Concession Strategies & Tactics Flashcards

What is the primary danger of relying on 'splitting the difference' as a default concession strategy?

Answer: It rewards inflated opening positions since the outcome depends on the midpoint

Splitting the difference incentivizes extreme opening positions because the final outcome is determined by the midpoint between both parties' last stated positions.

What is a 'package concession' or 'package deal' in negotiation?

Answer: Multiple concessions on various issues bundled together in one comprehensive offer

Package deals bundle multiple issues together, allowing parties to trade value across dimensions and create more satisfying outcomes than piecemeal single-issue bargaining.

Which concession strategy involves setting an extreme initial demand, then making planned concessions toward a pre-determined reasonable target?

Answer: Highball or lowball opening

The highball/lowball tactic begins with an extreme opening position, with pre-planned concessions designed to arrive at a target that appears reasonable by comparison.

The 'bogey' concession tactic involves which of the following?

Answer: Claiming a budget or resource constraint to pressure the other party into concessions

The bogey tactic involves claiming a budget or authority limitation — real or exaggerated — to pressure the other party into making price or terms concessions.

Why should negotiators avoid making 'unilateral concessions' — giving without receiving anything in return?

Answer: They deplete your negotiating capital without generating reciprocal movement

Unilateral concessions train the other party to wait passively rather than reciprocate, draining your bargaining position with no corresponding gain.

What is the optimal approach when granting a concession that the other party has explicitly requested?

Answer: Pause briefly, then grant it with a condition or justification attached

Pausing before conceding and attaching a condition or reason signals that the movement was earned, sets appropriate expectations, and prevents the other party from immediately demanding more.

In negotiation theory, what does 'reservation price' mean in the context of concession-making?

Answer: The point beyond which a negotiator will not concede, preferring no deal to a worse deal

The reservation price (or walk-away point) is the worst acceptable outcome a negotiator will accept; concessions should never push the final agreement past this threshold.