When Bargaining Is Moving Smoothly, Toughness Is Counterproductive

question 35

True/False

When bargaining is moving smoothly, toughness is counterproductive. Excessive toughness in bargaining could be a particularly bad strategy in buyer-seller interactions where future interactions were expected. If one party always chose a very tough stance, the other party will develop a similar approach to the bargaining interaction. This could result in lower transaction costs, good future agreements, and, where possible, continuance of the bargaining opponent.

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Definitions:

Rudimentary Sense

A basic or undeveloped form of sensing or understanding something.

Summing Ability

The capacity to add together various quantities or figures.

Animal Behaviors

The observable actions or reactions of animals in response to external or internal stimuli, often studied to understand instinctual and learned behaviors.

Cognitive Ethology

A branch of ethology that studies the mental experiences of animals, particularly their cognitive processes and natural behaviors.