CBN Value Creation & Claiming Flashcards

What is the 'negotiator's dilemma' in the context of value creation versus claiming?

Answer: The tension between cooperating to create value and competing to claim a larger share

The negotiator's dilemma is the fundamental tension between sharing information to create value and withholding it to claim a larger portion.

Which post-settlement technique can improve value after an initial agreement is reached?

Answer: A post-settlement settlement where parties seek mutually better terms together

A post-settlement settlement allows parties who have already agreed to explore whether a different structure could make both sides better off.

Why is trust important for value creation in business negotiations?

Answer: Trust enables information sharing, which is essential for identifying creative trades

Without sufficient trust, parties withhold information needed to identify mutually beneficial trades, limiting value creation potential significantly.

How does adding issues to a negotiation help create value?

Answer: More issues create more opportunities for trades based on differing party priorities

When more issues are on the table, parties have more opportunities to trade items they value differently, expanding the potential for mutual gains.

What distinguishes a 'win-win' outcome from a 'win-lose' outcome in CBN value negotiation?

Answer: A win-win outcome creates value for both parties, while win-lose distributes it one-sidedly

Win-win outcomes result from integrative strategies that grow the pie, whereas win-lose outcomes involve one party capturing value at the other's expense.

In CBN, what is 'dovetailing' as a value-creation technique?

Answer: Identifying trades where each party gives up what they value less for what they value more

Dovetailing leverages differences in how parties rank issues to create trades that leave both sides better off than simple compromise would.