James and Neung Are Negotiating a Purchase from Neung's Tai

question 48

Multiple Choice

James and Neung are negotiating a purchase from Neung's Tai corporation. James notices that Neung is very quiet. Rather than assume that Neung is upset at how the negotiations are going, James continues to discuss the details of how the purchase will ensue. Finally James closes the deal and later learns that Neung's quiet moments were respectful moments to allow James to reveal his deal. Which strategy did James use to succeed?

• A) assume certain universal similarities
• B) emphasize description rather than interpretation
• C) practice empathy
• D) assume differences until similarity is proven
• E) treat interpretations as a working hypothesis

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Definitions:

Time Inconsistency Problems

A situation in which a person's preferences change over time, such that what they plan to do in the future is inconsistent with their future desires, leading to potential issues in decision-making or policy settings.

Precommitments

Voluntary actions or pledges made in advance by an individual or organization to restrict future choices, usually to avoid impulsive behavior or to stick to a strategic plan.

Behavioral Economists

Professionals who explore how various psychological, cognitive, emotional, cultural, and social factors affect the economic decisions made by both individuals and institutions.

Fair Trade Cocoa

Cocoa produced and sold under standards designed to support fair pricing and sustainable practices for small-scale cocoa farmers.