Homework29/7Screenshots version

TURE OR FALSE

1) In a positive bargaining zone, the most the buyer is willing to pay is greater than the least the seller will accept.

2)The negative bargaining zone indicates that there is no positive overlap between the parties' target points.

3)The best possible economic outcome for a negotiator is the one that just meets the counterparty's reservation point.

4) It is appropriate for negotiators to reveal their true reservation price if they trust and like the other party or desire a long-term relationship.

5) It is to a negotiator's advantage to set a high, somewhat difficult aspiration point early in the negotiation.

6) Negotiators who make larger and more frequent concessions maximize their slice of the pie, compared to those who make fewer and smaller concessions.

Choice Question

1) The zone of possible agreements (ZOPA) is the range between ________.

A) the buyer's and the seller's target points

B) the seller's target point and the buyer's reservation point

C) the buyer's and the seller's reservation points

D) the buyer's target point and the seller's reservation point

2) Robert wants to sell his old table to Mike. The lowest price Robert is willing to accept is $75 but he wishes to sell it at $105. The highest price Mike is willing to pay for the table is $82 but he wishes to purchase it at $73. What is the value of the bargaining zone?

A) $7B) $23C) $2D) $32

3) Robert is negotiating a contract. In which of the following situations is it appropriate for Robert to reveal his reservation point?

A) Robert knows that the other party has a great BATNA and an aggressive reservation price.

B) Robert has a poor BATNA and a weak reservation price.

C) Robert knows the other party's target point and finds it high.

D) Robert does not have time to negotiate and senses that the bargaining zone may be very small.

4) The ________ occurs when the negotiator's first offer is immediately accepted by the counterparty.

A) framing effectB) winner's curse

C) distinction bias D) chilling effect