Question 1

The ________ states that a distinctive solution exists for each bargaining situation.
A) substitutability axiom
B) symmetric bargaining principle
C) uniqueness axiom
D) Pareto-efficient frontier

Accepted Answer

The uniqueness axiom states that there can only be one unique solution for each bargaining situation. This means that there cannot be multiple possibilities that result in the same outcome. It is a basic assumption in many bargaining models and helps to determine the fairness and efficiency of the solution. The other options (A, B, and D) are not directly related to the idea of a unique solution.

Question 2

Nash's bargaining theory specifies ________.
A) how to deal with irrational people during a negotiation
B) how negotiators should divide the pie
C) how negotiators can ensure personal growth
D) the measures of perfecting a rational model

Accepted Answer

Nash's bargaining theory focuses on dividing a "pie" in a fair and efficient way between negotiators. It does not address irrational behavior, personal growth, or the perfection of a rational model.

Question 3

Alturo Corporation provides IT products and services in five European countries.Its services include IT infrastructure,maintenance services,and technology-based support services.In an attempt to explore the Asian market,Alturo considers a joint venture with CST Corporation,a Chinese company that provides services and products for computer hardware products.The company initiates negotiations with the executives of CST Corporation.Which of the following pieces of information,if true,would construct a symmetric bargaining situation under this circumstance?
A) Alturo Corporation is financially stronger than CST Corporation and is considering an acquisition also.
B) Alturo Corporation has been experiencing a dip in their sales at home and the alliance is very crucial for them to better their performance.
C) CST Corporation is expected to benefit more from the joint venture than Alturo Corporation.
D) CST and Alturo are large corporations in terms of financial strength and both companies are expected to benefit evenly from the joint venture.

Accepted Answer

A symmetric bargaining situation is one where both parties involved have equal bargaining power. Option D states that both CST and Alturo are large corporations in terms of financial strength and are expected to benefit evenly from the joint venture, which implies a situation of symmetry. Options A and B indicate an imbalance in bargaining power as Alturo is either financially stronger or in a weaker market position than CST. Option C indicates a situation where CST would have more bargaining power, which is not symmetric.

Question 4

Which of the following,according to Nash's theorem,is a property of the unique solution obtained?
A) Unique point maximizes the geometric average of the gains available to people as measured against their reservation points.
B) The agreement point, u, of a negotiation will not satisfy the independence of irrelevant alternatives axiom.
C) The bargaining process might yield outcomes that both people find less desirable than some other feasible outcome.
D) The Pareto-optimality and symmetry axioms are not used to define the agreement points of a symmetrical game.

Accepted Answer

According to Nash's theorem, the unique solution obtained maximizes the product of gains available to people, as measured against their reservation points. This is equivalent to maximizing the geometric average of the gains. Therefore, option A is the correct answer. Option B is incorrect, as the unique solution obtained satisfies the independence of irrelevant alternatives axiom. Option C is also incorrect, as the unique solution obtained is Pareto-optimal, meaning no other feasible outcome can make both parties better off. Option D is incorrect, as the Pareto-optimality and symmetry axioms are indeed used to define the agreement points of a symmetrical game.

Question 5

Which of the following refers to the set of outcomes corresponding to the entire set of agreements that leaves no portion of the total amount of resources unallocated?
A) Pareto-efficient frontier
B) the Nash solution
C) the uniqueness axiom
D) the symmetric bargaining principle

Accepted Answer

The Pareto-efficient frontier refers to the set of outcomes that allocate resources in a way that maximizes the welfare of all parties involved, such that no further reallocation can be made without making at least one party worse off. This means that all resources are allocated in the most efficient way, leaving no portion unallocated. B refers to a bargaining solution concept, C is a property of preference relations, and D is a bargaining principle involving symmetry between the bargaining parties, none of which directly relate to the entire set of agreements that leave no portion of resources unallocated.

Question 6

Which of the following axioms states that the best outcome in a feasible set of outcomes will also be the best outcome in any smaller subset of feasible outcomes that still contains that outcome?
A) the reducibility axiom
B) the betweenness axiom
C) the independence of irrelevant alternatives axiom
D) the substitutability axiom

Accepted Answer

The axiom described in the question is the independence of irrelevant alternatives axiom, which states that the choice between two options should not be affected by the presence of a third, irrelevant option. It ensures that the best option remains the best option regardless of the other alternatives available.

Question 7

Can you think of two situations where you,or someone known to you,made a decision that was consistent with the certainty effect?

Accepted Answer

The answer of Can you think of two situations where...

Question 8

Two companies are involved in a discussion regarding the formation of a joint venture company.Both the companies are equally strong financially and stand to gain equally if the negotiation succeeds.This situation is an example of ________.
A) parallel negotiation
B) neutral bargaining
C) symmetric bargaining
D) vertical negotiation

Accepted Answer

Symmetric bargaining is a situation where both parties are equally strong and stand to gain equally from the outcome of the negotiation. In this scenario, both companies are equally strong financially and have the same interests in the formation of the joint venture company. Therefore, this is an example of symmetric bargaining.

Question 9

Briefly explain the three main types of decisions to be made by a decision maker.

Accepted Answer

The answer of Briefly explain the three main types of...

Question 10

Which of the following is a situation where the negotiator agrees on an outcome though there is another outcome that is Pareto-superior?
A) A negotiator selects his preferred outcome though it decreases the utility for the other party.
B) The negotiator abstains from engaging in discussion with the other parties involved.
C) A negotiator wins over a compromise to obtain a win-win to all the parties involved.
D) The negotiator makes an ineffective bargain resulting in losses to all the parties involved.

Accepted Answer

In this situation, the negotiator is focused on their own gain and is not considering other potential outcomes that could benefit everyone involved. They are settling for a solution that only benefits them, even though there may be other alternatives that would result in a better outcome for all parties.

Quiz 13: Are You a Rational Person Check Yourself

The ________ states that a distinctive solution exists for each bargaining situation.

Nash's bargaining theory specifies ________.

Which of the following,according to Nash's theorem,is a property of the unique solution obtained?

Which of the following refers to the set of outcomes corresponding to the entire set of agreements that leaves no portion of the total amount of resources unallocated?

Which of the following axioms states that the best outcome in a feasible set of outcomes will also be the best outcome in any smaller subset of feasible outcomes that still contains that outcome?

Can you think of two situations where you,or someone known to you,made a decision that was consistent with the certainty effect?

Two companies are involved in a discussion regarding the formation of a joint venture company.Both the companies are equally strong financially and stand to gain equally if the negotiation succeeds.This situation is an example of ________.

Briefly explain the three main types of decisions to be made by a decision maker.

Which of the following is a situation where the negotiator agrees on an outcome though there is another outcome that is Pareto-superior?