The Sequential Approach to Concession-Making

question 5

Multiple Choice

The sequential approach to concession-making

• A)Is very popular in Asian cultures.
• B)Is similar to the holistic approach.
• C)Implies that concession making begins only after all participants discuss all issues.
• D)Implies that negotiators expect each side to give and take on individual issues in sequence.

Grasp the concept of sunk costs and their irrelevance to future economic decisions.

Interpret the law of comparative advantage and its implications for productivity and trade.

Analyze scenarios to determine individuals’ or countries’ comparative and absolute advantages.

Understand the concept of absolute and comparative advantage in economic transactions.

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by how much it resembles what we consider to be a typical example of that event.

Availability Heuristic

A quick-thinking process that depends on the first examples that pop into someone's head when they are considering a particular subject, idea, approach, or choice.

Relative Comparisons

The act of evaluating something in relation to another similar item.

Availability Heuristic

A cognitive shortcut that relies on the immediate examples that come to a person’s mind when evaluating a specific topic, concept, method or decision.