Chapter 4 Bounded Awareness

Chapter 4 Bounded Awareness 1. An example of bounded awareness in negotiations is when negotiators: a. Assume that what worked in one context will not work in another, even when the contexts are similar. b. Fail to consider the impact of their decisions on others outside the negotiation c. Fail to realize that a publicly known deadline affects them just as much as the other party, and think they are put at an asymmetric advantage. d. All of the above. Ans: b Response: p. 75-76 2. A publisher wants to bid for the rights to publish a celebrity’s memoir. The publisher would be better off to: a. Bid higher than what they think the book is worth, to avoid the winner’s curse. b. Bid lower than what they think the book is worth, to avoid the winner’s curse. c. Enter the bid early, in order to reduce uncertainty. d. Enter the bid late, in order to reduce uncertainty. Answer: b. Response: p. 77 3. Face-to-face interaction in negotiations has been found to: a. Help overcome the inefficient outcomes predicted by game theory. b. Enhance the rationality of players as predicted by game theory. c. Increase the attentional focus on shared information between the negotiating parties. d. Make negotiators more eager to reach agreement in simple negotiations and less eager to reach agreement in complex negotiations. Ans: a Response: p. 76 4. The most critical barrier to a creative decision is: a. System 2 thinking. b. The failure to recognize subtle changes in the situation. c. The failure to assign appropriate weight to information that is not readily available. d. A narrow definition of the problem space. Ans: d Response: p. 64 5. Which of the following biases is most related to the Slippery Slope theory? a. System neglect b. Reference group neglect c. Change blindness d. Inattentional blindness Ans: c Response: p. 67 True/False 6. In creative problem solving, composing a group of people, each with unique knowledge and perspective, is usually enough to avoid the problems of bounded awareness. Ans: False Response: p. 70 7. The Slippery Slope theory explains why a single instance of unethical behavior can be justified. Ans: False Response: p. 67 Fill in the blank 8. Entrepreneurs often fall prey to self-focus, which makes them too eager to enter _________ contests and too reluctant to enter ___________ competitions. Ans: simple; difficult Response: p. 79 9. Groups have a tendency to focus on _________ information, at the expense of _____________ information. Ans: shared; unique Response: p. 70 10. When people are asked to predict their emotional responses to a negative event, such as a job termination, they expect that their emotional reaction will last _________ than it turns out to. Ans: longer Response: p. 68