Table 9-7 Suppose OPEC Has Only Two Producers, Saudi

question 269

Multiple Choice

Table 9-7 Suppose OPEC has only two producers, Saudi Arabia and Nigeria. Saudi Arabia has far more oil reserves and is the lower cost producer compared to Nigeria. The payoff matrix in Table 9-7 shows the profits earned per day by each country. 'Low output' corresponds to producing the OPEC-assigned quota and 'high output' corresponds to producing the maximum capacity beyond the assigned quota.
-Refer to Table 9-7.Is there a dominant strategy for Nigeria and,if so,what is it?

• A) Yes, it has a dominant strategy depending on what Saudi Arabia does.
• B) No, there is no dominant strategy.
• C) Yes, the dominant strategy is to produce a low output.
• D) Yes, the dominant strategy is to produce a high output.

Identify the risks associated with frequent use of the self-serving process in negotiations.

Analyze the consequences of employing unethical negotiation tactics.

Study the empirical results related to the use of deceptive negotiation tactics between district attorneys and public defenders.

Evaluate the desirability of using deceptive negotiation tactics through a set of ethical considerations.

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Definitions:

Selective Distortion

The process by which individuals perceive and interpret information in a way that is biased by their previously held beliefs.

Selective Retention

The process by which individuals remember information that is consistent with their beliefs and forget information that is not.

External Stimuli

These are factors or events in the external environment that can provoke a response or reaction from individuals or systems.

Buying Center

A Buying Center consists of all the individuals and units that participate in the business decision-making process for purchasing products or services.