork Difficulty: Hard

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 7 Establishing Trust and Building Relationships 7.1 Multiple-Choice Questions 1) The resources that people exchange in a relationship vary in its terms of ________, or how much utility we derive from who is providing the resource, and ________, or the resource's tangibility. A) identity; scarcity B) particularism; concreteness C) social status; reciprocity D) fairness; similarity Answer: B Page Ref: 135 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) People form three major types of trust relationships with others. One of those trust types is deterrence-based trust and it is based on: A) reverse psychology B) consistency of behavior C) loss-frame thinking D) emotional connection Answer: B Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Easy 3) With regard to the three different types of trust that negotiators can form in their relationships with a counterparty, identification-based trust results from: A) seeing another person as a bad role model B) trusting that the counterparty will stand behind their issued threats C) reciprocating another party's behavior D) having complete empathy with another party Answer: D Page Ref: 140 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) Negotiators often develop trusting, long-term relationships with people who are physically close to them, or located nearby. This effect is known as the: A) reactance theory B) halo effect C) propinquity effect D) networking game Answer: C Page Ref: 144 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) All of the following are effective strategies for transforming personal conflict into task conflict, EXCEPT: A) focusing on the future B) concealing anger and frustration C) finding a common node in parties' social networks D) joining forces to compete against a common enemy Answer: B Page Ref: 141-143 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) With regard to successfully repairing broken trust in negotiations, which of the following is most TRUE? A) People who believe that moral character can change over time are less likely to trust someone after an apology B) Repairing broken trust is more difficult with individuals than with groups C) Allowing the injured parties to express their regret and apologize D) Avoid involving a professional third party Answer: C Page Ref: 149 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7) When negotiating with friends, it is important to recognize that many friendships are built on communal norms. People in communal relationships: A) keep track of who has invested what in a relationship, and compensate each friend based on their inputs B) respond to each other's needs without keeping track of who has put in what C) do not reciprocate resource sharing with in-group members D) always ignore the use of rights or power Answer: B Page Ref: 154 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2 Copyright © 2020 Pearson Education, Inc.

8) In contrast to negotiating with friends who allocate resources based on communal norms, businesspeople are much more likely to use: A) self-organizing arrangements B) compromise agreements C) affective routes D) exchange norms Answer: D Page Ref: 154 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) When a person's personal life is intermingled with their business life, the relationship is more complex and is known as: A) an embedded relationship B) schmoozing C) a swift trust relationship D) a cognitive conflict relationship Answer: A Page Ref: 150 AACSB: Interpersonal relations and teamwork Difficulty: Easy 10) There are problems with deterrence-based trust systems. Often a consequence of a deterrence system is the reactance theory which is the tendency for people to: A) be angry that their freedom has been taken away and act to reassert it B) make more rules to restrict behavior further C) feel more secure but have less intrinsic motivation D) watch each other very closely and report any policy infractions Answer: A Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 11) The Subjective Value Inventory is a survey that assesses the four major concerns held by negotiators: feelings about their instrumental outcomes, feelings about themselves, feelings about the negotiation process, and: A) feelings about their relationships B) feelings about their finances C) feelings about their material goods D) feelings about personal feedback Answer: A Page Ref: 135 AACSB: Interpersonal relations and teamwork Difficulty: Easy

12) There are two key problems with deterrence-based trust systems. First, they can backfire, and second: A) insufficient information about punishments in this trust system can make people less interested in rebelling B) high levels of trust between managers and employees thrive in this trust system C) this system decreases dependence and commitment among parties D) they are expensive to develop and maintain Answer: D Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) People often have a negative reaction when they perceive that someone is controlling their behavior or limiting their freedom. When people think their behavior is controlled by extrinsic motivators: A) they are less likely to comply with demands B) their intrinsic motivation may be reduced C) they are less likely to engage in risky behaviors D) dependence and commitment among parties increases Answer: B Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Hard 14) Knowledge-based trust is grounded in behavioral predictability and it occurs when a person has enough information about others to understand them and accurately predict their behavior. Whenever informational uncertainty or asymmetry characterizes a relationship, it provides an opportunity for deceit, and one or both negotiators risk: A) judgment by other parties B) being corrupted C) exploitation D) damaging their reputations Answer: C Page Ref: 139 AACSB: Interpersonal relations and teamwork Difficulty: Easy

15) Of the three types of trust systems that can be formed in relationships, knowledge-based trust systems: A) are fueled by extrinsic motivators B) are expensive to develop and maintain C) are grounded in complete empathy with another person's desires and intentions D) increase dependence and commitment among parties Answer: D Page Ref: 140 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) Regarding the types of conflict that can occur in relationships, ________ is a depersonalized form of conflict, consisting of the argumentation about the merits of ideas, plans, and projects, independent of the identity of the people involved. A) personal conflict B) task conflict C) the lose-lose effect D) illusory conflict Answer: B Page Ref: 141 AACSB: Interpersonal relations and teamwork Difficulty: Easy 17) The ________ route to building trust is based on rational and deliberate thought and consideration; ________ trust is based on intuition and emotion. A) business; personal B) cognitive; affective C) casual; intimate D) long term ; short term Answer: B Page Ref: 141 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Considering the psychological mechanisms for building trust between negotiators, which of the following situations best illustrates the similarity-attraction effect? A) A sales trainee wears shorts to the office, but the boss wears a suit B) Marchers in a political demonstration dress in all black C) A man strikes up a conversation with an older gentleman reading the same book as he is D) A manager sits very broadly with legs apart, leaning way back in his chair while the junior manager sits with his ankles crossed, body perched on the edge of his seat, taking up as small a space as possible. Answer: C Page Ref: 144 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5 Copyright © 2020 Pearson Education, Inc.

19) Of the different psychological methods that negotiators can employ to build trust with the counterparty, the use of which principle can make a counterparty feel obligated to return in kind what the negotiator has offered or given to them? A) The propinquity effect B) Functional distance C) The reciprocity principle D) The mere-exposure effect Answer: C Page Ref: 145 AACSB: Interpersonal relations and teamwork Difficulty: Easy 20) Negative emotions don't always negatively affect outcomes. Which of the following negative states can foster the development of integrative outcomes in negotiation because it can drive a search for information? A) Anger B) Suspicion C) Depression D) Greed Answer: B Page Ref: 148 AACSB: Interpersonal relations and teamwork Difficulty: Easy 21) Negotiators often make dispositional, as opposed to situational, attributions for the questionable behavior of the counterparty which can threaten trust. Which of the following can be characterized as a dispositional attribution for a negotiator's late arrival to a meeting? A) Traffic jam B) Lost keys C) Tired due to late night D) Arrogance Answer: D Page Ref: 148 AACSB: Interpersonal relations and teamwork Difficulty: Easy

22) Which of the following should be one of the first steps a negotiator should take to effectively repair broken trust? A) Discuss who was right and who was wrong B) Arrange a personal meeting and let the counterparty vent C) Immediately apologize D) Defend the reasoning behind your actions Answer: B Page Ref: 151-153 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 23) In regard to reestablishing trust, a negotiator's ability to ________ is directly related to how satisfied the other party feels, independent of the monetary value of the outcome. A) defend their position B) find reasons for failure C) understand emotion D) think critically Answer: C Page Ref: 152 AACSB: Interpersonal relations and teamwork Difficulty: Easy 24) Some negotiation relationships are purely business-related; others are entirely personal. Some are a mix of business and personal relationships. These embedded, multiplex relationships would seem to have several advantages, the most important of which is: A) expediting business exchanges because of an established deterrence-based trust system B) a close network of redundant social and business ties C) the lack of a buffer zone between business and personal exchanges D) facilitating the nature of business exchange by initiating self-organizing governance arrangements that operate through expectations of trust and reciprocity Answer: D Page Ref: 158 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Successful negotiation is often equated with the maximization of monetary wealth, but it also involves building and maintaining effective relationships. Skilled negotiators realize that respect, liking, and ________ are as important as maximizing monetary return. A) trust B) status C) persuasion D) self-evaluation Answer: A Page Ref: 134 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7 Copyright © 2020 Pearson Education, Inc.

26) People in negotiations are not simply concerned only with the exchange of economic value, but also other factors. ________, refers to the perceived quality of negotiation that cannot be easily measured in economic terms. A) Particularism B) Concreteness C) Subjective value D) Social comparison Answer: C Page Ref: 135 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 27) Rapport refers to feelings of closeness, understanding, and harmony among people in relationships. In negotiation, the creation of rapport is primarily influenced by the counterparty's ________, as well as the interaction behaviors of both negotiators. A) economic resources B) rank and status C) BATNA D) verbal behavior Answer: D Page Ref: 135 AACSB: Interpersonal relations and teamwork Difficulty: Easy 28) Trust is the willingness in a negotiation to make oneself vulnerable to another person. Specifically, trust has a ________ relationship when it comes to integrative negotiation behavior; integrative behaviors have a ________ relationship with the trustor's outcome. A) negative; positive B) negative; negative C) positive; negative D) positive; positive Answer: C Page Ref: 137 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

29) Of the three types of trust relationships that people form with others, the consequences of inconsistent behavior or broken promises regarding ________-based trust systems are punishments, sanctions, and legal implications. A) deterrence B) knowledge C) reactance D) identification Answer: A Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Easy 30) Two basic types of conflict occur in most relationships. ________ conflict often can enhance relationships, and can be effective in stimulating the creativity necessary for integrative agreements because it forces people to rethink problems and arrive at outcomes that everyone can accept. A) Emotional B) Relationship C) Cognitive D) Feedback Answer: C Page Ref: 141 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 31) Negotiators who do not know each other may attempt to build a more trusting relationship by trying to find a common node in their social networks. ________-based trust is high among people who are embedded densely in their networks and among those who provide social support; ________-based trust is higher in those with whom people engage in instrumental exchanges. A) cognitive; affect B) partnership; cost-benefit C) integrative; competitive D) emotion; task Answer: D Page Ref: 143 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

32) The more we are exposed to something—a person, object, or idea—the more we like it. This ________ effect is extremely powerful and occurs below the level of our awareness. A) propinquity B) mere exposure C) halo D) functional distance Answer: B Page Ref: 144 AACSB: Interpersonal relations and teamwork Difficulty: Easy 33) Certain aspects of architectural design make it more likely that some people will come into contact with each other more often than with others, even though the physical distance between them might be the same—this effect, known as ________, also explains why people form more friendships with people in their immediate area rather than those people with offices on the same floor but located down the hallway. A) reciprocity principle B) functional distance C) similarity-attraction effect D) common enemy effect Answer: B Page Ref: 145 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 34) Regarding a negotiator's propensity for distrust, negotiators differ in terms of their need for closure or how certain they want and expect the world to be. Negotiators who have a greater need for closure do all of the following, EXCEPT: A) develop more polarized judgments about others B) have high trust in close others and low trust in distant others C) always want an equitable split of resources with the counterparty D) don't revise their levels of trust even when receiving feedback about the counterparty's actual trustworthiness Answer: C Page Ref: 148 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

35) Trust propensity refers to a negotiator's belief in others' trustworthiness. Higher levels of trust propensity in a negotiator can affect a negotiation in all of the following ways, EXCEPT: A) increased development of trust amongst negotiators B) increased information exchange about interests amongst negotiators C) decreased substantiation and argumentation amongst negotiators D) increased use of single-issue offers amongst negotiators Answer: D Page Ref: 138 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 36) Short conversations by the office coffee machine, small talk in the elevator, and chance conversations over wine at a reception all can have the cumulative effect of building trust amongst parties. These small social exchanges are commonly termed ________, and can have a dramatic impact on our liking and trust of others. A) sticky ties B) schmoozing C) venting D) posturing Answer: B Page Ref: 146 AACSB: Interpersonal relations and teamwork Difficulty: Easy 37) Negotiations with friends can be challenging as interpersonal relationships can influence negotiators' expectations as they tend to expect more from those who are close to them. When it comes to dividing resources, friends use the ________ standard; whereas strangers and business associates use the ________ standard. A) equality-based; merit-based B) market-based; sunk-cost C) bargaining zone; anchoring D) commitment; bridging Answer: A Page Ref: 156 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

38) Many new business relationships require that strangers come together and produce a product or service, or carry out some task and then immediately disband, perhaps never to see one another again. In contrast, our personal relationships are longer term; we have a past history with family and friends, and we expect to have future interactions with them. Business situations increasingly require ________, which is necessary among people who have a finite life span in a temporary system. A) verification B) swift trust C) risk-aversion D) perspective taking Answer: B Page Ref: 158 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 39) Because most people are reluctant to turn to new, untried partners for information, resources, and the variety of interactions that are required in new organizations, embedded relationships often suffer from a myopic view of reality. If people within the embedded network are biased in their perceptions and not connected to others who may have better information but instead stay in relationships emanating from ingrained habits of past social interactions, these relationships are best termed: A) dispositional ties B) tunnel vision ties C) common-bond groups D) sticky ties Answer: D Page Ref: 159 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

7.2 Discussion Questions 1) What are some of the reasons that people are uncomfortable negotiating with friends? Outline the advantages and disadvantages of negotiating with friends. Answer: The reason for following the motto "friends should not do business" is defined by the fact that we should take care of people we love, respond to their needs, and not "keep track" of who has contributed to what, but in negotiation we are trying to maximize our own interests. Advantages: Friends are less competitive, exchange more information, make more concessions, make fewer demands, and are more generous with one another. Disadvantages: Friends are too willing to compromise or to engage in the firm flexibility maxim that is often required. When friends compromise quickly because they want to avoid conflict and minimize the threat of impasse, they are likely to leave value on the table. The need for friends to maintain the illusion of agreement means that important differences in preferences, interests, and beliefs are often downplayed or buried. Page Ref: 153-156 AACSB: Interpersonal relations and teamwork Difficulty: Hard 2) What are some of the advantages and disadvantages of negotiations between businesspeople and how do they differ from purely personal negotiations? Answer: In contrast to friendship negotiation, businesspeople are much more likely to use an exchange norm by which everything is reduced to a single metric allowing for comparison. Advantages: Businesses are generally organized around rank and status, but being in a hierarchical relationship may help to expand the pie. Disadvantages: We like our friends, but we do not necessarily like the people with whom we do business and negotiate. Levels of cooperation decrease as social distance increases and when reaching agreement is important, negotiators who have a relationship are more likely to reach a win-win agreement. Page Ref: 156-157 AACSB: Interpersonal relations and teamwork Difficulty: Hard 3) What are some of the psychological strategies for building trust in a relationship? Answer: Some of the psychological mechanisms for building trust are: taking advantage of the similarity-attraction effect and the mere exposure effect, increasing one's physical presence to the other party, using the reciprocity principle to your advantage, schmoozing, flattering the other party, mimicking and mirroring the other party, and the self-affirmation technique. Page Ref: 144-147 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) Why is power or status significant when interpreting ambiguous and/or slightly negative situations between high- and low-power people? Answer: The power or status differential between people is significant when interpreting ambiguous and negative social interactions between high and low power individuals because the low-power person is susceptible to paranoia. The high-power person who does not receive an acknowledgement from a colleague assigns a situational attribution to the interaction by interpreting that person as having a busy day or not even being aware of the other person. In contrast, the low-power person reacts to this lack of acknowledgment by becoming upset, and assigning a negative dispositional attribution like arrogance, or passive-aggressive punishment to the high-power person. Page Ref: 148 AACSB: Interpersonal relations and teamwork Difficulty: Hard 5) Once a breach of trust has happened, the effected parties may still need to have relationship, and to move forward, one party may need to take steps toward repairing the broken trust, starting with an apology. What are some recommendations for how to best state an apology so that it has the best effect on the counterparty? Answer: When apologizing, resist the urge to immediately blurt out an apology. Apologies offered later in a conflict are more impactful and effective than those offered immediately. If you are at fault, then admit it. If you are not at fault, then apologize in a way that takes ownership for your actions or behavior, yet does not necessarily accept the party's version of what happened. For example, a target might tell a party, "I am very sorry that I did not consult you before preparing the report." By saying this, the target does not agree with the party's accusation that the violator attempted to take more credit for the report, rather the target only identifies the action as being hurtful for the victim. Page Ref: 151 AACSB: Interpersonal relations and teamwork Difficulty: Hard

6) When a negotiator has negative emotional baggage from past negotiations, it can affect their ability to move forward in a positive way in future negotiations. How can negotiators' previous experiences or bargaining history with one another influence how the parties behave in future negotiations with one another? Answer: Negotiators' previous experience or history with one another can strongly influence how they behave in the future as social psychological outcomes from prior negotiations can predict economic performance in subsequent negotiations. One party's feelings about prior negotiations not only affect subsequent negotiations with that counterparty, they can also affect subsequent negotiations with different counterparties, due to spillover effects. In some situations, negotiators have an asymmetrical history, such that one party, in a previous negotiation, benefitted at the expense of another. This asymmetrical history is often characterized by conflicting interpretations of their history which can increase the likelihood of an impasse. Furthermore, negotiators stuck in an impasse find themselves getting caught in "distributive spirals" in which they interpret their performance as unsuccessful, experience negative emotions, and develop negative perceptions of their negotiation counterparty and the entire negotiation process. Moreover, negotiators who reach an impasse in a prior negotiation are more likely to do the same in their next negotiation or to reach low-value deals compared to negotiators who were successful in reaching agreement. Page Ref: 137, 150-151 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) Knowledge-based trust is grounded in behavioral predictability. In markets characterized by information asymmetries and unpredictability, how can the development of knowledge-based trust systems help each party, especially in extended negotiation relationships? Answer: Knowledge-based trust is grounded in behavior predictability and it occurs when a person has enough information about others to understand them and accurately predict their behavior. Whenever informational uncertainty or asymmetry characterize a relationship, it provides opportunities for deceit, and one or both parties risk exploitation. However, in some markets, negotiators have abandoned the anonymous exchange of resources in favor of long-term exchange relationships between certain buyers and sellers. Within this exchange framework, negotiators establish and protect their reputations for trustworthiness. Knowledge-based trust increases dependence and commitment among parties. For example, suppliers who regularly negotiate with certain customers develop highly specialized products for those customers and such product customization can create barriers to changing to a new supplier relationship. In addition to economic dependence, people become emotionally committed to certain relationships and once negotiators develop a relationship with someone they find to be trustworthy, they are inclined to remain committed to the relationship, even when it could be profitable to trade with others. Page Ref: 139-140 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

8) What is flattery, how does it affect trust in negotiation relationships, and how can flattery be used strategically in negotiations? Answer: Flattery is the showing or expressing gratifying respect or admiration to another person. People like others who appreciate and admire them. People are more likely to trust others who like them and to respond more favorably when they are flattered. The most strategic type of flattery, in terms of advancing one's own interests, is to flatter another person on a personally important dimension about which he or she feels somewhat insecure. Page Ref: 147 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) In a team or group, one person may have a reputation for being less trustworthy, tougher, or less easy to work with than other members of the group. How can the reputation of this person, also sometimes called the "bad apple" of a group, affect negotiation outcomes? Answer: In negotiation situations where there is one person with a reputation for being a "bad apple" for either being untrustworthy, tough, or less easy to work with, the counterparty is significantly less likely to trust the group as a whole than any individual in the group. It seems the reputation of a "bad apple" in the group can have negative spillover effects upon the entire group's trustworthiness. Page Ref: 149 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 8 Power, Ethics, and Reputation 8.1 Multiple-Choice Questions 1) When it comes to how to best leverage your BATNA in a negotiation, all the following strategies are effective, EXCEPT: A) keep your options open and continue to attempt to improve your existing BATNA B) slowly increase the value of your BATNA during the negotiation so as to display firm resolve to the other party C) signal to the other party that you have attractive options, without revealing the exact value of the BATNA D) do as much research as possible to assess the other party's BATNA Answer: B Page Ref: 163 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) With regard to lying about one's BATNA in negotiation, which of the following is advisable? A) Lying about one's BATNA is only advisable if the negotiator is prepared to have the other party walk away from the table B) Lying about one's BATNA is sometimes permissible, but lying about one's reservation price is never permissible C) Lies about BATNAs are not permissible, but lying about the other party's BATNA is strategically advisable D) Lies about BATNAs are equivalent to lying about material facts, and therefore, the lying party is at legal risk Answer: D Page Ref: 171 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Given that negotiators' judgments of ethical behavior are often biased, what is the "front-page test" and how might it help negotiators make ethical decisions in a negotiation? A) The front page test asks negotiators how comfortable they would be if their behavior was revealed in full in a public format B) The front page test asks negotiators to hold their decisions up against the Golden Rule of "Do unto others as you would have them do unto you" C) The front page test asks negotiators if they would advise others, or their child, to make the same decision D) The front page test asks negotiators to consult a third party for an unbiased view of their decision making rationale Answer: A Page Ref: 177 AACSB: Interpersonal relations and teamwork Difficulty: Easy 1 Copyright © 2020 Pearson Education, Inc.

4) Several disadvantages are associated with lying in negotiation which include all of the following, EXCEPT: A) personal reputation and trustworthiness is damaged B) the liar can be caught and face criminal charges C) increased risk of a bidding war D) cultural cost in terms of people being suspicious about others within the organization Answer: C Page Ref: 173 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) Two types of status are relevant in most negotiation situations: Primary status characteristics refer to ________; Secondary (pseudo) status characteristics refer to ________. A) factors that are not real indicators of authority, such as age, gender and race; legitimate authority B) legitimate authority; factors that are not real indicators of authority, such as age, gender, and race C) age-based authority; race-based authority D) the CEO or president; the person or persons who report to him/her Answer: B Page Ref: 166 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) If the counterparty does not believe you actually have a BATNA, and you allude to options you do not actually have, this would be considered: A) perceived power B) power tactics C) misrepresentation D) reciprocity Answer: C Page Ref: 163 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7) Two types of status are relevant in most negotiation situations: primary status characteristics and secondary status characteristics. Which of the following is an example of a primary status characteristic? A) Gender B) Cultural background C) Age D) Job title Answer: D Page Ref: 166 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2 Copyright © 2020 Pearson Education, Inc.

8) Secondary status characteristics, also referred to as pseudostatus characteristics, are less powerful that primary status characteristics but still exert a powerful influence on behavior. Which of the following is an example of a secondary status characteristic in negotiation? A) A person's rank within an organization B) The number of supervisees in a person's unit C) A person's cultural background D) A person's title Answer: C Page Ref: 166 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) With regard to how power and status affect people's perceptions in negotiation, high status people, regardless of their actual power, are perceived ________, but high-power, low-status individuals are judged ________. A) as negative, dominant, cold; as positive, dominant, warm B) to lie less frequently; to lie more frequently C) as positive, dominant, warm; as negative, dominant, cold D) to lie more frequently; to lie less frequently Answer: C Page Ref: 165 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Why is it important to be wary of our ethical behavior during a negotiation? A) People fail to consider other people' interests and welfare B) Given the opportunity, people will choose profit over ethics C) Negotiators tend to enjoy lying D) People may believe they are behaving ethically, but their self-serving tendencies interfere with good decision-making Answer: D Page Ref: 167 AACSB: Interpersonal relations and teamwork Difficulty: Hard 11) Related to the issues of ethics and lying in negotiation, ________ are the stated demands made by one party to another. A) priorities B) positions C) interests D) preferences Answer: B Page Ref: 170 AACSB: Interpersonal relations and teamwork Difficulty: Easy

12) With regard to ethically-questionable behavior in negotiation, which of the following scenarios is the best example of a traditional competitive bargaining strategy? A) Creating false information to back-up a claim or argument B) A deal is agreed upon with a handshake, but before the contract is signed or payment exchanged, one party backs out of the agreement C) Attempting to weaken an opponent's position by influencing their associates D) Making a very high or low opening offer Answer: D Page Ref: 167 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) There are a number of ethically-questionable behaviors in negotiation, such as attacking an opponent's network, misrepresentation, and feigning emotions. What type of thinking/feeling encourages ethical behavior? A) Self-focus B) Negative outlook C) Empathy D) Suspicion Answer: C Page Ref: 169 AACSB: Interpersonal relations and teamwork Difficulty: Easy 14) Which of the following statements is most TRUE about people's tendency to engage in deception in negotiation? A) The more uncertainty negotiators have about material facts, the less likely they are to lie B) Being on a team decreases lying C) People are more likely to lie when they have a personal relationship with the counterparty D) The more negotiators have to gain economically by lying, the more likely they are to lie Answer: D Page Ref: 172 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) Which of the following types of negotiators are most likely to avoid using ethically questionable negotiation behaviors? A) A negotiator high in empathy B) A negotiator who suppresses their emotions C) A negotiator who has entity views of others D) A man whose competitor has just lied to him Answer: A Page Ref: 169 AACSB: Interpersonal relations and teamwork Difficulty: Easy

16) Power propels negotiators to achieve their goals, which may be egocentrically biased, and ultimately leads to more inequitable information sharing and outcomes. However, when powerful negotiators engage in ________, negotiators shared more information, developed more accurate judgments, and negotiated better outcomes. A) deductive reasoning B) role modeling C) perspective-taking D) greater risk-taking Answer: C Page Ref: 164 AACSB: Interpersonal relations and teamwork Difficulty: Easy 17) In some negotiations, power is less about the strength of a negotiator's alternatives and more about status and rank in a social-organizational system. In this context, the term "power" refers to: A) the relative social position or rank given to people or groups by others B) the potential a person holds to successfully influence others C) a personal need for structure D) the value a negotiator places on their reputation and status Answer: B Page Ref: 165 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Negotiation creates incentives for people to violate standards of behavior. ________ are the manifestation of cultural, contextual, and interpersonal norms that render certain strategies and behaviors unacceptable. A) Primary status characteristics B) Social dilemmas C) Sacred values D) Ethics Answer: D Page Ref: 166 AACSB: Interpersonal relations and teamwork Difficulty: Easy 19) There are several predictors of the extent to which a negotiator will engage in ethicallyquestionable negotiation behaviors, including all of the following, EXCEPT: A) their attitude toward competitive unethical tactics B) the early use of competitive unethical tactics C) if they know their counterparty's BATNA D) the behavior of the counterparty Answer: C Page Ref: 168 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5 Copyright © 2020 Pearson Education, Inc.

20) Of the ethically questionable behaviors in negotiation, which of the following behaviors has the highest acceptance rating? A) An attack of an opponent's network B) Competitive bargaining C) Inappropriate information gathering D) Misrepresentation and lying Answer: B Page Ref: 168 AACSB: Interpersonal relations and teamwork Difficulty: Easy 21) Because lying is regarded as a highly unacceptable negotiation tactic, it is seen as unethical in negotiation. A given statement may be defined as fraudulent when: A) a speaker knowingly misrepresents a material fact upon which the victim reasonably relies and the fact causes damage B) when the statement insults the beliefs, customs, and assumptions that form the basis of the counterparty's belief system C) the statement is not shared openly with all members of the counterparty D) the counterparty thinks others in their party see the statement as false Answer: A Page Ref: 170 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 22) In negotiation there can be quite a few complexities to sharing or failing to share information with the counterparty. ________ occurs when a negotiator does not mention their true preferences and allows the other party to arrive at an erroneous conclusion. A) Active misrepresentation B) Passive misrepresentation C) Lying by omission D) Lying by commission Answer: B Page Ref: 171 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

23) The social context of a negotiation has influence upon a negotiator's willingness to behave unethically during a negotiation. Groups of negotiators are ________ than individuals in the same bargaining situation. A) more honest B) less honest C) able to deceive more often D) able to deceive less often Answer: B Page Ref: 172 AACSB: Interpersonal relations and teamwork Difficulty: Easy 24) A survey of negotiators asked them to describe the conditions under which they personally would engage in deception during negotiation. Most people were able to identify situations in which they would lie, the most common reason being: A) the person thought the other party was lying too B) the person thought they would not get caught in a lie C) the person wanted to protect their reputation D) the negotiation was life or death Answer: A Page Ref: 172-173 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Once a negotiator puts an offer on the bargaining table, an unwritten business norm comes into play: that he or she should not retract it. ________ is the term used to refer to negotiators who make offers, and then either retract or fail to follow through with them. A) Good-faith bargaining B) Bad-faith bargaining C) Self-fulfilling prophesy D) Male pragmatism hypothesis Answer: B Page Ref: 166 AACSB: Interpersonal relations and teamwork Difficulty: Easy 26) In some housing markets, sellers invite buyers to submit sealed-bids and choose among them, hoping to induce buyers to bid above the listed price. This type of situation, where multiple negotiators compete against one another in a competitive fashion, is also known as: A) an overaspiring negotiation B) bad-faith bargaining C) a bidding war D) good-faith bargaining Answer: C Page Ref: 175 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7 Copyright © 2020 Pearson Education, Inc.

27) Most negotiators are reluctant to make concessions when they fear the other party will ________. Negotiators are more likely to make concessions if they feel they will be successful in closing the deal. A) attack their network B) behave ethically C) change their reservation price D) continue to prolong negotiations Answer: D Page Ref: 176 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) It is important for negotiators to be mindful about their own ethical behavior. ________ refers to the limits of people to make ethical decisions because they are either unaware of or fail to fully and deliberately process information. A) Bounded ethicality B) Perspective-taking C) Self-efficacy D) False conflict Answer: A Page Ref: 177 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 29) Negotiation poses a self-control conflict between pursuing short-term economic benefits by behaving dishonestly versus pursuing long-term relational benefits by being honest. Mindful of this conflict, what is a recommended method that helps a negotiator reduce the temptation of short-term economic gains by unethical means in favor of long-term relational benefits? A) A negotiator should avoid preparing in advance for a negotiation, instead they should be prepared to improvise B) A negotiator should consider the implications of several decisions simultaneously and have a broad decision frame for their future self C) A negotiator should focus on their status and power and how they can prepare to best leverage them in the negotiation D) A negotiator should hold an entity view of the counterparty's character and endeavor to negotiate as a part of group, rather than as an individual Answer: B Page Ref: 177 AACSB: Interpersonal relations and teamwork Difficulty: Hard

30) In addition to being aware of your own ethical behavior in a negotiation, be advised that the counterparty may also attempt to use ethically-questionable tactics at the bargaining table. There are a number of behaviors that can neutralize a counterparty's unethical behavior, thereby improving the likelihood of reaching an integrative outcome. Each of the following are one of those behaviors, EXCEPT: A) suggesting you have no other alternatives B) suggesting serious legal implications for the counterparty C) pointing to shared links in your social and professional networks D) suggesting limited options for the counterparty Answer: A Page Ref: 178 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 31) One thing a negotiator definitely needs to protect is her or his reputation. Based on a combination of first- and second-hand information, reputations are best defined as: A) the underlying capacity of a negotiator to obtain benefits from an agreement B) the relative social position or rank given to people or groups by others C) cues and characteristics that have no legitimate bearing on the allocation of resources or norms of interaction, but nevertheless exert a powerful influence on behavior D) a socially-constructed label that provides representations that organize our perceptions of other people Answer: D Page Ref: 179 AACSB: Interpersonal relations and teamwork Difficulty: Hard 32) Reputations are often more extreme and polarized than the person they represent. Furthermore, the reputations we assign to others are highly internally consistent. Once we decide that someone is trustworthy, other qualities about this person are perceived as consistent with this favorable impression. This tendency can then give rise to ________, which is the propensity to believe that people we trust and like are also intelligent and capable. A) the forked-tail effect B) the halo effect C) sticky ties D) tunnel vision Answer: B Page Ref: 179 AACSB: Interpersonal relations and teamwork Difficulty: Easy

33) Managers' reputations are built fairly quickly in negotiation communities. A manager who is highly socially networked can expect this high connectivity to have which of the following effects on their reputation? A) A rapid development of their reputation as a negotiator that can be highly difficult to change B) A slow development of their reputation as a negotiator and many chances to correct and change negative habits C) Greater acceptance of their use of ethically-questionable negotiation tactics by the counterparty D) Higher social network connectedness allows a poor or negative reputation as a negotiator to be hidden by way of positive social skills Answer: A Page Ref: 180 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 34) The reputations people gain affect how others deal with them. Of the different types of reputations that have been identified, which of the following is considered the most cooperative? A) Liar-manipulator B) Tough but honest C) Nice and reasonable D) Cream puff Answer: D Page Ref: 180 AACSB: Interpersonal relations and teamwork Difficulty: Easy 35) Reputations assigned to others tend to be highly evaluative, extreme, and polarized and can be summed by as being judgmental, consistent, immediate and inferential. When a negotiator has a reputation for being a liar, there is a greater chance that the counterparty will react to this negative reputation by choosing to: A) use distributive tactics that claim value in a negotiation at the expense of the other party B) use integrative tactics that claim value in the negotiation in cooperation with the other party C) act in an overly cooperative fashion to indicate that the counterparty can trust them and that they have no need to lie D) make more concessions Answer: A Page Ref: 180 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

8.2 Discussion Questions 1) Why is a negotiator's BATNA the most important source of power in negotiation? Why should a negotiator constantly cultivate and improve his or her BATNA prior to negotiating? Answer: When negotiators have an attractive BATNA, they have more power than if they have an unattractive BATNA. It is imperative that negotiators cultivate and improve their BATNA prior to negotiating by taking several actions. First, the negotiator should keep their options open even after they have come to the negotiation table because negotiations can break down prior to mutual settlement. Additionally, a negotiator can signal to the other party that he/she has alternative courses of action. Negotiators who have prepared adequately, have researched the counterparty's BATNA, as well as previous year's data and market information are in a position of power. Page Ref: 163 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) What are some of the behaviors that are considered ethically-questionable in negotiations? Which of these behaviors is considered the least offensive and most pervasive? Answer: Lewicki and his colleagues identified seven ethically-questionable strategies in negotiation including: traditional competitive bargaining, attacking an opponent's network, making false promises, misrepresentation, inappropriate information gathering, strategic misrepresentation of positive emotion, and strategic misrepresentation of negative emotion. In general, traditional competitive bargaining behavior, such as hiding one's real bottom line, is not regarded as unethical. Given that many negotiations do not regard traditional competitive bargaining to be unethical, these behaviors are more pervasive than the other ethically questionable behaviors identified by Lewicki. Page Ref: 167 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) What situational factors might lead people to engage in deception? Answer: Lying is considered an unethical behavior in negotiation. People may engage in deception because of the lure of temptation, uncertainty, powerlessness, and anonymity of victims. The more negotiators have to gain economically by lying or the more uncertainty negotiators have about material facts, the more likely they are to lie. The most common reason for lying is we think the other party is lying. Being on a team may increase the tendency to lie. Additionally, in competitive contexts such as negotiation, perspective-taking leads people to prophylactically engage in unethical behaviors to prevent themselves from being exploited. Page Ref: 172 AACSB: Interpersonal relations and teamwork Difficulty: Hard

4) What are some of the affects of power and status on the conduct of bargaining? How do groups of high-power and high-status individuals work together as a team? Answer: In many situations, power and status are correlated, such that high-ranking people may in fact have better alternative. Power and status have similar positive effects on how dominant we think someone is. Power has a negative effect on how warm we think someone is, but status moderates this "power penalty." High power people without status are associated with low warmth, but people who have both power and status are judged to be warm. Groups of highpower individuals performed worse because they fought over relative status in the group, were less focused on the task and shared information less effectively. Page Ref: 165 AACSB: Interpersonal relations and teamwork Difficulty: Hard 5) Why are ethics so frequently a problem in negotiations? What are some best practices a negotiator can use to determine whether a given behavior is ethical? Answer: Fairness and ethical behavior are subjective, meaning that a variety of norms exist, and negotiators usually focus on norms that serve their own interests. Negotiators also are affected by psychological tendencies that foster poor decision-making. Most often people believe they are behaving ethically but due to self-serving tendencies, problems result and negotiators cry foul. Well-meaning people engage in unethical behaviors without awareness that they are doing so. For evaluating ethical behavior, consider the front-page test that poses the following question: Would you be completely comfortable if your actions and statements were printed on the front page of the local newspaper or were reported on the TV news? If not, then your behavior or strategies in question may be regarded as unethical. Other best practices to use when considering whether a given behavior is unethical is asking, "would I advise others to do this?", see how a third party regards your planned behavior, and negotiators who have adequately prepared will be less tempted to lie. Page Ref: 167, 177 AACSB: Interpersonal relations and teamwork Difficulty: Hard 6) Power in a negotiation can be analyzed in terms of four vantage points, describe each in detail. Answer: Power in a negotiation can be analyzed in terms of four vantage points: potential power, perceived power, power tactics, and realized power. A negotiator's potential power is the underlying capacity of the negotiator to obtain benefits from an agreement. It is a function of the counterparty's dependence on you. How much someone depends on you in a negotiation is based upon how much they value the resources you provide and value the alternative to negotiating with you. Perceived power is a negotiator's assessment of each party's potential power, which may or may not square with reality. Whereas a negotiator's alternatives affect the distribution of outcomes, perceived power, as well as actual alternatives, affect the integrativeness of outcomes. Power tactics comprise what's commonly studied in negotiation behavior and refer to the behaviors designed to use or change the power relationship. Realized power is the extent to which negotiators claim benefits from an interaction. Page Ref: 162 AACSB: Interpersonal relations and teamwork Difficulty: Hard 12 Copyright © 2020 Pearson Education, Inc.

7) In some negotiation situations, one party has considerately more power as compared to the other party. Such situations are characterized by power asymmetry. How does the balance of power between negotiators affect the processes and outcomes of negotiation? Answer: For symmetric high-power dyads, value creation is associated with increased mutual accommodation; but in low-power dyads, value creation is associated with greater contentiousness. Asymmetric-power dyads maximize value creation when they adopt a neutral stance, neither overusing or under using accommodation or contentiousness. Page Ref: 164 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) Research supports the assertion that during negotiations, a negotiator "who has nothing to lose" and no power can be in a more advantageous position that a negotiator with a little power and a weak alternative option. Why? Answer: A negotiator with no power can be in a more advantageous position during negotiations than a person with a little power. This is because negotiators with a little power but weak alternatives may be unwittingly anchored by their low-value alternative and reduce the value of their first offer. In contrast, the negotiator who does not have a clear alternative is not weighed down by an unattractive BATNA. Indeed, negotiators without an alternative feel less powerful, but make higher first offers and ultimately secure superior outcomes compared with negotiators who have weak alternatives. Page Ref: 164-165 AACSB: Interpersonal relations and teamwork Difficulty: Hard 9) Regarding status and negotiation performance, does status actually enhance negotiation performance, particularly when a negotiation requires negotiators to work in a group and involves sophisticated information exchange and creative thinking? Answer: Groups of high power negotiators were found to be less likely to reach agreement on difficult negotiation tasks because they fought over relative status in the group, were less focused on the task, and shared information less effectively. Page Ref: 165 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) What are the differences between lying by omission, lying by commission and paltering? Which strategy is viewed as most unethical and do any of these strategies actually increase the claimed value during negotiations? Answer: Lying by omission is the passive omission of relevant information. Lying by commission is the active use of false statements. Sins of commission are regarded as more unethical than sins of omission. Paltering differs from lying by omission and commission as it is the active use of truthful statements to convey a misleading impression. Paltering is common in negotiations and many negotiators prefer to palter than to lie by commission. Palterers are likely to claim additional value, but risk impasse and harming their reputations. Page Ref: 174-175 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13 Copyright © 2020 Pearson Education, Inc.

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 9 Creativity, Problem Solving, and Learning in Negotiation 9.1 Multiple-Choice Questions 1) Considering the variety of creative techniques for reaching an integrative negotiation agreement, which of the following refers to a cost-cutting solution? A) Adding a string of benefits to a small initial offer B) One party getting their preferred terms on one issue in exchange for reducing the costs incurred by the counterparty C) Reducing the size of concessions D) Each party lowering their aspirations on issues that are of less interest to them Answer: B Page Ref: 190 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Considering the variety of creative techniques for reaching an integrative negotiation agreement, which of the following strategies describes non-specific compensation? A) Compensating the parties on a variety of low-priority issues B) Neither party gets its initial specific demands but an alternative option is developed C) One party getting what it wants and the other is compensated by some method on a new issue D) Trading low priority issues for higher priority issues Answer: C Page Ref: 191 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) People's ability to solve problems in new contexts depends on the accessibility of their relevant knowledge. In negotiation, this "knowledge transfer" refers to: A) applying irrelevant knowledge to novel situations B) instructions outside of the context of real problems C) subconsciously evaluating the issue and its inferences D) the ability to apply a strategy or idea learned in one situation to solve a problem in a new situation Answer: D Page Ref: 199-200 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) A major obstacle to reaching integrative negotiation agreements is negotiators' beliefs about the outcome of some future event. A ________ is a type of agreement in which parties leverage differences of opinion to form an integrative agreement. A) speculative agreement B) contingent contract C) compromise contract D) fixed contract Answer: B Page Ref: 191 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) A strong correlation exists between feedback and performance - it is logical to seek feedback on one's negotiation abilities. With regard to improving one's negotiation performance via training and experience, which of the following statements is most TRUE? A) Lecture or didactic feedback results in the best performance B) Observational learning and analogical learning both lead to the best improvements in performance C) Delaying feedback for a short period of time results in improved performance D) Qualitative feedback is superior to quantitative feedback for improving performance Answer: B Page Ref: 198 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) Negotiators who desire to have a productive brainstorming session should follow several rules, including the ________ rule, which specifies that members of the group should try to modify and extend the ideas suggested by other members of the group. A) quantity B) building C) expressiveness D) nonevaluation Answer: B Page Ref: 202 AACSB: Interpersonal relations and teamwork Difficulty: Easy

7) Fashioning win-win agreements that leverage both parties' interests involves creativity and problem-solving. Unfortunately, the creative aspect of negotiation is often ignored by negotiators who fixate on the fixed-pie perception, a cognitive bias in which negotiators believe that: A) one's BATNA can never improve B) the counterparty's BATNA is more attractive than it actually is C) the counterparty's interests are directly opposed to one's own D) creativity will not yield a better outcome in a negotiation Answer: C Page Ref: 182 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) A negotiator's personal cause and effect theory about what behaviors will lead to certain outcomes in a negotiation is best termed: A) a mental model B) haggling model C) availability heuristic D) exchange norms Answer: A Page Ref: 187 AACSB: Interpersonal relations and teamwork Difficulty: Easy 9) Of the different types of mental models that shape and guide behavior in negotiation, the most common type of model is the ________, and is based on the cognitive bias called the ________. A) partnership model; hindsight bias B) problem solving model; surface level transfer C) haggling model; fixed-pie perception D) game-playing model; representativeness heuristic Answer: C Page Ref: 187 AACSB: Interpersonal relations and teamwork Difficulty: Easy 10) Negotiators who ascribe to the ________ believe it is important to build rapport to nurture a long-term relationship and in many cases, to make sacrifices for the purpose of creating longterm goodwill. A) problem solving model B) cost-benefit analysis model C) game playing model D) partnership model Answer: D Page Ref: 188 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3 Copyright © 2020 Pearson Education, Inc.

11) A businessperson calculates the odds of every purchase decision in order to maximize returns on an investment. Which of the following mental models is this businessperson using? A) Cost-benefit analysis model B) Problem solving model C) Haggling model D) Game playing model Answer: A Page Ref: 187 AACSB: Interpersonal relations and teamwork Difficulty: Easy 12) Which mental model of negotiation focuses on the collaborative or cooperative aspects of the negotiation task and involves a great deal of creativity, reframing, and out-of-the-box thinking? A) Cost-benefit analysis model B) Haggling model C) Problem solving model D) Game playing model Answer: C Page Ref: 188 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) Of the different ways that a negotiation agreement can be reached using a creative approach, the ________ approach awards one of the negotiating parties by some method that was initially outside the bounds of the negotiation. A) the agreement bias B) nonspecific compensation C) circular logrolling D) information pooling Answer: B Page Ref: 191 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 14) Often, it is not possible for negotiators to find a compromise solution; expanding the pie does not work, and neither party can get what they want in a tradeoff. A ________ solution creates new alternatives that can meet both parties' underlying interests. A) cost cutting B) bridging C) offer pattern D) even-split Answer: B Page Ref: 190 AACSB: Interpersonal relations and teamwork Difficulty: Easy

15) Although contingent contracts can be valuable in many kinds of business negotiations, they are not always the ideal strategy to use. In order for contingency contracts to be viable and useful in negotiation, they must: A) accurately predict the future B) apply to the needs of the present, and not written to consider any future interactions between the parties C) have a high degree of clarity and measurability D) involve three or more parties in the contract Answer: C Page Ref: 194 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) What technique increases the rate of positive knowledge transfer from one situation to similar others and thereby creates more win-win potential and trust among negotiators? A) Diverse analogical training and deep-level situational comparisons B) Use trial and error to gradually find elements that work C) Persevere through failure to eventually come to the right solution D) Increase group size Answer: A Page Ref: 199 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 17) Of the different techniques that can remedy threats to problem solving and enhance creativity in negotiation, what is the most effective means of improving a negotiator's ability to reach winwin agreements? A) Threats of disciplinary actions unless improvements in negotiated outcomes are seen B) Overconfidence C) Hindsight D) A negotiation skills training program Answer: D Page Ref: 195 AACSB: Interpersonal relations and teamwork Difficulty: Easy

18) Looking at negotiators' mental models and how they affect performance, we see that shared metacognition promotes more cooperative negotiation, greater insight into the counterparty's values and interests, and greater satisfaction with the negotiation outcome. It has been found that to the extent that negotiators have ________ the better they are at exchanging the information necessary to create integrative agreements. A) a high ability to think abstractly from a distant perspective B) a low ability to think abstractly from a distant perspective C) high power D) high status Answer: A Page Ref: 189 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 19) In negotiation, the timing of offer exchange and the insight it provides is important. Negotiators who make ________ first offers in the negotiation are more likely to discover creative agreements that meet the parties' underlying interests. A) early B) later C) high D) low Answer: B Page Ref: 190 AACSB: Interpersonal relations and teamwork Difficulty: Easy 20) Managers who are interested in improving their ability to negotiate often seek out negotiation skills training that involves challenging negotiators to complete simulations that contain integrative potential that may not be obvious. In order to get the most positive learnings out of this type of training, an important aspect of this experience is for negotiators to: A) use very aggressive negotiation tactics B) see how much value they can claim using ethically questionable negotiation tactics C) reflect and seek feedback after completing negotiations D) be given negative-ability and negative-ethicality feedback Answer: C Page Ref: 195 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

21) If negotiators can substantially improve their outcomes by training, how might negotiators perform if they encounter a "naïve" opponent as opposed to an opponent who has similar experience and training in negotiation? Which of the following negotiation situations created the least integrative potential for both parties? A) Both buyer and seller had negotiation training B) Neither buyer nor seller had negotiation training C) Buyer had negotiation training, but the seller did not D) Seller had negotiation training, but the buyer did not Answer: C Page Ref: 196 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 22) The effectiveness of negotiation training programs is they provide negotiators hands on experience in a variety of situations. To the extent that training can be tailored and customized to address distributive, integrative, and adaptable skills, negotiators can acquire skills more readily. However, negotiation experience accompanied by ________ is more effective in improving performance than by experience alone. A) rewards for highest value agreements B) outcome feedback with insights into the counterparty's interests C) surface-level transfer of similar negotiation situations D) classroom lectures Answer: B Page Ref: 196 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 23) The type and method of negotiation feedback is important to a negotiator's progress in subsequent negotiations. Of the four types of feedback that can be given post-negotiation, which type of feedback led negotiators in their subsequent negotiations to be the least competitive and achieve the worst individual performances? A) Positive-ability feedback B) Negative-ethicality feedback C) Positive-ethicality feedback D) Negative-ability feedback Answer: D Page Ref: 197 AACSB: Interpersonal relations and teamwork Difficulty: Easy

24) The most valuable type of feedback that a person undergoing negotiation training can receive is comprised of two critical components: how well the negotiator understood the counterparty's general priorities among the issues under negotiation and: A) how well the negotiator understood what the counterparty stood to gain for a particular offer B) how well the negotiator timed the patterns of his or her offers C) how much of the bargaining range did the negotiator gain and how close did they come to their target point D) how well the negotiator communicated their interests and priorities Answer: A Page Ref: 197 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Negotiators who want to improve their skills often have a reason or goal that drives their desire to become a better negotiator. ________ goals focus attention on task strategies, and ________ goals focus on outcomes. Negotiators who have ________ goals are more likely to reach integrative agreements and are viewed as more cooperative and better informed about their counterparty's interests. A) Performance; learning; performance B) Unilateral; bilateral; unilateral C) Learning; performance; learning D) Bilateral; unilateral; bilateral Answer: C Page Ref: 197 AACSB: Interpersonal relations and teamwork Difficulty: Easy 26) A negotiator's goals and motivations greatly affect the quality of negotiated outcomes. When a negotiator desires to avoid bad outcomes and events, such as being jobless or failing to reach an agreement with the counterparty, their goal orientation is best termed: A) promotion-focused B) prevention-focused C) high-construal D) low-construal Answer: B Page Ref: 198 AACSB: Interpersonal relations and teamwork Difficulty: Easy

27) Skilled problem solvers frequently report that after trying to solve a problem and getting nowhere, they put the problem aside for hours, days, even weeks, and upon returning to it, they can see the solution quickly. This process is also best known as: A) preparation B) illumination C) verification D) incubation Answer: D Page Ref: 200 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) The rational problem-solving model describes four deliberate and systematic steps for solving a problem. Of the four steps, during which one does a negotiator ask themselves whether past experience is a profitable means of finding a solution method, engaging in a search for similar problems, and/or restating the goal of the problem? A) Understand the problem B) Carry out the plan C) Devise a plan D) Look back Answer: C Page Ref: 201-202 AACSB: Interpersonal relations and teamwork Difficulty: Easy 29) One type of negotiation-specific brainstorming is called ________, which is an off-therecord, facilitated workshop in which key stakeholders in negotiations brainstorm mutually advantageous approaches to their conflict challenges. A) set effect B) devising seminars C) possibility forum D) unbundling technique Answer: B Page Ref: 202 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

30) Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members. Of the defined rules for brainstorming sessions, what defines the rule of expressiveness? A) Group members should not evaluate any of the ideas in any way during the generation phase B) Group members should try to modify and extend the ideas suggested by other members whenever possible C) Group members should generate as many ideas as possible D) Group members should express any idea that comes to mind Answer: D Page Ref: 202 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 31) Contingent contracts can be valuable in many kinds of business negotiations. All of the following are advantages of using contingency contracts during negotiations, EXCEPT: A) Contingent contracts allow negotiators to build on their differences, rather than arguing about them B) Contingent contracts allow negotiators to reduce the incentives of the parties to perform at specified levels C) Contingent contracts allow negotiators to manage decision-making biases D) Contingent contracts allow negotiators to diagnose the honesty of the counterparty Answer: B Page Ref: 194 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 32) The key ingredient for effective negotiation training in the classroom is ________, which ultimately improves a negotiator's ability to negotiate. A) to provide feedback B) group discussion opportunities C) a learning style assessment D) learning partners Answer: A Page Ref: 196 AACSB: Interpersonal relations and teamwork Difficulty: Easy

33) There are number of types of performance feedback that a negotiator can receive from a negotiation training session. If a negotiator receives the following feedback, "What an unethical negotiator you seemed to be", what is the most likely behavior that negotiator will exhibit in a subsequent negotiation situation? A) Low competitiveness B) High cooperation C) High honesty D) No change in behavior Answer: C Page Ref: 197 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9.2 Discussion Questions 1) Why is creative thinking so often downplayed or ignored in the process of negotiation? Answer: Agreements are often reached based upon power or on the competitive aspect of negotiation. This tendency is largely driven by the fixed-pie perception because negotiators frequently believe that "expanding the pie" is the same as compromising. Integrative bargaining requires creativity and problem solving, and the process of slicing the pie can be a lot easier when the pie has been enlarged via creative and insightful problem-solving strategies jointly agreed to by the parties. Page Ref: 182 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) In what ways do different methods and types of feedback affect the performance of negotiators in subsequent negotiations? Answer: The key ingredient for effective negotiation training in the classroom is providing feedback. Feedback improves a negotiator's ability to negotiate. It is difficult to improve performance in the absence of feedback. Feedback is most helpful when it allows negotiators to understand their perceptions of the importance of issues to the other party. When it comes to learning, the type and method of feedback do matter. In one investigation, negotiators who received the negative-ability feedback were the least competitive and achieved the worst individual performance. Negotiators who received the negative-ethicality feedback were the most honest. Negotiators who received the positive-ethicality feedback were the most cooperative. Nearly any type of feedback is better than no feedback at all, and nearly anything is better than traditional, classroom-style, didactic learning. In an in-depth analysis of feedback in negotiation, two types of information were examined: how well negotiators understood the counterparty's general priorities among the issues under negotiation and how much the counterparty gained for a particular offer. Both types of understanding are important for negotiators to improve; understanding the counterparty's interests is not sufficient to reach integrative outcome, the additional step of assessment of the gains for each offer is key. Page Ref: 196-197 AACSB: Interpersonal relations and teamwork Difficulty: Hard 11 Copyright © 2020 Pearson Education, Inc.

3) What are some of the advantages of creating contingent contracts? What are some of the characteristics to ensure the viability and usefulness of contingent contracts? Answer: With contingent contracts, differences of opinion about future events become the core of the agreement. Negotiators can bet on the future rather than argue about it, change one party's point of view, or worse yet, reach an impasse. With a contingent contract, negotiators can focus on their real mutual interests, not on their speculative disagreements. Another advantage of contingent contracts is that they provide a nearly perfect lie-detection device. Contingent contracts allow negotiators to test the counterparty's veracity in a non-confrontational manner, thereby allowing parties to save face. Contingent contracts also allow parties who are concerned about being misled to safeguard themselves. By the same token, contingent contracts build trust and good faith between negotiators because incentives can be provided for each company to deliver exceptional performance. Therefore, contingent contracts provide a safety net, limiting each company's losses should an agreement go awry unexpectedly. Contingent contracts also allow negotiators to increase the incentive of the parties to perform at or above contractually specified levels. Although contingent contracts can be valuable in many kinds of business negotiations, they are not always the ideal strategy to use. There are three key criteria for assessing the viability and usefulness of contingency contracts: some degree of continued interaction between the parties; the enforceability of the contract; and a high degree of clarity and measurability. Page Ref: 191-194 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) What is a mental model of negotiation? How does a mental model affect how a negotiator approaches a negotiation? Answer: A mental model of negotiation is a person's theory about what behaviors will lead to certain outcomes. Negotiators' mental models shape their behavior and affect the course of negotiation. The games that negotiators think they are playing with others influence how others see them, their use of deception, and a number of other behaviors. For example, if you view negotiation as a "dog-eat-dog" enterprise, you are going to be much tougher than if you view negotiation as a "partnership". Page Ref: 187 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

5) Why do business negotiations often avoid or ignore contingent contracts as options for creative agreements? Answer: In many business negotiations, contingency contracts are ignored or rejected for several reasons. First, people are unaware of how to construct contingency contracts. Second, contingent contracts are often seen as a form of gambling. Third, no systematic way of thinking about the formulation of such contracts is usually available, meaning that they appear to be a good idea, but how to formalize and act upon them remains an enigma. Fourth, many negotiators have a "getting to yes" bias, meaning they focus on reaching common ground with the other party and are reluctant to accept differences of interest, even when this might create viable options for joint gain. Page Ref: 192 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) A key challenge of business negotiations is contract renewals with partners, customers, clients, and suppliers, as terminated contracts are costly. How might managers go about improving their own ability to negotiate and enhance the quality of their win-win agreements? Answer: There are a number of techniques for improving the quality of negotiated agreements. First, participation in negotiation skills training sessions that have post-experience reflection periods is one of the foundational methods for negotiation skills improvement. Second, feedback is most helpful when it allows negotiators to understand their perceptions of the importance of issues to the other party. Third, setting learning rather than performance goals, allows a negotiator to focus on improving task strategies rather than outcomes and negotiators with learning goals are more likely to reach agreement. Fourth, negotiators who pursue diverse analogical training that engages them in deep-level situational comparisons are more likely to reach win-win solutions with a counterparty. Finally, a focus on additive counterfactual reflection, making time to incubate on thoughts when problem solving, a deliberate and systematic use of the rational problem-solving model and brainstorming can all improve a negotiator's skills and the quality of their negotiated outcomes. Page Ref: 195-202 AACSB: Interpersonal relations and teamwork Difficulty: Hard

7) It is often easier to see the creative opportunities in negotiation in hindsight. What are some of negotiation strategies that, if used thoughtfully and strategically, can result in truly creative negotiation agreements? Answer: There are a number of strategies that can be used in the effort to achieve a truly creative negotiation agreement. First, fractionating negotiation issues into multiple parts and creating several issues from what may appear to be a single-issue negotiation is probably the most important aspect of creative negotiation. Second, negotiators who make their first offers later in the negotiation are more likely to discover creative agreements that meet both parties' underlying interests than those who make early first offers. Third, using techniques such as expanding the pie and offering a bridging solution can both create new alternatives that meet both parties' underlying interests. Finally, offering financial incentives like cost cutting, nonspecific compensation, and contingent contracts all can pave the way to a creative, integrative agreement. Page Ref: 189-194 AACSB: Interpersonal relations and teamwork Difficulty: Hard 8) How well are managers able to transfer what they learn in the classroom to actual business negotiations? Why is it difficult to apply knowledge learned in one situation to another? Answer: A manager's ability to transfer what they learn in negotiation training or in the classroom is limited because of limited personal experience—when attempting to learn something new, it is important to have two or more cases or examples to mentally draw upon. Another reason why managers struggle to transfer training knowledge to situational knowledge is what is essential about any example taught in a training program is not the superficial details of the exercise, but rather the underlying ideas behind it. The ability of a manager to separate the core idea of the exercise from the idiosyncrasies of the exercise is limited if they only have one other similar situation to compare to and draw upon for knowledge. Page Ref: 199 AACSB: Interpersonal relations and teamwork Difficulty: Hard 9) Why is one of the defined rules of brainstorming related to a high quantity of ideas? Answer: The goal of brainstorming is to maximize the quantity and quality of ideas. Paradoxically, quantity is a good predictor of quality: a group is more likely to discover a really good idea if it has a lot of ideas from which to choose. Page Ref: 202 AACSB: Interpersonal relations and teamwork Difficulty: Easy

10) What is counterfactual thinking and how does it affect learning in negotiation? Answer: Counterfactual reflection is the process of thinking about the past. Negotiators who reflect on additive counterfactuals (e.g., "If only I had…") learn more than negotiators who reflect on subtractive counterfactuals (e.g., "If only I had not…"). Generating additive counterfactuals about a previous negotiation led to a distinct advantage for negotiators as compared to subtractive counterfactuals in terms of distributive and creative agreements. Page Ref: 200 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 10 Multiple Parties, Coalitions, and Teams 10.1 Multiple-Choice Questions 1) A multi-party negotiation is formed when three or more individuals attempt to resolve perceived differences of interest. A key difference between two-party and multi-party negotiations is: A) faster information sharing in multiparty negotiations B) equalization of outcomes in multiparty negotiations C) more accurate judgments in multiparty negotiations D) the potential for a subset of members to form a coalition in multiparty negotiation Answer: D Page Ref: 209 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2) Which of the following is generally TRUE with regard to coalitions in negotiation? A) All parties' interests are perfectly aligned B) Members of the coalition cooperate to attract members and gain an advantage in the larger group, but compete with one another over the division of resources C) Members of the coalition compete with one another to gain advantage in the larger group, but cooperate with one another when dividing resources D) Members use circular tradeoffs with the larger group and reciprocal tradeoffs among coalition members Answer: B Page Ref: 209 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Frequently, when a team of people vote to form a group consensus, the unstable voting outcomes can point to a larger concern known as the impossibility theorem. With regard to combining members' preferences to reach a consensus, the impossibility theorem states that: A) there is not a best way to derive a group's preference from combining individual preferences B) there is not a best way to derive individual preferences from analyzing a group's overall preference C) groups take much longer to reach agreement than two-party negotiations D) groups often fail to see a positive bargaining zone when it actually exists Answer: A Page Ref: 212 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) A coalition is best defined as a group of two or more individuals who combine their resources to affect the decision outcome of a mixed-motive situation involving at least three parties. One of the most effective strategies for enhancing coalitional effectiveness is to: A) make unilateral concessions amongst group members B) obtain verbal commitments, as people often feel obligated to follow through with promises they make with others C) increase the functional distance between coalition members D) allocate resources by a needs-based equity distribution system amongst coalition members Answer: B Page Ref: 220 AACSB: Interpersonal relations and teamwork Difficulty: Hard 5) Sometimes, negotiators hire agents to act on their behalf in negotiations. In a study of home buyers and sellers, home selling prices were highest when the agent knew only: A) the seller's reservation price B) the buyer's reservation price C) the seller's time constraints D) the buyer's time constraints Answer: B Page Ref: 221 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) There are several advantages of working with an agent in a negotiation. In most principalagent relationships, an agent's authority is limited with respect to: A) making concessions or agreements B) joining professional affiliations C) providing a buffer zone D) targeting key strategies Answer: A Page Ref: 225 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7) Negotiations often involve several parties. The people who do the actual negotiation are known as the primary table. The secondary table in negotiation refers to the: A) counterparty's bargaining team B) parties' hidden interests and unexpected coalitions C) constituents who have authority over the agreement but may not be physically present D) biases that affect the primary table Answer: C Page Ref: 208 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

8) In a group negotiation, people often need to vote on a number of options to make decisions. The problem of indeterminate group choice is further compounded by group members who use strategic voting misrepresentation which refers to: A) members of coalitions pressuring individuals to vote for a particular choice B) group members taking votes when the timing is right for them to prevail C) group members not counting certain votes that have been legitimately submitted D) group members not always voting based upon their actual preferences Answer: D Page Ref: 212 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) Agents have an incentive to make transactions happen and are motivated to apply pressure to whomever is motivated to reach a deal. Therefore a key challenge of working with agents is that: A) the agent has limited authority to offer price reductions B) the emotional detachment and tactical flexibility provided by an agent may make it hard for the counterparty to infer the principal's interests C) an agent's incentives are not perfectly aligned with the principal's D) the agent doesn't act as a face-saving buffer for the principal Answer: C Page Ref: 222 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Negotiators may need to communicate with another person in the presence of someone who should not understand their message. Ideally, the negotiator wants to communicate information to others in their group in a way that the counterparty does not understand or make them aware that a surreptitious communication is taking place. This communication situation is called the: A) hidden table B) multiple audience problem C) questionable ethics problem D) passive misrepresentation Answer: B Page Ref: 209 AACSB: Interpersonal relations and teamwork Difficulty: Easy

11) Consider a multiparty negotiation situation where integrative tradeoffs may be achieved through either circular or reciprocal logrolling. How does the tradeoff strategy of circular logrolling work? A) Tradeoffs are all presented at once and each member gets to select which one works best for them B) Negotiators each give and exchange resources with each other C) Each group member offers a counterparty member a concession on one issue while receiving a concession from a different group member on a different issue D) One party gives a concession and receives a cash bond from another party Answer: C Page Ref: 210 AACSB: Interpersonal relations and teamwork Difficulty: Hard 12) Which of the following statements is TRUE about the unanimity rule in negotiations? A) It is time consuming and it encourages group members to consider creative alternatives to expand the size of the pie B) It allows individuals to express their preferences to the group C) It fosters the development of mutually beneficial trade-offs D) Voting by the unanimity rule eliminates all conflicts of interest Answer: A Page Ref: 211 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) When negotiators arrange to have their preferred alternatives entered at later stages of a sequential voting process, what psychological principle are they taking advantage of? A) Majority rule—all individual votes count by the same weight B) In-group bias—a pattern of favoring members of one's in-group over out-group members C) Impossibility theorem—the derivation of group preference from individuals' preferences is indeterminate D) Condorcet paradox—the winners of majority rule elections will change as function of the order in which the alternatives are proposed Answer: D Page Ref: 212 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

14) When a group member votes for their least-preferred option to ensure that their preferred strategy is NOT eliminated in the first round of voting, what is that group member doing? A) Horizon thinking B) Information pooling C) Strategically misrepresenting their preferences D) They are under the influence of the agreement bias Answer: C Page Ref: 212 AACSB: Interpersonal relations and teamwork Difficulty: Easy 15) Negotiating groups often severely mismanage their time. Groups tend to limit the size and number of proposals they will consider and fail to explore options or alternatives in a systematic fashion in negotiations. What problem does this exemplify? A) Information pooling B) Condorcet paradox C) Tunnel vision D) Naïve realism Answer: C Page Ref: 213 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) The creative strategy of ________ can be of great help to negotiators seeking creative negotiation agreements. This strategy involves people sharing individual ideas by written notes and capitalizes on the fact that individuals are better at generating ideas than groups. A) sequential bargaining B) brainwriting C) reciprocal trade-offs D) information pooling Answer: B Page Ref: 213 AACSB: Interpersonal relations and teamwork Difficulty: Easy

17) Regarding trust and temptation within coalitions, how are members influenced by both the status quo bias and the norm of coalitional integrity? A) Group members shouldn't form coalitions too early in the negotiation process, before they can find out which group members behave without integrity B) Coalition members should always be truthful with one another regarding their individual opinions C) Even when a new coalition structure forms that offers greater gain to members, coalition members often experience a strong pull to stay with their current coalition D) Agreements made amongst coalition members are full of integrity Answer: C Page Ref: 215 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 18) Often there are power differences in group negotiation and power imbalance makes power issues salient to group members, whose primary concern is to protect their own interests. Compared to egalitarian power relationships, unbalanced power relationships can produce: A) fewer coalitions defecting from the larger group B) fewer integrative agreements C) a reduced likelihood of a bargaining impasse D) less competitive behavior Answer: B Page Ref: 220 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 19) When a negotiating party is embedded within an organization, several peripheral players may have an indirect stake in the outcome. A ________ is on the same side of the negotiation table as the principal but exerts an independent influence on the outcome through the principal. A) common-identity group B) coalition C) common-bond group D) constituent Answer: D Page Ref: 225 AACSB: Interpersonal relations and teamwork Difficulty: Easy

20) Negotiators who are accountable to constituents are more likely to ________ as compared to negotiators who are NOT accountable to a constituent. A) make higher demands B) worry about making their actions appear more favorable to the counterparty C) make more concessions D) process offers in an automatic, heuristic way Answer: A Page Ref: 227 AACSB: Interpersonal relations and teamwork Difficulty: Easy 21) In group negotiation, prototypical members feel more secure about their position in the group. However, when choosing who should represent the group in a negotiation, ________ group members are more attentive and responsive to information relevant to the negotiation, are more motivated to process information, are more perceptive about the emotional expressions of the counterparties, and are more likely to attain win-win agreements. A) peripheral B) prototypical C) common-bond D) second table Answer: A Page Ref: 228 AACSB: Interpersonal relations and teamwork Difficulty: Easy 22) Because people have difficulty thinking about future events, they tend to under- or overestimate the duration of future emotional states, and fail to account for the positive or negative circumstances that could arise. Negotiators need to use which of the following strategies to counteract these biases? A) Information pooling B) Downward social comparison C) Horizon thinking D) Negotiation engineering Answer: C Page Ref: 229 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

23) A ________ is formed when a group of three or more individuals, each representing their own interests, attempts to resolve perceived differences of interest. A) multiparty negotiation B) coalition C) team D) majority rule Answer: A Page Ref: 208 AACSB: Interpersonal relations and teamwork Difficulty: Easy 24) Groups often simplify the negotiation of multiple issues among multiple parties through voting and decision rules. In a multiparty negotiation, the most common procedure used to aggregate the preferences of team members is ________. However, this type of voting procedure fails to recognize the strength of individual preferences and therefore ________. A) the unanimity rule; mutually beneficial trade-offs are not stable B) a voting paradox; promotes fixed-pie thinking C) majority rule; does not promote integrative tradeoffs among issues D) a consensus agreement; is not easy to implement Answer: C Page Ref: 211 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) One strategy that negotiators can use to enhance their ability to expand the slice of the pie in a multiparty context is to research the parties who will be at the negotiation table, develop an understanding of the constituencies they represent, and find the shared social connections between the negotiating parties. All of the following are benefits that can be derived from shared social network connections between negotiators, EXCEPT: A) all group members will equally participate in the negotiation B) less work to establish a basis of trust C) negotiators are more likely to follow through on commitments D) power differences are not as magnified Answer: A Page Ref: 213 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

26) Given that multiparty negotiations are complex and present special challenges, one recommended strategy that can enhance a negotiator's ability to expand integrative outcomes is to develop and assign process roles to the group. All multiparty negotiations need a process manager, a recorder of information and: A) an errand runner B) an intelligence gatherer C) ethics enforcement D) a timekeeper Answer: D Page Ref: 214 AACSB: Interpersonal relations and teamwork Difficulty: Easy 27) Multiparty consensus agreements require the consent of all parties to the negotiation before an agreement is binding. Although consensus agreements are desirable, they precipitate all of the following problems, EXCEPT: A) they are usually inefficient and fail to exploit potential pareto-improving trade-offs B) they create extreme polarization and questions of fairness C) they often lead the group to compromise and identify the lowest common denominator acceptable to all D) parties must agree publicly to a particular settlement, even though their private views about the situation may be in conflict Answer: B Page Ref: 213 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 28) Sometimes negotiators are so intent on reaching common ground with the counterparty they are reluctant to recognize differences of interest, even when such differences might create viable options for joint gain. Other effects of the agreement bias can make negotiators assume that: A) the best way to reach agreement is to divide things equally among the parties involved B) agreement should be reached even if it means the parties' changing their BATNAs C) everyone negotiating wants to "get to yes", even though some negotiators are paid to stall the agreement progress D) that agreement can be reached faster by considering and bargaining about one issue at a time Answer: C Page Ref: 214 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

29) In multiparty negotiations, the formation of coalitions involves both cooperative and competitive challenges. Coalition members compete with each other within the coalition itself during: A) the formation of the coalition B) the distribution of resources among coalition members C) the efforts to maintain the coalition D) the proposal of different offer packages to other parties within the negotiation Answer: B Page Ref: 29, 215 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 30) Of the many advantages that can be realized by using agents to represent one's negotiation interests, which of the following benefits of using an agent is especially important in a contentious negotiation process? A) Network connections and special influence B) Limited authority to accept offers C) Substantive knowledge of tax laws D) Emotional detachment Answer: D Page Ref: 221 AACSB: Interpersonal relations and teamwork Difficulty: Easy 31) A negotiator who decides to work with an agent also should recognize there are some costs to agentic representation. All of the following are disadvantages related to using an agent in negotiations, EXCEPT: A) ineffective agents can complicate the negotiation dynamic and inhibit settlement B) unless directed by the principal, agents cannot make or accept offers and have limited authority C) an agent's interests or incentive structure may be at odds with those of the principal D) an agent diminishes the resources available to be divided among the principals Answer: B Page Ref: 221 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

32) A negotiator who is planning on working with an agent has done their research and has a high degree of confidence that their interests and those of the agent are aligned, and the negotiator has worked out a fair percentage of the sale as an incentive for the agent. What other aim on the part of the principal negotiator can positively affect the amount of effort and effectiveness their agent exerts on their behalf? A) Principal can focus on expanding the bargaining zone during negotiations B) Telling the agent their reservation price C) Building a strong social relationship with the agent D) Principal can increase their outside options and strengthen their bargaining power Answer: C Page Ref: 222 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 33) Before meeting with a prospective agent, negotiators should take the time to prepare questions to ask the agent to test the accuracy of the principal negotiator's: A) reservation price B) BATNA C) target point D) interests and priorities Answer: A Page Ref: 224 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 34) Even if the negotiating parties who are seated at the negotiation table easily reach agreement, negotiators must still sell the agreement to internal constituencies within their organization. These internal constituencies can create ________ that may require formal or informal domestic ratification of the primary table's agreement. A) a voting paradox B) behind-the-table barriers C) the set effect D) a multiple audience problem Answer: B Page Ref: 226 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

35) In a negotiation, the decision makers who are accountable for their actions to a constituency consider relevant information and alternatives more carefully. However, accountable partisans can fall prey to ________ because they are motivated to reach a particular conclusion. A) conflicts of interest B) emotional detachment C) reciprocal trade-offs D) the fixed-pie assumption Answer: D Page Ref: 227 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 36) When negotiators are accountable to relevant others, they often become concerned with managing their impression and reputation. Thus, they tend to use face-saving strategies and endeavor to make their actions appear more favorable to their constituents. Negotiators who are accountable to constituents and want to save face are more likely to do all of the following, EXCEPT: A) make fewer concessions and use more aggressive negotiation strategies B) hold out for more favorable agreements C) maintain a tough bargaining stance D) increase use of automatic, heuristic methods of processing of information Answer: D Page Ref: 227-228 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 37) Negotiators who are responsible to constituents can take several different actions to improve their relationship with the constituency. One of these first steps is to improve communication; negotiation representatives need to understand their constituents' interests, not just their ________. Moreover, when constituents feel heard, they are less likely to ________. A) BATNAs; complain B) positions; take extreme action C) subgroup composition; cooperate D) demands; require accountability Answer: B Page Ref: 229 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

38) People have an easier time imagining how an individual might have done something better than imagining how a team might have done something better. This cognitive bias, also known as the ________, refers to the fact that teams tend not to be blamed for their negotiation failures as much as individuals do, holding constant the nature of the failure. A) pigpen problem B) team efficacy effect C) Abilene paradox D) team halo effect Answer: D Page Ref: 230 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 39) As negotiating teams grow in membership size, coordination problems increase. At some point conformity pressures increase with group size, peaking at about ________ people, and then leveling off in terms of effective productivity and impact. A) 15 B) 5 C) 10 D) 3 Answer: B Page Ref: 231 AACSB: Interpersonal relations and teamwork Difficulty: Easy 40) The presence of a team at the bargaining table increases the integrativeness of joint agreements. Team members should be chosen with care and their experience and expertise with each of the following necessary criteria should be carefully evaluated, EXCEPT: A) creative skills B) technical expertise C) interpersonal skills D) negotiation expertise Answer: A Page Ref: 231 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 41) Cohesive groups perform better at the bargaining table than less cohesive groups. All of the following criteria combine to create strong cohesion in a group, EXCEPT: A) the strength of positive relations within a team B) the sum of pressures acting to keep individuals in the group C) the by-product of competitive mindsets and a large group size D) the result of all forces acting on members to remain in the group Answer: C Page Ref: 232 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13 Copyright © 2020 Pearson Education, Inc.

42) How effective are teams at utilizing knowledge that is distributed among its members? Members of negotiating groups are not privy to the same facts and information. Thus, groups face a dilemma: ________, which can increase members' dependence upon each individual member, or ________, which can be clumsy and redundant. A) intergroup conversation; shared identity B) in-group bias; extremism C) equal status; common identity D) divide responsibility; share information Answer: D Page Ref: 232 AACSB: Interpersonal relations and teamwork Difficulty: Easy 43) When the members of a negotiating group evaluate a competitor to be less attractive on a number of organizationally relevant dimensions such as intelligence, competence, and trustworthiness, than members of their own group, they are engaging in: A) the tit-for-tat strategy B) downward social comparison C) the outgroup homogeneity bias D) forked tail effect Answer: B Page Ref: 235 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10.2 Discussion Questions 1) What are some of the problems with voting, specifically with majority rule? Consider the example in Exhibit 10-2. Explain the theorem underlying the problem these voters faced. Answer: A number of problems are associated with majority rule: It fails to recognize the strength of individual preferences; it hinders the development of mutually beneficial trade-offs; it does not encourage group members to consider creative alternatives to expand the size of the pie; it may be detrimental to the attainment of efficient outcomes because it prevents logrolling; it may lead to more distributive and less integrative behaviors; it may not yield a choice (even split); it does not eliminate conflicts of interest (instead, it provides a way for group members to live with them); and decisions may not be stable (voting hides disagreement within groups which threatens long-term effectiveness). The unstable voting outcomes in Exhibit 10-2 point to the impossibility theorem, which states that when groups contain three or more members and are facing three or more options, no method can combine group members' preferences in a way that guarantees group preference maximization. Page Ref: 211-212 AACSB: Interpersonal relations and teamwork Difficulty: Hard

2) What are some behavioral strategies for effectively navigating coalitions and maximizing coalitional effectiveness? Answer: Some strategies for maximizing coalitional effectiveness are: prioritize making contact with key parties early in the process of multiparty negotiation before they become committed to others; obtaining verbal commitments from people with whom you want in your coalition as most people feel obligated to follow through with promises they make to others; and finally, using an unbiased-appearing rationale to divide the pie. "Fairness" is the strongest determinant of a negotiator's satisfaction with the coalition's outcome and consequently, their willingness to follow through on their verbal commitments and not break away from the group. Page Ref: 220 AACSB: Interpersonal relations and teamwork Difficulty: Hard 3) What are the three different types of constituencies, and what are some of the challenges of these constituent relationships? Answer: The three different types of constituencies are: superiors, who have authority over principals; subordinates, who are under the authority of principals; and the constituency itself, the party whom the principal represents. Some of the challenges of constituent relationships are: 1.) even after coming to a deal with the counterparty, negotiators must then sell this deal to their own internal constituencies and these second parties may have formal or informal methods that domestically ratify the agreement; 2.) the accountability of the negotiators to the constituency 3.) the relationships that negotiators share across the bargaining table as well as with their constituents can create conflicts of interest for the group. Page Ref: 226-229 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) What are some strategies for improving constituent relationships? Answer: There are several strategies for improving constituent relationships: 1.) understanding constituents' real needs and interests not just their positions, 2.) the representatives need to be aware of the heterogeneity of views within the constituency, 3.) early on representatives need to clearly define their roles to their constituents and set realistic expectations, 4.) representatives should also help their constituents develop a sound BATNA and realistic expectations by engaging in horizon thinking. Page Ref: 226-229 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

5) Are teams of negotiators more or less effective than solo negotiators at exploiting integrative potential at the bargaining table? Why? Answer: The presence of at least one team at the bargaining table increases the size of the pie. Teams are effective at increasing the incidence of integrative agreements because the presence of a team leads all negotiators to exchange more information about their interests and priorities. With more information about both sides' interests and priorities, a negotiating team gains greater judgment accuracy about the counterparty's interests, which then promotes integrative agreements. In negotiations with integrative potential, teams outperform solos, however, in extremely competitive tasks, teams are more likely to behave in a competitive fashion. Page Ref: 230 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) What are the key challenges of multiparty negotiations? Answer: There are four key challenges of multiparty negotiations. The first of the key challenges of multiparty negotiations involves the dividing of resources. When multiple parties are at the bargaining table, each party advocates in a self-serving fashion for their own interests and each party has their own definition of what is fair. The second key difference between twoparty and group negotiations is the potential for individual parties to team up, pool their resources, and form coalitions that can have a greater influence on outcomes. The third key challenge to multiparty negotiations is how to formulate trade-offs and the risks associated with those concessions. Finally, groups often simplify the negotiation of multiple issues among multiple parties through voting and decision rules. However, if not used wisely, decision rules can thwart effective negotiation, both in terms of pie expansion and pie slicing. Page Ref: 209-210 AACSB: Interpersonal relations and teamwork Difficulty: Hard 7) Given that multiparty negotiations are complex and present special challenges, what are some of the strategies negotiators might use to enhance their ability to expand and slice the pie in a multiparty context? Answer: Some strategies that negotiators might use to enhance their ability to expand and slice the pie in a multiparty context are: know who will be at the table, manage information and systematize proposal making, brainstorm options, develop and assign process roles to group members, stay at the table when all parties need to reach agreement, strive for equal participation of information exchange, allow for some points of agreement (even if only on process), avoid the equal shares bias, avoid the agreement bias, and avoid sequential bargaining. Page Ref: 213-215 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

8) What advantages can be realized by using agents to represent one's interests? Answer: Several advantages can be realized by using agents to represent one's interests. First, agents usually have more expertise in the negotiation process. Second, agents may have more information than the principal about certain areas of expertise. Third, agents have access to networks of people and may have special influence in some situations. Fourth, agents can provide emotional detachment and tactical flexibility. Fifth, because an agent does not have the authority to make or accept offers, a principal can control the offers made or accepted by proxy. Finally, agents can provide a face-saving buffer for principals. Page Ref: .221 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) Principal-agent negotiations are problematic because a principal must negotiate a contract that incentivizes and motivates a risk-averse agent to undertake high-cost actions that cannot be observed by the principal. Despite the problematic nature of principal-agent relations, there are a best practices that a principal can do to work effectively with an agent—list three of these recommended strategies. Answer: There are several strategies for working effectively with agents. First, shop around for an agent—do not assume the first agent you meet is uniquely qualified to represent you. Ask the agent how they will successfully represent your interests, about what is expected of you, and what obligations you will have to one another. Second, do your homework before meeting with your agent—know your BATNA, know your reservation price, and prepare questions to ask your agent that will allow you to test the accuracy of your reservation price. Third, communicate your interests to the agent without revealing your reservation price. Fourth, capitalize on the agent's wealth of expertise, ask them about their key strategies for targeting opportunities for you and closing deals. Finally, tap into your agent's sources of information, affiliations and networks. If your agent is unwilling or unable to obtain information, interview another agent and see whether he or she can provide the information. Page Ref: .224-225 AACSB: Interpersonal relations and teamwork Difficulty: Hard 10) Before negotiating as a team, there are several recommended best practices for improving your team's negotiation experience and outcomes. List three of these recommendations and describe why each is positively effective. Answer: There are several recommended actions for a team preparing to negotiate. First, it is imperative that team members have shared goals and interests. A team that has aligned goals and strategies will have higher team identification and lower levels of task and relationship conflict. Second, negotiating teams should prepare together, which creates a transactive memory system in which group members understand the information others have and how and when to access that information. Third, negotiating teams should schedule breaks into their negotiations to allow team members to meet privately and discuss progress. Finally, it is important to assess the extent to which team members are accountable to others outside of the negotiating team. Page Ref: 232-234 AACSB: Interpersonal relations and teamwork Difficulty: Hard 17 Copyright © 2020 Pearson Education, Inc.

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 11 Cross-Cultural Negotiation 11.1 Multiple-Choice Questions 1) Which of the following best describes the differences between individualism and collectivism as cultural values in negotiation? A) Individualists focus on relationships; collectivists focus on money B) Individualists see themselves as autonomous entities; collectivists see themselves in relation to others C) Individualists prefer to work in groups; collectivists prefer to work alone D) Individualists are cooperative; collectivists are competitive Answer: B Page Ref: 244 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) Which of the following best describes the differences between egalitarianism and hierarchy as cultural values in negotiation? A) Egalitarian cultures divide things equally; hierarchical cultures divide things according to merit and status B) Egalitarian cultures treat people equally; hierarchical cultures discriminate among people C) Egalitarian cultures believe that status is permeable through effort and achievement; hierarchical cultures believe that superiors should take care of the needs of subordinates D) Egalitarian cultures communicate directly; hierarchical cultures communicate indirectly Answer: C Page Ref: 248 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Which of the following best describes the differences between direct and indirect communication with regard to culture and how it affects negotiation? A) Direct communicators express their intent in words; indirect communicators convey meaning and intention through story and inference B) Direct communicators address others by their first name; indirect communicators address others by their formal title C) Direct communicators always speak the truth; indirect communicators never say what they really mean D) Direct communicators are honest; indirect communicators often lie or misrepresent information Answer: A Page Ref: 253 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) One of the key challenges in intercultural negotiation is ethnocentrism, which refers to: A) genocide (i.e., the killing of people from different cultures) B) the unwarranted positive beliefs about one's own group relative to other groups C) separatism (i.e., the tendency for a culture to withdraw from other cultures and act independently) D) the blending of different cultures in a way that creates a "melting pot," or mix of different cultures Answer: B Page Ref: 261 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) If a person from Brazil is late for a negotiation with someone from the United States and the U.S. person concludes that the Brazilian negotiator is unreliable and disrespectful, such a belief may be due to people's tendency to: A) evaluate the other party's actions on the basis of their affiliations rather than on the merits or faults of the behavior itself B) apply the philosophy of mind rooted in a theory of perception that claims that the senses provide us with a direct awareness of the external world C) relegate the other party to an unimportant or powerless position within their group D) explain the causes of the other party's behavior in terms of their underlying disposition and discount situational factors Answer: D Page Ref: 262 AACSB: Interpersonal relations and teamwork Difficulty: Hard 6) Which of the following is an example of in-group favoritism in negotiation? A) The belief that the members of one's own group are better or more deserving than members of another group B) The belief that people should only be members of a single group and avoid joint membership C) A person works less hard when part of a group effort than they would individually D) A person interprets their interactions with their adversaries in an altruistic way Answer: A Page Ref: 245 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) Cultures differ with respect to their values and beliefs. In negotiation, sacred values refer to: A) the values prevalent in individualistic cultures B) the customs and beliefs that change frequently C) the beliefs that people regard to be so fundamental that they are not discussable or debatable D) the values that can make your counterparty highly competitive Answer: C Page Ref: 257-258 AACSB: Interpersonal relations and teamwork Difficulty: Easy 2 Copyright © 2020 Pearson Education, Inc.

8) Which of the following statements is most TRUE with regard to integrative negotiation as it pertains to culture? A) Members of western cultures are more adept and skilled at expanding the pie compared to members of eastern cultures B) Members of eastern cultures are more adept and skilled at claiming resources than members of western cultures C) Inter-cultural negotiation often yields higher joint gains than intra-cultural negotiation D) Intra-cultural negotiation often yields higher joint gains than inter-cultural negotiation Answer: C Page Ref: 257 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) With regard to cultural differences in negotiation, a prototype is best defined as: A) the recognition that members of a given culture might have a central tendency, but there is variation within the culture B) a belief that members of a given culture are largely all the same C) a scientific or technical invention that is in its initial form (i.e., before refinement) D) a form of belief prejudice Answer: A Page Ref: 241 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 10) Culture is defined as the personality of a group. A group who is concerned about how the results of their behaviors affect the other in-group members, share resources with in-group members, and feel interdependent with in-group members hold what type of cultural value? A) Individualism B) Egalitarianism C) Collectivism D) Dispositionalism Answer: C Page Ref: 244 AACSB: Interpersonal relations and teamwork Difficulty: Easy

11) One factor that can push negotiators to behave more in line with their native cultural values is accountability pressure, or the extent to which the negotiators are answerable for conducting themselves according to certain standards. Which of the following is the best example of how accountability pressure affects negotiating groups from collectivistic cultures? A) Group members become concerned they will be held accountable to a strict standard of fairness and focus on finding a way to split the available resources equally B) Group members are motivated to use more pro-relationship strategies when the counterparty is also from their same culture C) Group members become more blunt and direct in their communications with the counterparty D) Knowing they are accountable for their actions, the group is very careful not to use any ethically questionable negotiation tactics, especially with counterparties from other cultures Answer: B Page Ref: 249 AACSB: Interpersonal relations and teamwork Difficulty: Hard 12) Traditional Chinese businesspeople tend to build trust networks typically based on familial lines, making it difficult for outsiders to enter into these networks. What term best describes this type of relationship culture? A) Social networks B) Dispositionalism C) Egalitarianism D) Guanxi networks Answer: D Page Ref: 252 AACSB: Interpersonal relations and teamwork Difficulty: Easy 13) People from individualistic cultures are more likely to remember situations in which they ________, whereas people from a collectivistic cultures are more likely to remember situations in which they ________. A) influenced others; adjusted to others B) felt related to the other party; felt effective C) lost; won D) sacrificed personal interests; found affiliation with another party Answer: A Page Ref: 245 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

14) You are waiting for a phone call from the counterparty to continue your discussion from yesterday's meeting and he or she is thirty minutes late in calling you. Which of the following explanations for tardiness is an example of dispositionalism? A) Because he or she was in another meeting B) Because he or she had automobile trouble C) Because he or she is irresponsible D) Because he or she never saw your text message Answer: C Page Ref: 266 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) When it comes to resolving conflict, managers from hierarchical cultures prefer: A) to regulate behavior via public shaming B) an interests model that relies on resolving underlying conflicts C) to attribute a disagreeable person's behavior to an underlying disposition and desire formal dispute resolution procedures D) to defer to a higher-status person Answer: D Page Ref: 250 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 16) With regard to resolving conflict in collectivistic cultures, what statement is most TRUE? A) Conflict between members of the same social rank is more likely to be handled by deference to a superior than by direct confrontation between social equals B) Disputants prefer to use a random-device, such as a coin-toss, to resolve disputes C) The disputants prefer to involve attorneys to make legal arguments on their behalf D) Disputants see each other as equals and openly and directly address each other in order to resolve a dispute Answer: A Page Ref: 248 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 17) Dispute resolution preferences vary from culture to culture. One of the most pervasive ways negotiators from indirect cultures communicate their disapproval is: A) by fining the offender B) by shaming the offender C) by telling the offender what he or she did wrong D) yelling at the offender Answer: B Page Ref: 250 AACSB: Interpersonal relations and teamwork Difficulty: Easy

18) Negotiators have more difficulty expanding the pie when negotiating across cultures than within a culture. One reason for this is because it is difficult for negotiators to resolve conflicts that involve ________, or the fundamental values and beliefs that form the basis of a group's or culture's belief system. A) taboo trade-offs B) stifling values C) sacred values D) fixed knowledge Answer: C Page Ref: 257-258 AACSB: Interpersonal relations and teamwork Difficulty: Easy 19) When football fans watch a game, they believe the other side commits more infractions on the field than does their own team. This favoritism can best be termed: A) the affiliation bias B) ethnocentrism C) marginalization D) the fundamental attribution error Answer: A Page Ref: 261 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 20) Several types of dispute resolution procedures characterize how different cultures resolve disputes. In a procedure called ________, disputants retain full control over the final negotiated decision, but a third party guides the negotiation process. A) bargaining B) mediation C) adversarial adjudication D) inquisitorial adjudication Answer: B Page Ref: 249 AACSB: Interpersonal relations and teamwork Difficulty: Easy 21) In some cases, intercultural negotiations may fail, not because negotiators stay anchored to their own cultural assumptions and styles, but rather because they try to adjust to their counterparty's cultural assumptions about negotiating, also known as: A) an attribution error B) the quality of communication experience C) naïve realism D) schematic overcompensation Answer: D Page Ref: 268 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6 Copyright © 2020 Pearson Education, Inc.

22) The personality and unique character of a social group is best known as its ________ and includes the values and norms shared by its members and encompasses the structure of its social, political, economic, and religious institutions. A) group potency B) group stereotype C) group identity D) culture Answer: D Page Ref: 241 AACSB: Interpersonal relations and teamwork Difficulty: Easy 23) Exhibit 11-2 reveals where different countries are positioned in terms of their culture's degree of individualism and power distance. The matrix position of countries like the United States, Great Britain and Australia would: A) be similarly positioned to countries like Guatemala, Iran, and China B) be high in collectivism and high in power distance C) be highly individualistic, low in power distance D) be low in cultural intelligence and high in independence Answer: C Page Ref: 247 AACSB: Interpersonal relations and teamwork Difficulty: Easy 24) One model of culture is based on a tripartite model of three cultural prototypes: face, dignity, and honor. People in high ________ cultures seek to maintain group harmony and not insult others. Communication in these cultures is highly context dependent, meaning that people do not bluntly make requests or demands, but rather signal information subtly. A) relational B) face C) dignity D) honor Answer: B Page Ref: 251-253 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

25) People in high ________ cultures openly express their ideas, are more emotionally expressive, and would endorse statements such as, "People must always be ready to defend their reputation", and "If a person gets insulted and they don't respond, they will look weak." A) relational B) face C) dignity D) honor Answer: D Page Ref: 255 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 26) A business team based in France refuses to negotiate with a potential supplier based in Russia because they believe that the people and businesses in the supplier's country are untrustworthy, hostile, and arrogant compared to the friendly, trustworthy, and humble people and businesses in their country. This biased belief is best called: A) collective narcissism B) implicit group metafavoritism C) ethnocentrism D) fundamental attribution error Answer: C Page Ref: 261 AACSB: Interpersonal relations and teamwork Difficulty: Easy 27) Because a negotiator cannot expect to negotiate only with people of their own country or culture throughout their career, cultural intelligence is an important skill to develop. Cultural intelligence in negotiators predicts: A) the extent to which negotiators will engage in integrative behaviors and maximize joint profits in intercultural negotiations B) their ability to reliability anticipate motivational clashes at the bargaining table C) their capability to build trust within their team D) the average number of proposals they will offer the counterparty Answer: A Page Ref: 263 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

28) When learning about a culture, a person can observe the cultural traits of a handful of people and form a ________, which is a generalized and usually faulty belief that everyone from a given culture is the same. A) prototype B) stereotype C) halo bias D) fundamental attribution error Answer: B Page Ref: 241 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 29) Airbnb hosts in Japan deliberately keep quiet about their involvement with the online bed and breakfast site, concerned that their neighbors might have one negative interaction with a foreigner—wearing shoes where they are not allowed, talking on a cell phone in an apartment building lobby, or children laughing and playing in the garden—that might lead to problems with their landlord or police. This example of a conservative cultural outlook on behavior norms makes Japanese culture a ________ culture. A) loose B) dignity C) honor D) tight Answer: D Page Ref: 256 AACSB: Interpersonal relations and teamwork Difficulty: Easy 30) When assessing cultural intelligence, there are four factors that are considered when looking at behavior, awareness, and knowledge. Which of the following factors reflects a person's selfefficacy to adjust to different cultures? A) Metacognitive CQ B) Cognitive CQ C) Motivational CQ D) Behavioral CQ Answer: C Page Ref: 263-264 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

31) Cultural intelligence is made up of several factors, one of which focuses on a person's intelligence to be cognizant of the appropriate times to modify their verbal and non-verbal behavior. A person with this type of cultural intelligence would endorse statements such as: "I change my use of pause and silence to suit different cultural situations", and "I modify how close or far apart I stand when interacting with people from different cultures". A) Metacognitive CQ B) Cognitive CQ C) Motivational CQ D) Behavioral CQ Answer: D Page Ref: 263-264 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 32) Cultural awareness of one's own and others' values is the first step toward becoming an effective multicultural negotiator. People have four behavior choices when it comes to interacting with someone from a different culture. Each of the following are one of these behavior choices, EXCEPT: A) integration B) consistency C) assimilation D) separation Answer: B Page Ref: 271 AACSB: Interpersonal relations and teamwork Difficulty: Easy 33) Saving face and giving face are important in face cultures. The concept of saving another person's face is associated with all of the following behaviors, EXCEPT: A) apologizing B) flattery C) assertive, defensive posturing D) remaining calm Answer: C Page Ref: 251 AACSB: Interpersonal relations and teamwork Difficulty: Easy

34) Negotiation behaviors are a continuous stream of cause-and-effect relationships in which each person's actions influence the actions of others. The ________ occurs when people interpret interactions with their adversaries in self-serving and other-derogating terms. A) causal chunking B) affiliation bias C) ethnocentrism D) biased punctuation of conflict Answer: D Page Ref: 260 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 35) During World War II, the Nazis heavily bombed British cities with the intent of causing both psychological and physical damage to the British people's will to resist. The bombings had the opposite effect—the British resolve to resist German domination strengthened rather than diminished. This example points to important differences in countries' perceptions of what will be effective in motivating an enemy, as individuals view ________ as more effective with our enemies than with ourselves, whereas ________ is viewed as more effective with ourselves than with our enemies. A) coercion; conciliation B) conciliation; coercion C) temptation; flattery D) flattery; temptation Answer: A Page Ref: 262 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 36) When negotiating with members of ________ cultures, be prepared to present information about the power of your company and the renown of its products, even if you think such information should have no bearing on the outcome. In failing to make a presentation comparable to the one made by the negotiators from that culture, negotiators risk appearing weak. A) loose B) collectivistic C) hierarchical D) low-power distance Answer: C Page Ref: 266 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

37) Suppose you are in the midst of a high-stakes negotiation, and you place an urgent call to your negotiation partner. Your partner does not return your call, yet you know your partner is in town. What is causing your partner's behavior? If you are from a/n ________ culture, you are more likely to view the cause of your partner's behavior from a/n ________ point of view. A) face; emotional B) individualistic; dispositional C) collectivistic; passive D) honor; fixed-pie Answer: B Page Ref: 267 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 38) Negotiators should not assume that the other culture will have the same customs as one's own culture. This is why one of the most important preparatory steps a negotiator can take when commencing intercultural negotiation is to find out how to show________ in the other culture. A) humor B) kindness C) respect D) anger Answer: C Page Ref: 268 AACSB: Interpersonal relations and teamwork Difficulty: Easy 39) Negotiators who identify with dignity culture norms are likely to endorse which of the following viewpoints? A) "People should stand up for what they believe in, even when others disagree." B) "If a person gets insulted and they don't respond, they will look weak." C) "People should be very humble to maintain good relationships." D) "People should control their behavior in front of others." Answer: A Page Ref: 254 AACSB: Interpersonal relations and teamwork Difficulty: Easy

11.2 Discussion Questions 1) Consider the "iceberg model" of culture in Exhibit 11-1. How does this model help us understand the challenges of cross-cultural negotiation problems? Answer: The "tip of the iceberg" is an expression of the fundamental values that remain invisible below the surface of the cultural "water". The "above the water" portion of the cultural "iceberg" represents the behaviors, artifacts, and institutions that characterize a culture. This portion includes traditions, customs, habits, and other immediately visible stimuli. These behaviors and artifacts are an expression of deeper-held values, beliefs, and norms. Driving these values and norms are fundamental assumptions about the world and humanity. The artifacts and customs that characterize a culture are not arbitrary but are manifestations of the culture's fundamental values and beliefs about the world. Page Ref: 242 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) What are some key differences between individualistic and collectivistic cultural values? What are the implications for negotiation? Answer: People in individualistic cultures give priority to their own gain, even when it conflicts with that of their group. In collectivistic cultures, the dominant motive is belonging to the group and focusing on social relationships. In negotiations, individualists attribute a disagreeable person's behavior to an underlying disposition and desire more formal dispute resolution procedures; collectivists are more likely to ascribe behavior to situational factors and prefer informal procedures. Page Ref: 244-248 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) Consider Exhibit 11-2. How is power distance related to individualism and collectivism? Answer: In Exhibit 11-2, countries high in individualism and low-power distance are related and countries that are collectivistic are correlated with high-power distance. Page Ref: 242-244 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

4) How do the differences between direct and indirect communication cultures affect how negotiators share information? Answer: Getting information out on the table is critical for expanding the pie; it is insufficient to rely on context alone to convey the information necessary to craft integrative agreements. Cultures that use direct information-sharing strategies, or a combination of direct and indirect strategies, reach the most integrative, pie-expanding agreements. In direct cultures, the process of deal making comes first; in other cultures, the relationship comes first and provides the context for making deals. Because indirect communication requires more complex and subtle communication skills, direct communicators often find it difficult or impossible to communicate effectively; but indirect communicators can be direct when they need to be. Page Ref: 254 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 5) What are some examples of acceptable versus taboo trade-offs in negotiation? How does the taboo trade-off principle operate within systems of sacred and secular values? Answer: Proposals to exchange sacred values (e.g., human life, familial obligations, national honor) for secular ones (e.g., money, time, or convenience) constitute taboo trade-offs. Given the inherently sacred values that operate in many countries, the familiar notions of trading and logrolling, so important to interests-based negotiations are likely to be considered unacceptable and reprehensible to members of different cultures. The extent to which sacred issues negatively influence negotiations depends on the BATNAs of the parties. When parties have strong BATNAs, sacred issues produce impasses, lower joint outcomes, and increase negative perceptions; however, when negotiators do not have attractive BATNAs, they can't afford to stand on principle. Page Ref: 259 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) A key cultural distinction is that between tight and loose cultures. Tight-loose refers to the degree to which cultural institutions control people's behavior and how much variability there are in people's behaviors in a given culture. Give examples of tight versus loose cultures and describe how each type of culture accepts norm flexibility. In addition, discuss the implications for negotiators from loose cultural rules trying to adapt to tight cultural rules. Answer: Tight-loose refers to the degree to which cultural institutions control people's behavior and how much variability there are in people's behaviors in a given culture. Consider greeting behavior in a loose culture such as New Zealand. In this loose culture, there is a lot of variability in greetings: negotiators may shake hands, hug, kiss, do a "fist-bump", or something else. In tight cultures, such as Japan, there is not much variability and negotiators need to follow established norms. Because loose cultures do not have defined expectations, it is relatively easy for members of tight cultures to enter into loose cultures; however, the reverse is not true: members of loose cultures are at social risk when they attempt to negotiate in a tight culture because they may unwittingly make cultural mistakes. Page Ref: 256 AACSB: Interpersonal relations and teamwork Difficulty: Hard 14 Copyright © 2020 Pearson Education, Inc.

7) Why do negotiators have more difficulty expanding the pie when negotiating across cultures than within a culture? Answer: A key reason why negotiators have more difficulty expanding the pie when negotiating across cultures than within a culture is the degree to which parties understand the counterparty's respective priorities and the opportunities for exploiting compatible issues. In cross-cultural negotiations, negotiators' bargaining styles do not match, meaning they have less understanding of the counterparty's priorities and consequently do not create as much value. Each culture expects the other culture to adopt its own style of negotiating. Page Ref: 257 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 8) There are important differences in negotiator's perceptions of what will be effective in motivating a counterparty and what will be effective in motivating themselves. Coercion is viewed as more effective with a counterparty, whereas conciliation is viewed as more effective with ourselves. Why does this unfortunate perception occur? Answer: Three key reasons can explain why negotiators view coercion as a more effective tactic with a counterparty than with themselves. A preference for punitive strategies with one's enemies may reflect a desire to inflict injury or pain, as well as a desire to influence behavior in a particular direction. The relative preference for punishment is based on an incompatible desire to both injure and modify the behavior of the enemy. Alternatively, people may be inclined to use more coercive strategies with a counterparty because the appearance of toughness conveys information about their motives and intentions, which in the long run may bring about the desired result. Finally, the mere creation of mutually exclusive, exhaustive social categories leads to different assumptions about members of such groups: more favorable attributes are assigned to in-group than to out-group members. Page Ref: 262 AACSB: Interpersonal relations and teamwork Difficulty: Hard

9) Global negotiations are characterized by differences that emerge at interpersonal behavioral levels and are manifestations of more deep-seated societal and institutional differences. Negotiators should avoid arguing about the inherent legitimacy of a social system and instead focus on understanding at the interpersonal level. What are some suggested strategies for negotiators to improve their cross-cultural effectiveness? Answer: There are a number of strategies that are recommended ways to improve cross-cultural negotiation effectiveness. Some general behaviors are openness to different points of view, showing an interest in the host culture, having a task orientation, showing cultural flexibility, demonstrating a willingness to communicate, and improving one's skills in collaborative conflict resolution. Some negotiation-specific behaviors that can improve cross-cultural negotiation effectiveness are: to identify differences in interests, preferences, and priorities; look for ways to leverage differences; frequently ask questions; enter into the negotiation understanding the norms for negotiation; and to understand the role of government and all constituents. Finally, the traits and attitudes that a negotiator can have that will improve cross-cultural negotiation are first and foremost, a sense of humor, as well as empathy, sociability, patience, a critical acceptance of stereotypes, and the ability for conceptual complexity. Page Ref: 265 AACSB: Interpersonal relations and teamwork Difficulty: Hard 10) In individualistic cultures, the pursuit of happiness and regard for personal welfare are paramount. Consequently, individual accomplishments are rewarded by economic and social institutions. What is one implication of individualism regarding the use of value-claiming tactics in negotiation? Answer: One implication of individualism concerns the use of value-claiming tactics—people who are more self-interested (individualistic negotiators) are motivated to use tactics that increase their bargaining power. United States based negotiators are more accepting of competitive bargaining tactics and bluffing, which raises the possibility that negotiators in the U.S. may be perceived as less ethical by their international counterparts. Page Ref: 244 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

The Mind and Heart of the Negotiator, 7e (Thompson) Chapter 12 Negotiating in a Virtual World 12.1 Multiple-Choice Questions 1) In terms of using information technology for social interactions, the "weak get strong" effect refers to the fact that: A) people who might not have much influence or status in a face-to-face setting have more power when communicating in an electronic forum B) people who make an extreme first offer hardly ever receive that offer and must back down four times as often C) making a strong initial offer, regardless of one's actual BATNA, is more strategic than making a moderate first offer D) people behave in a more aggressive fashion when interacting via information technology Answer: A Page Ref: 284 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) When it comes to risk taking in negotiation, such as choosing between a risk-averse course of action and a risk-seeking course of action, which of the following statements is most TRUE? A) People are risk averse for losses and risk seeking for gains B) Groups who make decisions via e-communication are risk seeking for both gains and losses C) There is no discernable difference in risk-taking behavior between face-to-face interactions versus electronically-mediated groups D) People are initially more risk averse when interacting electronically, and then over time, grow to be risk-seeking Answer: B Page Ref: 286 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 3) According to the place-time model of social interaction, the richest form of communication occurs when negotiators communicate face-to-face and have which channels of communication available to them? A) Linguistic B) Paralinguistic, linguistic C) Visual, paralinguistic, linguistic D) Linguistic, paralinguistic, visual, and kinetic Answer: D Page Ref: 273-275 AACSB: Interpersonal relations and teamwork Difficulty: Easy

4) Regarding information technology's effects on negotiation performance, enhanced enegotiations are those in which negotiators attempt to personalize or enrich the interaction. All of the following are true with regard to enhancing e-negotiations, EXCEPT: A) a brief, personal disclosure over e-mail increases the likelihood of an impasse B) a brief, personal disclosure over e-mail reduces the likelihood of impasse C) a brief telephone call prior to e-negotiations improves joint outcomes D) a brief telephone call prior to e-negotiations increases trust Answer: A Page Ref: 282 AACSB: Interpersonal relations and teamwork Difficulty: Easy 5) "Flaming" or acting rudely toward others in negotiation occurs more frequently through email than in face-to-face interactions because: A) people feel more status competition when interacting face-to-face B) social context cues are missing or weak and people feel somewhat anonymous C) people are more likely to seek revenge face-to-face than they are by interfacing electronically D) people are under the influence of superrationality when interacting electronically Answer: B Page Ref: 280-281 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 6) The sinister attribution bias in negotiation refers to the tendency of people to: A) attribute malevolent behavior motives to people B) assume that a negative situation influences a person's behavior much more than their personality C) believe that someone's personality influences their behavior much more than the situation D) be more likely to engage in risky behavior through e-mail than when face-to-face Answer: A Page Ref: 281 AACSB: Interpersonal relations and teamwork Difficulty: Easy 7) With regard to schmoozing and social interaction in e-negotiations, all of the following are true, EXCEPT: A) schmoozing leads to both parties developing more realistic goals B) schmoozing involves social interactions that are non-task-related C) schmoozing is a relatively low cost and efficient means of building rapport D) schmoozing done before negotiations take place is risky and increases the likelihood of an impasse Answer: D Page Ref: 292-293 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

8) Which of the following methods is recommended for enhancing technology-mediated negotiations? A) Immediately getting down to business by starting to negotiate B) Serious, sober behavior and attitude during negotiations C) An initial face-to-face experience D) A phone call with the counterparty after an agreement is negotiated Answer: C Page Ref: 291-293 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) According to the place-time model of social interaction, ________ is the potential information-carrying capacity of social interaction medium. A) framing effect B) reciprocity C) emotional intelligence D) richness Answer: D Page Ref: 273 AACSB: Interpersonal relations and teamwork Difficulty: Easy 10) What information do people primarily rely upon in face-to-face negotiation that makes it such a rich and preferred method of communication? A) The pace of the conversation B) Shared interests C) The vocabulary used D) Nonverbal signals Answer: D Page Ref: 276 AACSB: Interpersonal relations and teamwork Difficulty: Easy 11) When communicating in different places and at different times, the ________ is the tendency for negotiators to behave as if they are communicating synchronously when in fact, they are not. A) 11th hour negotiation effect B) framing effect C) temporal synchrony bias D) fundamental attribution error Answer: C Page Ref: 279 AACSB: Interpersonal relations and teamwork Difficulty: Easy

12) Regarding perceptions that can occur when negotiating in different places and at different times, the continuation norm in e-negotiations is best described as: A) the act of thinking about how things might have turned out differently B) negotiators' beliefs that negotiations are worth continuing C) the tendency for e-communicators to ascribe diabolical intentions to the other party D) the tendency for negotiators to behave as if they are communicating synchronously when in fact they are not Answer: B Page Ref: 280 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 13) In which of the following communication mediums are negotiators most likely to misrepresent themselves and deceive others? A) E-mail B) Face-to-face C) Video-conference D) Handwritten letter Answer: A Page Ref: 284 AACSB: Interpersonal relations and teamwork Difficulty: Easy 14) In any discussion or meeting, there is a tendency for a minority of people to do most of the talking. A key determinant of who dominates the conversation is: A) their age B) their status within the group C) their gender D) their network of social connections Answer: B Page Ref: 284 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 15) If a negotiator has less power than the counterparty and an unattractive BATNA, which communication medium might help the less-powerful negotiator claim more resources? A) Telephone B) E-mail C) Instant messaging D) Face-to-face Answer: B Page Ref: 285 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

16) With regard to intergenerational negotiation, the ________ generation has vast numbers of relationships, but few of them are deep. They spend more time communicating virtually than face-to-face. Their personal and work networks are vital to their on-the-fly learning and problem solving skills. Armed with tools for working anywhere at any time, this generation puts more value in leading a balanced life and flexibility with their work and life demands. A) Boomer B) Generation X C) Mature D) Millennial Answer: D Page Ref: 289-290, Ex. 12-5 AACSB: Interpersonal relations and teamwork Difficulty: Easy 17) If a manager wants to assemble a working group for a long, complex negotiation, what is the best communication structure for the team? A) Written communication B) Initially face-to-face, then virtual C) Virtual, then face-to-face D) Virtual and e-communications exclusively Answer: B Page Ref: 291 AACSB: Interpersonal relations and teamwork Difficulty: Easy 18) With regard to inter-generational negotiation, people hold different values. The ________ generation holds values such as personal sacrifice, persistence, and setting aside self-interest as vitally important. This generation prefers to communicate face-to-face and imparts great faith in a person's spoken word. A) Boomer B) Millennial C) Generation X D) Mature Answer: D Page Ref: 289-290 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

19) Building trust and rapport is critical for negotiation success. The more the face-to-face contact between negotiators and the greater the rapport, the greater the likelihood of: A) integrative outcomes B) risk taking C) task conflict D) gain framing Answer: A Page Ref: 287 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 20) The U.S. generation born approximately at the end of World War II up to 1964 are traditionally called the "Baby Boom" or "Boomer" generation. As negotiators, one of their main beliefs is: A) that personal sacrifice in negotiation is necessary B) to avoid direct confrontation—negotiate virtually whenever possible C) that everything is negotiable D) that a negotiator must set aside their personal interests when negotiating Answer: C Page Ref: 290, Ex. 12-5 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 21) In face-to-face negotiations, negotiators can make an impact in a negotiation by eye contract, hand gestures, choices of clothing, jewelry, and seating choice at the table. These impactful behaviors are best known as: A) nonverbal communication B) kinetic behavior C) emblems D) paraverbal behavior Answer: A Page Ref: 276 AACSB: Interpersonal relations and teamwork Difficulty: Easy 22) Conversational turn-taking makes the process of negotiation seem smoother and more natural, but it also serves an important informational function which is: A) allowing one party to establish control over the negotiation B) reducing the risk of the flaming bias C) allowing side-deals to be made D) allowing negotiators to immediately correct misunderstandings Answer: D Page Ref: 280 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

23) In a negotiation situation that has missing or weak social context cues, all of the following are likely to occur, EXCEPT: A) negotiators are less concerned about making a good impression B) humorous remarks can be misinterpreted C) the expression of negative emotions are minimized D) people feel distant from others and somewhat anonymous Answer: C Page Ref: 281 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 24) Are there any exceptions to the general advantage of face-to-face negotiations? When negotiators communicate in a text-based, electronically-mediated mode with each other, all of the following were outcomes experienced by those negotiators, EXCEPT: A) low relational satisfaction with the interaction B) developed lower, more realistic aspirations C) similar individual profit was achieved D) use of more explicit relationship-building communication Answer: A Page Ref: 275 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 25) Which of the following situations would be the best predictor of a high incidence rate and high frequency of face-to-face communications? A) Negotiators share similar social networks B) Negotiators are members of the same athletic club C) Negotiators are on the phone with each other multiple times a day D) Negotiators work in the same office, on the same floor Answer: D Page Ref: 275 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 26) One of the key biases in different place, different time negotiations is activated when there is a lack of visual information, increased spatial distance, and a reduced anticipation of retaliation by the counterparty. This bias is best known as: A) the continuation norm B) the exit bias C) the flaming bias D) sinister attribution bias Answer: B Page Ref: 280 AACSB: Interpersonal relations and teamwork Difficulty: Easy

27) The factors that keep people from expressing negative emotions are not in place when negotiators communicate via information technology. Conversely, negotiators in face-to-face negotiations often follow ________, which helps to build trust and rapport. A) punitive laws B) a flattery ritual C) politeness rituals D) their leadership's directives about premature concessions Answer: C Page Ref: 281 AACSB: Interpersonal relations and teamwork Difficulty: Easy 28) Walk into any classroom, lunch discussion, or business meeting and it will be immediately obvious that one person in a small group does most of the talking. Expanding this further, in a typical six-person group, three people do over ________ of the talking. A) 40% B) 50% C) 60% D) 70% Answer: D Page Ref: 284 AACSB: Interpersonal relations and teamwork Difficulty: Easy 29) People are more willing to lie when communicating via e-mail, rather than by pen and paper, and feel more justified in doing so. This tendency can best be explained by the moral engagement theory, which proposes that: A) we observe ourselves in the same manner that we observe others, and draw conclusions about our likes and dislikes B) people are more likely to misrepresent and deceive others when they are not face-to-face, regardless of whether they believe their lie might be discovered C) human relationships are based on rational choice and cost-benefit analyses D) people have a motivation to defend and bolster the status quo Answer: B Page Ref: 284 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

30) Regarding the effects of status and power on virtual negotiations, in electronic versus faceto-face negotiations it is likely that the amount of participation in the group will be ________ in e-negotiations and the contributions of the group members to the e-negotiation will be ________. A) more; less B) enthusiastic; minimized by the leader C) less; more equalized D) contentious; polarized Answer: C Page Ref: 285 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 31) In an examination of how visual channels, vocal channels, and synchronicity can influence negotiation outcomes, the communication orientation model proposes that richer communication channels ________ high-quality outcomes for negotiations with a/n ________ orientation and that negotiating via e-mail is best for negotiators with a ________ orientation. A) increase; neutral; noncooperative B) do not effect; noncooperative; neutral C) increase; collectivistic; individualistic D) decrease; individualistic; collectivistic Answer: A Page Ref: 287 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 32) Often, negotiators do not have the luxury of face-to-face meetings for the duration of their negotiations. Under such circumstances, one of the best ways to enhance the success of a technology-mediated negotiation, and one that is most within the control of the negotiator, is: A) a post-negotiation face-to-face experience B) increased social collisions C) reactive medium management D) anticipating the limitations of the technology being used Answer: D Page Ref: 293 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

12.2 Discussion Questions 1) Consider the place-time model of social interaction and the psychological distancing model (Exhibits 12-1 and 12-2). Why is face-to-face communication the "richest" mode of communication, and what are some of the inherent advantages to negotiating in a face-to-face fashion? Answer: Face-to-face communication is the richest mode of communication because it has the highest potential information-carrying capacity of the communication mediums. People have a natural tendency to rely on nonverbal communication cues, and face-to-face communication allows for the simultaneous observation of multiple cues including body language, facial expression, and tone of voice, providing people with a greater awareness of context. Face-to-face communication foster the development of interpersonal synchrony and rapport and leads to more trusting, cooperative behavior. Page Ref: 274-276 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 2) How do norms, roles, and status change as a function of interaction via electronic media? What social dynamics come into play when negotiating via technology? Answer: Norms, roles, and status change as a function of interaction via electronic media because the traditional cues about someone's status and authority as well as the dynamic cues about influence are not as evident in this communication medium. Negotiators in traditionally weak positions become more powerful when negotiating via information technology because status cues are harder to read. The absence of these cues leads people to respond more openly and less hesitatingly than in face-to-face interactions. Messages are likely to display less social awareness, less politeness, less concern for others, and may be too blunt. Page Ref: 284-285 AACSB: Interpersonal relations and teamwork Difficulty: Hard

3) What are the positive and negative implications for electronic negotiation? Does information technology hurt or hinder the ability of negotiators to "expand the pie" of resources in a negotiation? Answer: The likelihood of reaching a mutually profitable negotiation (and avoiding impasse) is a function of the richness of the communication. Thus, negotiators who communicate face-toface are more likely to reach deals and avoid impasse than are e-negotiators. The biggest threat to effective negotiation in non—face-to-face settings is the loss of rapport and the tendency for people to be less conscious of social norms. Negotiators who communicate electronically report less desire for future relationships with the counterparty, less confidence in their performance, and less overall satisfaction. In e-negotiations, negotiators are faced with the mysterious task of interpreting impoverished communication without the opportunity for clarification. Thus enegotiators are forced to make more assumptions than face-to-face negotiators. If a negotiator has a strong bargaining position, face-to-face interaction is ideal; if they have a weak bargaining position, impoverished media can provide an important buffer. When face-to-face negotiations were compared with computer-mediated negotiations, the computer-mediated outcomes were equally or more integrative than were face-to-face outcomes. Regarding "expanding the pie," there are mixed results, with some investigations finding that face-to-face negotiation results in better joint profits; other studies indicate that there are no differences. Page Ref: 280, 282-283 AACSB: Interpersonal relations and teamwork Difficulty: Hard 4) What are some strategies for enhancing technology-mediated negotiations? Answer: Some strategies for enhancing technology-mediated negotiations include: an initial face-to-face experience so that negotiators can establish social norms and rapport; a one-day videoconference for negotiators who cannot meet face-to-face; schmoozing; taking thoughtful responsibility for the limitations of the chosen communication medium; and finally, finding a way to use appropriate humor early in the negotiation. Something as simple as a brief telephone call prior to e-negotiation improves joint outcomes and increases cooperation and relationship quality. Page Ref: 291-293 AACSB: Interpersonal relations and teamwork Difficulty: Moderate

5) Why is face-to-face negotiation the preference of many negotiators? How do generational differences affect a negotiator's choice of communication medium? Answer: Face-to-face negotiation is the clear preference of most negotiators for several reasons. Face-to-face contact is crucial in the initiation of relationships and collaboration. Face-to-face negotiations are particularly important when negotiators meet for the first time, when norms of interaction are established. Negotiators are more cooperative when interacting face-to-face than over the telephone. Face-to-face communication fosters the development of interpersonal synchrony and rapport and thus leads to more trusting, cooperative behavior. Face-to-face negotiators reach more integrative outcomes and more balanced distributions of surplus than by writing-only or telephone negotiations. Older generations are more comfortable with face-to-face communication as a communication medium, as a handshake and the promise it means between people of older generations carries much importance. Younger generations have grown up with a plethora of communication choices but overwhelmingly prefer to communicate virtually both personally and professionally. Page Ref: 274-276, 288-289 AACSB: Interpersonal relations and teamwork Difficulty: Hard 6) What are the four main challenges with same time, different place negotiations? Answer: The four key challenges to same time, different place negotiations are: a loss of informal communication because of a lack of social collisions between people, lost opportunities for chance encounters that could lead to entrepreneurial joint ventures, reductions in opportunities to give and receive corrective feedback about projects, and lastly the challenges that the use of instant messaging during negotiations can have on the counterparty's concessions. Page Ref: 276-279 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 7) How does our increased reliance in e-communications as a communication medium affect a negotiator's mental state and social behavior? Answer: When technological change creates new social situations, people invent new ways of behaving. When people interact with computer technology, there is less activation of the brain regions associated with mentalizing or the inference of other people's mental states. This suggests that people might think and behave differently depending upon whether they believe they are interacting with a human or computer. When we use information technology, we "talk" to other people, but we do so alone. As a result, our messages are likely to display less social awareness. The advantage is that social posturing and sycophancy decline. The disadvantage is that politeness and concern for others also decline. The plain text and perceived ephemerality of e-messages make it relatively easy for a person to forget or ignore their audience and consequently send messages that ignore social boundaries, disclose the self, and are too blunt. Page Ref: 288 AACSB: Interpersonal relations and teamwork Difficulty: Hard

8) Negotiations that take place at the same time, but in different places have a number of challenges to overcome. However, distance does not have to be a liability for negotiators. How can physical distance be an advantage in negotiations? Answer: Physical distance does not have to be a liability for negotiators. The formality of a scheduled phone meeting may compel parties to better prepare for the negotiation. Distance also creates a "buffer zone" between parties, meaning it might be a good thing if one party does not see the other party rolling their eyes or shaking their head disapprovingly. Moreover, people are more likely to assume that the behavior of task group members is driven by common goals for physically distant groups, rather than near groups. Page Ref: 278 AACSB: Interpersonal relations and teamwork Difficulty: Moderate 9) Negotiating in a different place and at a different time can be beneficial. What type of negotiator can be at an advantage in this type of negotiation situation and why? Answer: Negotiating in a different time and place can be beneficial. For example, women consistently do better when they negotiate virtually. Women are more assertive when they aren't haggling face-to-face because these virtual negotiations with a car dealer eliminated the status markers and gender biases and reduced the pressure on the woman to make a purchase decision or to demonstrate socially "gender appropriate" behavior when negotiating. Virtual settings upset established hierarchies, conferring more favorable outcomes to those with less power. Page Ref: 279 AACSB: Interpersonal relations and teamwork Difficulty: Hard 10) In addition to affecting negotiated outcomes, information technology has an extremely powerful effect on social behavior. It has been shown that people bring different expectations to electronic bargaining than to face-to-face negotiations. Are negotiators who negotiate electronically more or less satisfied, confident, or trusting post negotiation? Answer: Regarding information technology and its effects on social behavior, people who negotiate online trust each other less before beginning the negotiation, and trust each other even less after the online negotiation. Online negotiators report less desire for future relationships with the other party, less confidence in their performance, and less overall satisfaction. Page Ref: 283 AACSB: Interpersonal relations and teamwork Difficulty: Moderate