Question: A negotiator decides to utilize the Reduce / Increase and Split the Difference strategy in a negotiation. Her first offer on a car was $

A negotiator decides to utilize the "Reduce / Increase and Split the Difference" strategy in a negotiation. Her first offer on a car was $26,000, and the owner countered with an offer of $30,000. The negotiator decided to use the strategy and said "I'll increase my offer by $1,000 IF you will agree to equally split the remaining $3,000 difference". The seller agreed and the deal was settled at $28,500. What advantage of the strategy likely influenced the owner to accept the buyer's last offer?
The social norm of fairness (in splitting the difference) was involved in the offer.
All of the above.
The offer contained both an increase and an agreement to split the difference in the same offer.
The buyer was increasing the value of the counter by $1,000 in addition to then splitting the difference thus employing the equality norm..
 A negotiator decides to utilize the "Reduce / Increase and Split

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!