NEGOTIATION – EXAM QUESTIONS (from exams 2001/2006/2007/2008/2011/2018/”example”)
1. What are the three main problems typically associated with a moderate offer? What alternative would
you suggest? Why?
2. How to open a negotiation? Justify your answer.
3. How to react to an "extreme" offer? What mistakes should be avoided? Justify your answer.
4. How to react to a "boulwarian" offer? Justify your answer.
5. What are the three main problems typically associated with a "boulwarian" offer?
6. Sentence by Dean Pruitt. Discuss the role of arguments in a negotiation.
7. Three ingredients of an effective threat. Provide small examples.
8. From the perspective of the bidders in an internet auction, what is the main advantage of a second-
price sealed bid auction (and for the auctioneer as well)?
9. Use of Strategic Misrepresentation in the Daniels’ case. 2 steps:
Step1: (1) give example of language that could be used and (2) from a tactical point of view, the key
difference between lie and a strategic misrepresentation.
Step 2: (1) give example of language that could be used and (2) Step 2 is essential because of the
following fundamental reason.
10. What mistakes should parties avoid to build constructive long term relationships that favor value
creation?
11. SPSBA vs English Auction
12. Best Auction to avoid collusion?
13. Best Auction to extract information about the bidders’ valuation?
14. You realize that your counterpart will tend to discount what you say during a negotiation. However,
you do want to convince him or her of the truth. How could you go about it?
15. You and one competitor are bidding in a FPSBA with asymmetric information (like Maxco-Gambit).
Would it be useful if you had a reputation for “stupidity”?
16. Potential problems associated with a signalling strategy. How to avoid these problems?
17. Key features of successful strategies to induce cooperation?
18. “The power to constrain an adversary depends upon the power to bind oneself”. Explain this paradox.
What does the paradox teach us about bargaining strategy?
19. Differences in preferences and expectations are an obstacle to an agreement. True/False
20. In order to maximize our own surplus (as opposed to joint gains), we should apply maximum pressure
on all issues. True/False
21. A negotiator is less likely to make a concession when he/she operates in a positive frame. True/False
22. To be credible, an offer has to be acceptable. True/False
Note: Questions from the exam with no date (in Portuguese) are not included here.