QUESTION 1 Agents have an incentive to make transactions happen and are motivate

Question

QUESTION 1

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

an agent's incentives are not perfectly aligned with the principal's

the agent doesn't act as a face-saving buffer for the principal

the agent has limited authority to offer price reductions

the emotional detachment and tactical flexibility provided by an agent may make it hard for the counterparty to infer the principal's interests

QUESTION 2

Anger can be effective in yielding concessions if your counterpart has a weak BATNA and believes your anger is authentic.

1) True

2) False

QUESTION 3

With regard to ethically-questionable behavior in negotiation, which of the following scenarios is the best example of a traditional competitive bargaining strategy?

1) Agreeing upon a deal with a handshake, but before the contract is signed or payment exchanged, one party backs out of the agreement

2) Attempting to weaken an opponent's position by influencing their associates

3) Making a very high or low opening offer

4) Creating false information to back up a claim or argument

QUESTION 4

Consider a multiparty negotiating situation. How does the trade-off strategy of circular logrolling work?

1) Trade-offs are all presented at once, and each member gets to select the ones that work best for them.

2) Negotiators each give and exchange resources with each other.

3) 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.

4) One party gives a concession and receives cash from another party.

QUESTION 5

The most effective negotiators spend most of their time doing which of the following behaviors?

1) Making offers and counteroffers

2) Asking questions of their counterparts

3) Defending their ideas

4) Highlighting their alternatives

an agent's incentives are not perfectly aligned with the principal's

the agent doesn't act as a face-saving buffer for the principal

the agent has limited authority to offer price reductions

the emotional detachment and tactical flexibility provided by an agent may make it hard for the counterparty to infer the principal's interests

Explanation / Answer

1. a) agent's incentives are not perfectly aligned with the principal's

This can act as a severe challenge as for a smooth functioning between the agent and the principal , the incentives should be of the same spectrum but this is far from reality and creates a hurdle in achieving the goal

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