Chapter 10 Making Rational Decisions in Negotiations
Multiple Choice
1. Game theory provides the most precise prescriptive advice to negotiators, on the condition
that: a. They do not lie.
b. All players are perfectly rational.
c. They focus on interests, and not on arguments.
d. They aware of their BATNAs.
Ans: b
Response: p. 176
2. Which of the following is not a key set of information in Raiffa’s framework for approaching
negotiations?
a. Each party’s BATNA.
b. The relative importance of each party’s interests.
c. Each party’s known information about the other party’s position.
d. Each party’s set of interests.
Ans: c
Response: p. 177
3. Trust enables value creation through:
a. Creating contingent contracts.
b. Identifying the parties’ interests.
c. Facilitating tradeoffs between issues of different relative importance.
d. Sharing information between the parties.
Ans: d
Response: p. 186
4. Contingent contracts can create value in the presence of what feature:
a. uncertain future outcomes.
b. a negative bargaining zone.
c. differences in the parties’ time preferences.
, d. differences in the parties’ risk preferences.
Ans: a
Response: p. 184
5. Negotiators often are reluctant to give away information because they assume that:
a. Their information is too important.
b. It will anchor their final outcome.
c. Giving away information is giving away power.
d. If the other side does not ask questions, then their willingness to share information is
equally low.
Ans: c
Response: 187
True/False
6. Knowing one’s own reservation price is sufficient for making the decision of whether to accept
or reject the final offer from the other party.
Ans: True
Response: p. 177
7. The best strategy in negotiation is to get the most important issue resolved in the beginning and
then move on to less important issues.
Ans: False
Response: p. 188
8. Once a settlement has been achieved, it is wise not to re-open it, because going back to
reconsider an issue can harm the mutual trust between the parties.
Ans: False
Response: 189-190
Multiple Choice
1. Game theory provides the most precise prescriptive advice to negotiators, on the condition
that: a. They do not lie.
b. All players are perfectly rational.
c. They focus on interests, and not on arguments.
d. They aware of their BATNAs.
Ans: b
Response: p. 176
2. Which of the following is not a key set of information in Raiffa’s framework for approaching
negotiations?
a. Each party’s BATNA.
b. The relative importance of each party’s interests.
c. Each party’s known information about the other party’s position.
d. Each party’s set of interests.
Ans: c
Response: p. 177
3. Trust enables value creation through:
a. Creating contingent contracts.
b. Identifying the parties’ interests.
c. Facilitating tradeoffs between issues of different relative importance.
d. Sharing information between the parties.
Ans: d
Response: p. 186
4. Contingent contracts can create value in the presence of what feature:
a. uncertain future outcomes.
b. a negative bargaining zone.
c. differences in the parties’ time preferences.
, d. differences in the parties’ risk preferences.
Ans: a
Response: p. 184
5. Negotiators often are reluctant to give away information because they assume that:
a. Their information is too important.
b. It will anchor their final outcome.
c. Giving away information is giving away power.
d. If the other side does not ask questions, then their willingness to share information is
equally low.
Ans: c
Response: 187
True/False
6. Knowing one’s own reservation price is sufficient for making the decision of whether to accept
or reject the final offer from the other party.
Ans: True
Response: p. 177
7. The best strategy in negotiation is to get the most important issue resolved in the beginning and
then move on to less important issues.
Ans: False
Response: p. 188
8. Once a settlement has been achieved, it is wise not to re-open it, because going back to
reconsider an issue can harm the mutual trust between the parties.
Ans: False
Response: 189-190
