You own an almost brand new Mens Sterling Silver, date adjusting w/ silver string diamond dial Rolex Watch which was given to you as a graduation present by a relative only three months ago. The watch is in perfect condition. The watch sold new for about $3,000. Rolex watches on eBay have recently sold for $1,800 - $3,200. You listed the watch on Craigs list for $3,000 and a potential buyer has arranged to meet you at Perkins Restaurant to see the watch and possibly negotiate a cash deal. You must get at least $1,400 because that is the amount you need pay for repairs to your car. However, after looking at similar watches in stores and on eBay you hope to get $2,000 for the watch. You insist on a cash deal.

Since you listed the watch for $3,000 you decided to let the buyer make the opening offer to anchor the negotiation. Now for each offer you make carefully choose a norm and then frame each of your offers based on the norm. Make small incremental counter proposals towards your desired price and reservation price;

1. Assume Buyer's first offer is $1,500, assume buyer's second offer is $1,900

a. Based on the buyers opening offer, guess what is the buyers reservation price, thus what do you think is the ZOPA?_______________________________________

b. What is your 1^st counter-offer ($) norm & frame?

c. After receiving the buyers second offer, what is your 2^nd counter- offer ($) and norm & frame? _____________________________________________________