CBN Concession Strategies & Tactics 2 — Questions and Answers
Question 1: In negotiation, 'anchoring' refers to which of the following concepts?
- Fixing the contract to a specific legal jurisdiction
- Setting an initial position that influences the perceived range of the entire negotiation (Correct answer)
- Using a third party to validate the fairness of your position
- Refusing all concessions until the other party moves first
Correct answer: Setting an initial position that influences the perceived range of the entire negotiation
Anchoring establishes a reference point with your first offer that shapes both parties' perceptions of what constitutes a reasonable outcome throughout the negotiation.
Question 2: Why is it important to attach conditions or justifications when making a concession?
- To comply with standard commercial contract law requirements
- To prevent the other party from expecting future concessions at the same pace (Correct answer)
- To establish clear dominance in the negotiation dynamic
- To create a written record of all concessions made during talks
Correct answer: To prevent the other party from expecting future concessions at the same pace
Justified concessions signal that each movement was earned rather than arbitrary, managing the other party's expectations about the pace and size of future concessions.
Question 3: What is the primary risk of making large, rapid concessions early in a negotiation?
- It may cause the other party to trust you too quickly
- It raises the other party's aspiration level and expectation for further concessions (Correct answer)
- It creates a binding legal obligation to continue conceding throughout talks
- It unnecessarily reduces the total time available for negotiation
Correct answer: It raises the other party's aspiration level and expectation for further concessions
Large early concessions signal that your opening position was inflated, raising the other party's expectations and encouraging them to demand further movement.
Question 4: In a multi-issue negotiation, trading concessions across different issues based on each party's differing priorities is called:
- Bundling
- Logrolling (Correct answer)
- Anchoring
- Bracketing
Correct answer: Logrolling
Logrolling involves trading concessions on different issues based on each party's priorities, expanding the overall value of the deal for both sides.
Question 5: What does the 'bracketing' concession strategy involve?
- Adding legal brackets to flag contested terms in contract drafts
- Making an offer calculated so the midpoint between positions lands at your target (Correct answer)
- Refusing to move until the other party states a bracketed counter-position
- Grouping all planned concessions into a single final offer package
Correct answer: Making an offer calculated so the midpoint between positions lands at your target
Bracketing involves making an offer calculated so that the expected midpoint between your offer and the other party's counter lands precisely at your target outcome.
Question 6: Which concession approach is most effective when you want to credibly signal that you have reached your final position?
- A large single concession paired with a 'take it or leave it' ultimatum
- A series of equal-sized concessions to show consistency
- A diminishing concession paired with a clear verbal statement of limits (Correct answer)
- Refusing to make any further concession without explanation
Correct answer: A diminishing concession paired with a clear verbal statement of limits
A diminishing concession combined with a verbal signal (e.g., 'this is truly all I can offer') communicates that you are at or very near your reservation price.
Question 7: What does the 'splitting the difference' technique mean in concession-making?
- Dividing the contract obligations into two separate legal agreements
- Both parties conceding to meet exactly halfway between their stated positions (Correct answer)
- Splitting the negotiation team into two separate working groups
- Dividing a single concession across multiple payment periods
Correct answer: Both parties conceding to meet exactly halfway between their stated positions
Splitting the difference is a simple compromise technique where both parties agree to settle at the midpoint of their last stated positions.
CBN Concession Strategies & Tactics 2
In negotiation, 'anchoring' refers to which of the following concepts?